In the Sept 24, 2024 edition of the REIV’s Real Estate Matters podcast Nicole Rich, Executive Director of Regulatory Services at Consumer Affairs Victoria (CAV), provided crucial updates on the activities of the Victorian Rental Taskforce. The focus was on the responsibilities of real estate agencies when managing properties that fail to meet minimum standards and safety checks as required under the Residential Tenancies Act.
A critical question was posed: What is the position of agencies managing properties where they know, or should reasonably know, that the property fails to comply with legislated safety and minimum standard requirements?
The message was clear:
- Criminal liability: Agencies must not facilitate the rental of properties that fall short of the legal requirements. If an agency knowingly rents a non-compliant property, the agency and its directors could be criminally liable.
- Public Rental Non-Compliance Register: If the Victorian Civil and Administrative Tribunal (VCAT) makes an adverse finding against the agency, that agency will be named on the Public Rental Non-Compliance Register, even if they are no longer managing the property at the time of the ruling.
- No defence for non-engagement: It is no defence for agencies to point to the owner’s inaction, non-responsiveness or assertions without evidence.
Given these risks, and with penalties of $11,000+ for individuals and $59,000+ for companies, the importance of comprehensive compliance management has never been greater.
Ask us how we can help close your compliance gap and reduce the risk for your agency and directors.
Listen to the full REIV podcast below.
