Frequently asked questions Pages

What are we talking about?

REIV Information Officers David Dundas and Jim Lourandos address some of the current common questions from Members.

Jim Lourandos & David Dundas

REIV Information Officers

Residential Notices to Vacate

An agent must include prescribed evidence with the notice to vacate. VCAT will not provide a possession order in cases where the renter has failed to adhere to a notice to vacate but the required documents were not included with the notice.

Section 91ZZO names which notices must include documentary evidence prescribed by the Director of Consumer Affairs, they are: 91ZW Rental provider’s principal place of residence

91ZY Repairs

91ZY Demolition

91ZZ Premises to be used for business

91ZZA Premises to be occupied by rental provider or provider’s family 91ZZB Premises to be sold

91ZZC Premises required for public purposes

The required evidence is listed on cav.vic.gov.au or it can be found in the Information Sheet “Residential rental – Notices to Vacate” on www.reiv.com.au/infomation-sheets

There is no alternative to the inclusion of the prescribed information.

Notice of Intention to Sell – who gives it?

When selling a rented residential property, it is sometimes the case that the selling agency is not also the managing agency. Communication between the two will be important, just as it is between the sales and property management departments where both tasks are being undertaken by the one agency.

When two agencies are involved each is an agent of the owner under authorities setting out their respective roles, both require communication with the renter occupying the property. There is nothing prescribed in the Act as to which agency should be the one to communicate with the renter. A management authority might state the agent’s role is to prepare and issue RTA notices, but it may not say this role rests exclusively with managing agent. Sale authorities tend to be less specific about tasks to be undertaken.

Efficiency and the minimisation of error should be important considerations. As soon as an additional step is added to a process, there is likely to be a loss of efficiency and more errors. It is therefore recommended that the Notice of Intention Sell and other sales related notices such as those for access be given by the selling agent. As a courtesy give a copy of the Notice of Intention to Sell to the managing agent.

Because the selling agent will obtain the sale authority, they will be the first to have written confirmation of the intention to sell. Also, the notice of intention to sell needs to be served on the renter 14 days before the first inspection by a potential buyer, so it needs to be done for the selling agent to do their job. To pass this task to the managing agent, who has no vested interest in it, is to increase the risk of delay. Selling agents need to be familiar with notices to be served and the proper way of doing so, such as the fact that a prescribed form available on cav.vic.gov.au must be used when giving a notice of intention to sell. Their understanding will be assisted by referring to the Information Sheets “Selling a rented residential property” and “Serving notices on renters” on www.reiv.com.au/infomation-sheets

Compensation for inspections of rented residential premises

Where a right of access is exercised under section 86(1)(b) to show a rented property to a prospective buyer or lender, or to conduct a sales open for inspection, the renter is entitled to compensation for each inspection of $30 or half the daily rent, whichever is the greater. This is the only circumstance where compensation is prescribed for access, perversely the Act does not require payment of compensation to a renter who simply agrees to inspections without a formal notice of access. However, the rental provider is free to compensate a co-operative, easygoing renter, so they are not worse off than an obstructionist renter.

There is potential for dispute about compensation so good record keeping is essential. There is no prescribed mechanism for this, however a possibly viable method involves recording communication between selling and managing agents, even if they are in the same agency, and recording amounts owed and payments made in the rental accounts. This could be achieved by the selling agent preparing a weekly invoice on behalf of the renter and passing it to the managing agent for entry into the property management accounting system as a creditor payment. www.reiv.com.au/infomation-sheets

Please note: This is general information and should not be treated as a substitute for reading legislation, regulations and official guidelines, or for seeking legal advice where necessary.