The Victorian government requires residential rental providers to give prospective renters a Mandatory Disclosure Statement before they sign a lease. This aims to increase transparency and ensure that renters have the information they need about a property.

What is the Mandatory Disclosure Statement?

The Mandatory Disclosure Statement is designed to furnish renters with essential information about a property prior to occupancy. Key disclosures include:

• Sale Status: Notification if the property is currently for sale or if there is an ongoing proposal to sell the property.
• Safety Compliance: Confirmation of the most recent gas and electrical safety checks, and pool barrier compliance checks, if applicable. Additionally, any outstanding recommendations for work resulting from these checks can  be disclosed.
• Maintenance History: Information on any known issues with mould or dampness related to the building’s exterior in the past three years.
• Heritage and Planning: Disclosure if the property is a registered place under the Heritage Act 2017 or if it is affected by a building or planning application that has been lodged with the relevant authority.
• Illegal Activities: Indication if the property has been the site of a homicide in the last five years or if it is known to have been contaminated due to prior use for drug trafficking or cultivation in the same period.
• Embedded Electricity Networks: Details if the property is supplied with electricity from an embedded network.

These disclosures were mandated to ensure renters have a comprehensive understanding of the property’s condition and any factors that might influence their decision to lease.

Implications for Rental Providers

For rental providers, this Statement introduces several responsibilities:

• Enhanced Transparency: Rental providers must be forthcoming with detailed information about their property, ensuring all disclosures are accurate and complete.
• Legal Obligations: Failure to provide the required disclosures can lead to legal consequences. Non-compliance may result in renters making a general application to the Victorian Civil and Administrative Tribunal (VCAT), which can issue compensation orders or other directives.
• Administrative Duties: To ensure compliance, rental providers must keep meticulous records of safety checks, maintenance, and other relevant documentation.

The Role of Professional Property Management

The intricate nature of these requirements makes the expertise of an experienced property manager a highly valuable asset.

• Regulatory Adherence: Professional property managers keep up-to-date with changing legal requirements, ensuring that rental providers remain compliant and avoid legal issues.
• Risk Mitigation: Property managers can help rental providers avoid legal disputes and challenges by ensuring accurate documentation and management of all necessary disclosures.
• Efficiency: Handling the myriad details of property management, from safety inspections to maintenance records, can be time-consuming. Property managers streamline these processes, allowing rental providers to focus on other priorities.
• Fostering Trust: Transparent and thorough disclosure practices build trust with renters, leading to more harmonious and enduring rental relationships.

The Mandatory Disclosure Statement underscores the importance of transparency in Victoria’s rental market. Rental providers must approach these requirements earnestly to uphold their legal obligations and maintain positive tenant relations. 

Partnering with experienced property management professionals, like us at Mint Property Management, can simplify compliance and ensure that all aspects of property leasing are handled with expertise and diligence. Get in touch with us at Mint Property Management today for expert guidance on understanding and implementing these new regulations, as well as comprehensive support for effective property management.