3 must-know compliance risks for rental providers

Managing the maintenance of your investment property can not only prevent damage and property deterioration but also protect rental providers and real estate agencies from legal and financial risk.

And with the introduction of new laws in Victoria, even brand-new properties now require routine inspections and upkeep to ensure they are safe and compliant for people to live in. 

For many investors, it’s a lot to juggle — keeping up with changing legislation, avoiding penalties, and coordinating with tradespeople to carry out certified checks.

Here are three common issues that property managers and rental providers need to be aware of and how to stay ahead of them.

Meeting rental minimum standards 

Ensuring that your property is compliant is now mandated by Consumer Affairs Victoria, with the Residential Tenancies Act outlining 14 categories for minimum standards for rental properties. 

“The new laws, welcomed by Tenants Victoria, place the onus on the rental provider to resolve issues that could threaten a renter’s health, such as the appearance of mould,” says Matthew Vethecan, co-founder of compliance and property safety company CheckHero.

It’s now mandated that rental providers must ensure that a professional deals with any problems that arise.

Regulations have now made it illegal to allow a new renter to move into a property that doesn’t meet these minimum standards, and fines can exceed $11,000 in Victoria. A recent targeted inspection campaign by Consumer Affairs issued over 55 fines totalling more than $540,000 for breaches of rental laws, including a failure to meet minimum standards. Agencies that breach compliance obligations may be listed publicly on the Consumer Affairs website — a reputational risk that could have serious consequences for their business.

Gas and electrical safety compliance risks

Mandated reforms in Victoria rightly prioritise renter welfare and include mandatory gas and electrical safety checks every two years, and smoke alarm checks every 12 months. Gas and electrical compliance checks in rental properties must be carried out by certified tradespeople to ensure they meet the necessary standards set by regulatory bodies. 

“Rental providers bear the responsibility of ensuring the safety of gas appliances, while renters are encouraged to remain vigilant and report any appliance-related issues promptly. Rental providers are exposing themselves to potential fines if a renter hasn’t done their duty and alerted them to an issue at the property. Ensuring that regular safety checks are being undertaken is paramount.” Vethecan adds.

For rental providers, keeping an eye on their property can keep minor issues from escalating into major repairs that can cost more in the long run.

Missed Or Delayed Inspections 

Booking routine maintenance checks can quickly become a logistical headache. Coordinating schedules between trades, renters, and rental providers often results in delays, miscommunication, and missed inspections. 

To streamline this process, more rental providers and agencies are turning to technology that simplifies compliance and maintenance scheduling.

“Thankfully, outsourcing gas and electricity compliance checks through CheckHero is becoming an increasingly popular solution for real estate agencies. This reduces the need for follow-ups and reminders, helping ensure the job gets done on time,” Vethecan says. 

CheckHero’s platform also gives renters the flexibility to book appointments at a time that suits them — helping ensure nothing is missed and everyone stays informed.

As compliance regulations evolve, rental providers and property managers need to stay vigilant and organised to avoid unnecessary risk. By investing in proactive maintenance and embracing the right tools, it’s possible to simplify the process and meet all your compliance obligations with confidence.