The possibility of a fixed long-term lease will become a reality for tenants and landlords as of next year, in an Australian-first announcement by the state government. New legislation, expected to be in place by 2018, will allow the possibility of leases beyond five years and allow ‘greater security’ for both tenants and landlords.
Currently, one-year leases are the norm for most renters in Victoria, which suits many landlords and tenants with varying personal circumstances. The new option for a longer lease has been designed with families in mind, according to Premier Daniel Andrews.
“Raising a family is stressful enough without worrying about whether you need to move every 12 months. Long-term leases will end the uncertainty,” Mr Andrews said. “There are more than 884,000 Victorians who rent or own a rental property. This change will give renters the chance to put down roots and landlords a more certain income.”
Other tenants will also consider a longer lease, in the opinion of Lucas Property Management Director Dylan Emmett. “This may also suit many local university or post-graduate students, young professionals and contract workers. With over 25 percent of Victorians now currently renting, many choose to make their rental property their ‘home’.”
“In fact, more than one in five tenants across Victoria have already been in the same property for over five years. Having the option to allow greater certainty to tenants is fantastic, as is the potential of a steady income for landlords. At the end of the day, the circumstances of our tenants and landlords differ, so it’s great to potentially be able to offer more choices to both parties.”
This change is the first rental change announced by the state government, who is in the midst of reviewing and reforming the current residential tenancy laws. Lucas will continue to keep you informed of all legislative changes that will impact property owners and renters.