Real estate agencies in court over rental ad breaches

By Our Reporter
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Victoria’s rental market is under scrutiny as Consumer Affairs Victoria (CAV) intensifies its enforcement of rental laws. The focus is on agencies allegedly breaching regulations by not listing fixed rental prices, a practice aimed at preventing rental bidding.

Barry Plant Werribee, Ray White Point Cook, and White Lotus Property Group in Truganina are among five agencies facing court proceedings after opting not to pay infringement notices issued by CAV’s Renting Taskforce. The core allegation involves the failure to list a fixed rental price in online advertisements, instead using price ranges or phrases like “Contact agent” on platforms such as realestate.com.au and domain.com.au. Under the 2021 rental reforms, these tactics are classified as rental bidding—a banned practice that pressures prospective tenants to offer above-market rent without clear pricing guidance.

Despite being given the option to resolve the matter by paying fines—currently $11,855 for companies—the agencies have chosen to contest the charges in court, where the maximum penalty per offence exceeds $59,000. This legal challenge underscores the seriousness with which the Victorian government views rental law violations.

The Renting Taskforce, established in March 2024, has been actively inspecting rental properties across the state, including in Wyndham. The taskforce focuses on several key areas of non-compliance:

Substandard Properties: Properties lacking essential features such as functional kitchens, lockable external doors, or structural soundness.

False Advertising: Misleading descriptions or images in property listings that do not accurately represent the rental.

Unlawful Practices: Instances where bonds are not lodged with the Residential Tenancies Bond Authority (RTBA) or where rental bidding is encouraged, despite being prohibited.

In Werribee, a suburb within Wyndham, inspection blitzes have revealed multiple breaches, leading to over 40 fines totaling more than $450,000 since March 2024.

The Victorian government has introduced the Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill, aiming to strengthen tenant protections. Key proposals include eliminating no-cause evictions, banning rental bidding, extending notice periods for rent increases and evictions to 90 days, ensuring properties meet minimum standards before being advertised, and implementing mandatory education and licensing requirements for real estate professionals.

Residents are encouraged to report suspected violations through CAV’s online complaint form. This tool allows individuals to submit evidence, such as photographs, anonymously, facilitating targeted inspections and enforcement actions.

The heightened enforcement in Wyndham serves as a warning to rental providers and real estate agents to adhere strictly to legal standards. For renters, these measures aim to ensure safer and more reliable housing options.

The community is encouraged to remain vigilant and report any suspected non-compliant rental listings to Consumer Affairs Victoria. Such collective efforts are vital in maintaining the integrity of the rental market and protecting tenant rights.


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