Every tenant in Victoria will have the right to have a pet in their rental property under sweeping reforms to the state's tenancy rules, which will also prohibit real estate agents from soliciting higher bids for rent.

Key points: Owners who are refused permission to have a pet can appeal to VCAT, courts

Owners who are refused permission to have a pet can appeal to VCAT, courts For rents over $760 per week, landlords can't ask for bonds worth more than a month's rent

For rents over $760 per week, landlords can't ask for bonds worth more than a month's rent Premier Daniel Andrews says the reforms will make renting fairer

The reforms announced by the Andrews Government, give tenants more rights, will allow them to stay on longer leases and make bonds smaller and fairer, in response to a detailed review of the state's Residential Tenancies Act.

They also crack down on rental bidding, where tenants are forced to out-bid each other on rent, and limit rent increases to once a year, giving more long term security for renters.

Critics said while estate agents will be prohibited from "soliciting" higher bids for rent, there was nothing to prevent renters from offering more.

Other provisions include creating a publicly available blacklist of landlords and estate agents who have been found in breach of rental laws, or have had action taken against them.

"One in in four Victorians rent and for too long we've had an imbalance," Premier Daniel Andrews said.

"Things have not been as fair as they should be.

"To make sure everyone's got a secure, fit-for-purpose home, whether they own it or not."

Owning a pet in a rental will also be made easier under the new rules.

Existing rules allow landlords to automatically include a no pets clause in rental agreements.

The RSPCA said over the past two years, 15 per cent of the dogs and cats turned in to them were surrendered because the owners were moving and could not take their pets.

While landlords will still need to provide consent, they will only be able to refuse in certain circumstances.

If, for example, a renter was refused the right to have a dog, the decision could be appealed to VCAT or the courts.

In a limited number of circumstances, it would not be possible to have a pet, if for example a local council banned backyard chickens, or if a body corporate banned pets.

Animals could also be banned in a heritage dwelling if the cost of repairs was considered to be too high.

The 'big struggle' to find a place to rent

For Victorians planning on signing a lease where the rent is $760 per week or less, landlords will not be able to ask for bonds worth more than one month's rent.

Grace Reeves was given two weeks' notice to move out before her accommodation was renovated. ( ABC News: James Oaten )

The move which is expected to cover the "vast majority" of rental households, the Government said.

Grace Reeves, a graphic designer who plans to study teaching, said she was living in a place that was "barely fit for human habitation" and was given two weeks' notice when her landlord decided to renovate.

"It was a big struggle. The rental market is extremely competitive," she said.

"Every inspection there were 30 to 40 people there.

"We learned very quickly that in order to get an apartment we wanted we'd have to be offering more money than what was being asked."

Ms Reeves said they had to offer an extra $20 a week in rent to get the place they wanted.

She said it was not fair that landlords and agents could get away with exploiting tenants.

"As long as I'm in a house where I get rights and I'm treated like a human being then I'm okay with [renting]," she said.

"I understand that owning property isn't realistic for everybody."

Watchdog role for new commissioner

Tenants will also be able to apply for the release of bonds without written consent from landlords, who will have a fortnight to raise a dispute before the money is automatically repaid.

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Landlords will only be able to increase rent once per year, and "no specified reason" notices to vacate will be outlawed.

It will also be made easier for tenants to make minor modifications to a rental property, such as installing hooks for picture frames.

The State Government will also appoint a Commissioner for Residential Tenancies, to advocate on behalf of tenants.

"Someone who can be a watchdog, someone who can safeguard to ensure that in what is often an imbalanced relationship where the landlord and agent have all the power and given how tight the market is, the tenant can't speak up, [they] have no voice," Mr Andrews said.

However the measures do not include minimum standards for accommodation.

The Victorian Council of Social Service (VCOSS) said homes must be weather-proof, have guaranteed hot water and locks that work.

"You should be able to open your windows, you should be able to lock your doors, you should be able to turn your oven on and know that it works," VCOSS CEO Emma King said.

"These are basic things that we're working on with government on top of the announcement today to say let's really lift the bar lets put minimum standards in there as well."

Minister for Consumer Affairs Marlene Kairouz said the move would give renters a better deal.

"These changes will crack down on rental bidding, make it easier and faster for renters to get their bond back, and will better hold landlords and agents to account for their actions," she said.

It is expected the legislation will be introduced in 2018.

The Real Estate Institute of Victoria has expressed concern that some of the changes may force the cost of rent up and said that landlords were being exposed at every part of the process.