Report: Too Hot, Too Cold, Too Costly
Victorian Renters Pay the Price for Energy-Inefficient Homes
Renters in Victoria are living in energy-inefficient homes that harm their finances, health, and wellbeing. With no control over the properties they live in, renters are powerless to address these issues. Many move rather than pursue their legal right to repairs or improvements, incurring relocation costs estimated by the Grattan Institute to cost upwards of $6,000. This leaves the problem of unsafe and energy inefficient homes for the next, unknowing renter to inherit.
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Key Findings:
- 47% of renters move rather than seek repairs: Renters avoid legal pathways because of fears of retaliation, including unaffordable rent increases or eviction, in an ultra-tight rental market.
- Renters are fixing problems themselves: Many renters take on the cost and effort of making repairs or improvements, such as sealing draughts or purchasing heaters and fans, because landlords fail to act. These out-of-pocket expenses add further financial strain to already vulnerable households.
- Financial strain for renters and taxpayers: Landlords’ failures often force renters into energy debt. This increases renters’ reliance on Utility Relief Grants, transferring the cost of their negligence to taxpayers.
- Health and safety risks: Renters endure cold winters and excessive heat in summer due to poorly insulated homes, draughty windows, and inefficient or broken heating and cooling systems, harming their physical and mental health.
- Lack of transparency: Without disclosure requirements, renters often move into energy-inefficient homes without knowing the costs. This leaves them unprepared for high energy bills, financial strain, and health risks linked to poor living conditions.
- Costs to taxpayers and utility providers: When landlords fail to maintain rental properties, more renters require government funded utility relief grants, and cannot repay their utility debts.
Key Recommendations:
- Strengthen Minimum Standards
Expand minimum rental standards to cover energy efficiency, with a focus on an enforcement standard that does not rely on renter initiative. - Introduce New Accountability Frameworks for Landlords
Implement a mandatory landlord registration system and a Code of Conduct to ensure compliance with rental laws and improve renter protections. - Strengthen Enforcement and Penalties
Continue introducing stronger penalties for landlords and real estate agents who fail to meet minimum standards. Enhance enforcement provisions to ensure compliance and report publicly on progress. - Reform Disclosure Requirements
Require landlords to disclose essential information, including energy efficiency compliance and rental property conditions, at the time of advertising. This empowers renters to make informed decisions before signing a lease. - Introduce “Roadworthys for Rentals”
Mandate professional assessments of rental properties to certify compliance with safety and energy efficiency standards, similar to roadworthy certificates for cars. - Commit to Transparent Reporting on RDRV
Publish data on disputes and compliance outcomes handled by Rental Dispute Resolution Victoria (RDRV), focusing on renter empowerment and resolution quality. - Disincentivise Unjust Evictions
Introduce laws that discourage landlords from weaponising evictions, such as covering renters’ relocation costs when evictions occur without renter fault. - Ban Rent Increases for Non-Compliant Properties
Prohibit rent increases when landlords fail to meet their duties to maintain the property to promote compliance with minimum standards.
These measures will ensure renters have access to safe, secure, and affordable homes—foundational to their health, wellbeing, and financial stability. By reducing the burden of high energy bills and unsafe living conditions, these reforms empower renters to thrive while fostering a fairer and more equitable rental market.
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