Login
iscover
In the past two years, all Australian states and territories updated rental laws. While some landlords see minimum housing standards as costly and tenant-focused, meeting or exceeding them can boost investment returns amid rising tenant expectations and demand for quality rentals, offering long-term financial and reputational benefits, writes Stuart Clark – national compliance manager for Little Real Estate.
Over the past two years, every state and territory in Australia has changed their rental laws and for some landlords the increasing minimum housing standards has been viewed as a burden. They’ve seen it this way both in terms of extra costs for them and for the changes being perceived as tenant-focused. However, these standards also offer a wide range of benefits for investors, and with the increasing demand for quality rentals and rising tenant expectations, those landlords who choose to align with minimum housing standards and possibly even exceed them can significantly enhance their financial returns.
Here are five key benefits to adhering to these standards:
1. Improved property value
Minimum standards largely involve upgrades to infrastructure such as electrical safety, plumbed facilities, smoke alarms, heating, and insulation. These improvements not only ensure safety and compliance, but also contribute to the overall capital value of the property. Over time, properties that are well-kept and compliant tend to appreciate more than those that are neglected. This benefits landlords, both in terms of resale value and rental yield.
2. Lower risk of legal disputes and fines
Australia’s states and territories are increasingly tightening regulations around rental property standards. Non-compliance can result in legal penalties, including fines or being ordered to carry out urgent repairs. Landlords who proactively maintain their properties in line with minimum standards significantly reduce their risk of costly disputes with tenants and tribunal hearings. Being compliant also simplifies the process of dealing with property inspections and insurance claims.
3. Higher tenant retention and reduced vacancy rates
Properties that meet or exceed minimum housing standards are more attractive to prospective tenants. Tenants are increasingly prioritising homes that are safe, energy-efficient, and comfortable. A well-maintained property is more likely to retain tenants for longer periods and reduce vacancy. Tenants who feel safe and respected in their homes are more likely to respect the property they live in and the landlord.
4. Competitive advantage in the market
As the rental market becomes more competitive, properties that meet or exceed standards stand out. Landlords who invest in compliance are better positioned to attract quality tenants, command higher rents, and reduce vacancy. In contrast, properties that fall short may struggle to attract tenants or require rent reductions to remain appealing while advertised for rent or while works are completed during a tenancy.
5. Easier access to insurance and finance
Properties that are well-maintained and meet safety regulations are viewed more favourably by insurers and lenders. Landlords may find it easier to obtain insurance coverage or property loans, and premiums may be lower. This adds another layer of financial protection and flexibility.
So while minimum housing standards are often framed as a regulatory burden, it’s important for landlords to realise they actually offer substantial advantages, from tenant satisfaction to legal protection, higher rents and capital growth. Complying with these standards is not just a legal obligation – it’s a smart business strategy in Australia’s rental landscape.
Stuart Clark is the national compliance manager for Little Real Estate.
You are not authorised to post comments.
Comments will undergo moderation before they get published.