Chris Smith and his greyhound Franco at their Frankston rental property. Picture: Jason Edwards

LANDLORDS and real estate agents believe the changes proposed for Victoria’s rental laws would be “extremely damaging” to the market, by causing landlords to raise rents or ditch their investment properties altogether, a new survey has found.

The Real Estate Institute of Victoria says these outcomes could create a shortfall of affordable rentals.

But tenants’ advocates say reforms are necessary to give the increasing number of Victorians renting their homes more security.

A REIV survey of 334 landlords and 195 property managers found the proposed changes these parties are most concerned about include the banning of unreasonable “no pets” clauses and the removal of landlords’ power to evict tenants for “no specified reason”.

Chris Smith thinks landlords have “nothing to lose” by allowing pets, as most pet-owning tenants would be happy to pay an extra pet bond. Picture: Jason Edwards

REIV’s property management chapter chairman Sam Nokes said landlords would also incur “significant costs” if minimum standards were introduced and would likely look to cover these by increasing rents, or exit the market altogether.

The State Government unveiled these options, among others, last month following a year-long review of the Residential Tenancies Act.

Victorians can submit feedback on the proposed reforms until Friday, after which a final “reforms package” will be put together.

Among the minimum standards suggested are that a rental home be weatherproof and structurally sound, have an adequate kitchen, a flushing toilet, a functioning smoke alarm and heating in main living areas.

In the REIV survey, 46 per cent of respondents believed the proposed reforms would be “extremely damaging for the whole market” and 47 per cent that they would be “beneficial for tenants but harmful for landlords”.

Chris Smith and his greyhound Franco at their Frankston rental property. Picture: Jason Edwards

Eighty per cent were against tenants being able to keep pets without landlord permission, while 15 per cent supported this if the tenant paid an additional bond, and 89 per cent believed landlords should retain the right to evict tenants for “no specified reason”.

Tenant’s Union of Victoria policy officer Yaelle Caspi said the suggested minimum standards would simply make rental housing safer — “we’re not talking about luxury” — while ditching the ‘no pets’ clause would allow tenants to make their rental feel more like a home.

Rent.com.au chief executive Greg Bader said rental legislation needed to recognise that almost a third of Australians were tenants, and that was likely to rise: “Initiatives such as longer leases will give renting families more security,” he said.

Chris Smith, who keeps his greyhound Franco in his Frankston rental, said it could be challenging to find a rental that allowed pets, but landlords really had “nothing to lose”.

The 25-year-old said most pet-owning tenants “would be happy to pay an extra bond” if it meant being able to live with their furry friend.

samantha.landy@news.com.au