Tenants face delays at VCAT as residential cases balloon

Pending cases on the residential tenancies list have exploded since the pandemic began, up 598 per cent to 23,892 cases as of March, compared to three years earlier, public caseload data shows. VCAT declined to comment for this story.

Tenants have had several significant wins recently. In October, VCAT member Kylea Campana ruled a Shepparton landlord couple could not encourage their tenants to sell their investment property because the tight and unaffordable rental market could make a family of five homeless. It was ruled that the house could be sold with the tenants in place.

“There is no doubt that the rented premises are the rental providers’ property and they are entitled to sell it,” Campana’s decision reads. “They should also be able to realize the best price possible for their investment – ​​but at what cost to the renters?”

VCAT member Filip Gelev ruled against a landlord attempting to evict their tenant because a family member wanted to move in because the property was held in a company name, and therefore did not have access to the quoted reason to vacate.

“The rental provider in this case is not an individual and he does not have relatives,” Gelev’s decision reads.

The tribunal has also blocked rent increases. Member Katherine Metcalf in May ruled a $130 per week rent increase was invalid because the landlord and property managers did not provide a “market review” that would allow tenants to assess whether it was reasonable.

The VCAT ruling does not specify if the tenant was left paying extra rent for seven months until its decision, but this would be required under state law.

Not-for-profit Anika Legal provides renters with pro bono legal advice before they take disputes to the tribunal. Chief executive Noel Lim said 40 per cent of clients who had meritorious cases refused to go to the tribunal.

“VCAT is exacerbating the power imbalance between renters and property managers and landlords because renters don’t want to go to VCAT,” he said. “It’s stopping this large group of renters from getting justice because they don’t even get through the door.”

Lim said his organization was formulating a proposal to rectify the issue.

Tenants Victoria director of client services Amy Frew said compensation through the tribunal was one of the few ways renters could get justice, but delays blunted its effectiveness. She also called for change.

“Every dollar really counts for renters and such tribunal delays only intensify their financial stressors,” she said. “Lack of enforcement options also means that renters struggle for months to get urgent repairs such as heaters installed or repaired, or mold removed from their children’s bedrooms.

“Inconsistent decisions, and lack of accessible appeal options, lead to uncertainty in the law, and landlords can be less willing to settle when they can wait for a hearing and then take their chances on the day. To ensure quality and consistency of decision-making at the tribunal level, Tenants Victoria is calling for an internal review process for VCAT Residential Tenancies decisions.”

Loading

Real Estate Institute of Victoria senior vice president Jacob Caine said he felt VCAT was working to ensure tenants’ rights were protected.

“We’re hearing some hesitancy from members to enforce the legislation and requirements. Standards have shifted somewhat,” he said. “A lot of owners aren’t getting favorable rulings and … renters are getting more leeway than previously.

“I think when a renter does pursue those compliance issues VCAT is effective in terms of ruling in line with the requirements, definitely.”

Caine said that while a backlog of cases initiated in September or before remained, in his experience new cases were being dealt with in a reasonable timeframe.