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Can I sublet or list it short-term?

40 quoted answers, each with its source

The short answer

Victorian renters must ask the rental provider for written permission to sub-let, and the provider must not unreasonably withhold consent or charge a fee; in public housing the provider can refuse permission because subletting would be unfair to others waiting. If someone sub-lets without permission, the rental provider can end the agreement or give a 14-day notice to vacate, and a provider who asks for an additional fee for consent faces a fine of 60 penalty units. A head renter who sub-lets takes on the rental provider's responsibilities, must advise a prospective sub-renter if they are not the owner, must lodge any bond with the RTBA within 10 business days, and any subletting agreement signed after 29 March 2021 is subject to minimum standards. For a sub-renter to be protected, the arrangement requires exclusive possession of some or all of the property and the landlord's written consent or a VCAT order; in 2016 a Supreme Court case held renters breached their agreement by renting on Airbnb, reversing a VCAT decision that it was a licence not a sublease, although one 2016 source said landlords could not rely on the RTA subletting provisions to evict Airbnb-listing tenants.

Every part of this comes from the quotes below. How we write these.

What the rules actually say20

Quoted straight from Consumer Affairs Victoria, the Residential Tenancies Act or a tribunal.

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Consumer Affairs Victoria states that Victorian renters must ask for written permission from the rental provider to sub-let.

first-party
1 quote from 1 source
Renters must ask for written permission from the rental provider to sub-let.
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Consumer Affairs Victoria states that Victorian rental providers must give permission to sub-let unless there is a good reason not to do so.

first-party
1 quote from 1 source
Rental providers must give permission to sub-let, unless there is a good reason not to do so.
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Consumer Affairs Victoria states that a Victorian rental provider cannot charge a fee for giving permission to sub-let.

first-party
1 quote from 1 source
They cannot charge a fee for giving permission.
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Consumer Affairs Victoria states that rental providers can refuse permission for people in public housing to sub-let.

first-party
1 quote from 1 source
Rental providers can refuse permission for people in public housing to sub-let because it would be unfair to other people who are waiting for public housing.
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Consumer Affairs Victoria states that if someone sub-lets a Victorian rental property without permission, the rental provider can ask any of the people living at the property to leave within 14 days.

first-party
1 quote from 1 source
If someone sub-lets without permission, the rental provider can end the rental agreement. They can ask any of the people living at the property to leave within 14 days.
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Consumer Affairs Victoria states that a Victorian head renter takes on all the responsibilities of a rental provider towards their sub-letting renter.

first-party
1 quote from 1 source
The head renter takes on all the responsibilities of a rental provider to their sub-letting renter. All conditions in the head renter’s rental agreement with their own rental providers must be applied to the agreement between the head renter and sub-renter.
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Consumer Affairs Victoria states that a Victorian head renter who takes a bond from a sub-renter must lodge it with the Residential Tenancies Bond Authority within 10 business days.

first-party
1 quote from 1 source
Head renters can ask the sub-renter to pay a bond. The head renter must lodge the bond with the Residential Tenancies Bond Authority (RTBA) within 10 business days.
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Any Victorian subletting under an agreement signed after 29 March 2021 is subject to minimum standards.

first-party
1 quote from 1 source
For example, minimum standards apply to any sub-letting agreements signed after 29 March 2021. This applies even where the original lease agreement was signed by the head renter before that date. If the property requires work to meet the minimum standards, the head renter should discuss the associated costs with the rental provider.
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Tenants Victoria states that for a sublet in Victoria to be legally valid the sub-renter usually needs exclusive possession over part or all of the rental property.

1 quote from 1 source
In some subletting arrangements, you may rent parts of the home; in others, you may rent the entire home because the head renter does not live at the property. Whichever the case, for a sublet to be legally valid, a sub-renter usually needs ‘exclusive possession’ over part or all of the rental property.
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Tenants Victoria states that exclusive possession is not clearly defined in Victorian rental law.

1 quote from 1 source
Exclusive possession is not clearly defined, but it is often associated with having sole use and control over a particular space to the exclusion of all others, including the landlord and head renter.
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Tenants Victoria states that a Victorian head renter is required to tell a prospective sub-renter whether they have the landlord’s permission to sublet.

1 quote from 1 source
A head renter is required to tell you whether they have the landlord’s permission to sublet to you, or an order from VCAT allowing the subletting arrangement.
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Tenants Victoria states that a person needs exclusive possession of some or all of the rental property to be…

  • considered a subletting arrangement.
  • protected by Victoria’s rental laws as a sub-renter.
1 quote from 1 source
To be considered a subletting arrangement, and for you to be protected by Victoria’s rental laws as a sub-renter, you need to have ‘exclusive possession’ of some or all of the rental property.
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Tenants Victoria states that to legally sublet in Victoria the head renter needs the landlord’s consent in writing or an order from VCAT.

1 quote from 1 source
Even if you can show exclusive possession, to legally sublet to you the head renter needs the landlord’s consent in writing or an order from VCAT.
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Tenants Victoria states that it does not give advice to Victorian renters who wish to create a subletting arrangement and become a head renter.

1 quote from 1 source
Tenants Victoria does not give advice to renters who wish to create a subletting arrangement and become a head renter, as this would mean providing advice to someone who is acting as a landlord.
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For subletting, a reasonable amount of time for a Victorian landlord to decide on a lease transfer request is generally around one week after the initial request.

1 quote from 1 source
A ‘reasonable’ amount of time for making a decision is generally around one week after making the initial request, and then a few days if any further information is requested.
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Victoria Legal Aid states that a fine of 60 penalty units applies if a Victorian rental provider asks for an additional fee for giving consent to sub-let the property.

1 quote from 1 source
A fine of 60 penalty units applies if the rental provider asks for an additional fee for giving consent to sub-let the property.
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Victoria Legal Aid states that a Victorian rental provider can serve a 14-day notice to vacate if the property is sub-let without their permission.

1 quote from 1 source
Head renters must have their rental provider's written consent to sub-let a rented property. The rental provider can serve a 14-day notice to vacate if the property is sub-let without their permission.
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Victoria Legal Aid states that a Victorian rental provider must not unreasonably withhold consent to a request to sub-let.

1 quote from 1 source
A rental provider must not unreasonably withhold consent to a request to sub-let. It may be reasonable for a rental provider to withhold consent if the sub-renter does not have a good rental history or if they do not have regular income.
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Victoria Legal Aid states that when a Victorian rental property is sub-let, the owner of the property is no longer the rental provider.

1 quote from 1 source
When rental property is sub-let, the owner of the property is no longer the rental provider. The head renter takes on this role.

Practical effect4

What is observed to happen in practice, as distinct from what is documented.

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Tenants Victoria reports that in practice the cost a Victorian renter is charged for a lease transfer is usually around $120.

1 quote from 1 source
What is reasonable depends on the situation and the work involved. While in practice, the cost is usually around $120, you should ask what work was done to justify the charge.
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Tenants Victoria reports that a VCAT hearing about a Victorian lease transfer may take 2 or more weeks to be scheduled.

1 quote from 1 source
However, you should only do this if you know that the proposed new renter is able to remain available until the hearing happens. A VCAT hearing may take 2 or more weeks to be scheduled.
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In subletting, a Victorian sub-renter who needs repairs…

  • reports the problem to the head renter rather than the landlord.
  • would generally claim compensation against the head renter.
1 quote from 1 source
For example, if you are the sub-renter and notice that repairs are needed at the property, you report this to the head renter, not the landlord. It is then up to the head renter to arrange with the landlord to get the repairs done. If the repairs are not done, and you want to make a claim for compensation or take further action, you will generally make the claim against the head renter, rather than the landlord.

Changed on6

A dated change. This is where advice quietly stops being true.

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Any Victorian subletting under an agreement signed after 29 March 2021 is subject to minimum standards even if the original lease was signed before that date.

first-party
1 quote from 1 source
For example, minimum standards apply to any sub-letting agreements signed after 29 March 2021. This applies even where the original lease agreement was signed by the head renter before that date. If the property requires work to meet the minimum standards, the head renter should discuss the associated costs with the rental provider.
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  • A Victorian head renter who is subletting must advise a prospective renter if that head renter is not the owner of the property.
  • The obligation for a Victorian head renter who is subletting to advise a prospective renter if that head renter is not the owner of the property applies from 29 March 2021.
1 quote from 1 source
From 29 March 2021 a rental provider (and this includes a head-renter who is sub-letting) must advise a prospective renter if they are not the owner of the property they are renting out.
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A Supreme Court case occurred on 10 June 2016.

1 quote from 1 source
A Supreme Court case, on June 10 2016, held that renters had breached their agreement when they rented out their property on Airbnb.
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Victoria Legal Aid states that the…

  • Supreme Court Airbnb ruling reversed an earlier VCAT decision.
  • earlier VCAT decision held that renting out a Victorian rental property through Airbnb was a licence, not a sub-lease.
2 quotes from 1 source
A Supreme Court case, on June 10 2016, held that renters had breached their agreement when they rented out their property on Airbnb.
This reverses a VCAT decision earlier that year, which found that renting out a rental property through Airbnb was a licence, not a sub-lease.

Disputed between sources2

Sources that do not agree, presented without picking a winner.

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  • LegalVision states that a landlord cannot rely on the Residential Tenancies Act subletting provisions to evict an Airbnb-listing tenant.
  • Victoria Legal Aid states that a Supreme Court case held that renters had breached their agreement when they rented out their property on Airbnb.
vendor
2 quotes from 2 sources
The VCAT decision means that landlords should be careful about trying to evict tenants who list their properties on Airbnb, on the basis that they do not have permission to sub-lease. As the matter currently stands, you cannot rely on the provisions in the RTA which prohibit subletting without consent.
A Supreme Court case, on June 10 2016, held that renters had breached their agreement when they rented out their property on Airbnb.

Often said, but we could not find it in the rules8

Lots of people say this. We went looking for an official source that backs it up and could not find one, so treat it as something people repeat rather than something settled.

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Property Managers Melbourne asserted that…

  • VCAT ruled the rooms used as an Airbnb were a licensing issue.
  • VCAT ruled the rooms used as an Airbnb were not a sublease.
  • the reason for VCAT's ruling was that the Airbnb guests did not have exclusive use of the property.
medium confidencevendor
1 quote from 1 source
This case was heard at the Supreme Court of Victoria after the Victorian Civil and Administrative Tribunal (VCAT) had ruled in favour of the tenants. VCAT had decided that the rooms used as an Airbnb were a licensing issue and not a sublease. This ruling was concluded because the Airbnb guests did not have exclusive use of the property.
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Property Managers Melbourne asserts that…

  • in Victoria over 30,000 Airbnb stays are available.
  • hosts of the Airbnb stays can average $5,200 per year.
medium confidencevendor
1 quote from 1 source
In Victoria, over 30,000 Airbnb stays are available, and the hosts of these listings can average $5,200 per year.
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Nelson Alexander asserts that the law surrounding sub-leasing in Victoria is clear.

medium confidencevendor
1 quote from 1 source
At the moment, the law surrounding sub-leasing is clear.
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LegalVision asserts that landlords cannot rely on the Residential Tenancies Act provisions prohibiting subletting without consent when trying to evict tenants who list their properties on Airbnb.

vendor
1 quote from 1 source
The VCAT decision means that landlords should be careful about trying to evict tenants who list their properties on Airbnb, on the basis that they do not have permission to sub-lease. As the matter currently stands, you cannot rely on the provisions in the RTA which prohibit subletting without consent.
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LegalVision asserts, regarding subletting, that Victorian tenants are able to let others stay on the premises short-term and charge a fee, as long as it is not a sub-lease.

vendor
1 quote from 1 source
The VCAT decision has been considered good news for tenants wanting to earn some extra cash through Airbnb. Tenants are able to let others stay on the premises short-term and charge a fee, as long as it is not a sub-lease.