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(VIC) Extend Rental Protections to Student Accommodation
- Astrid Hickey & Zak Russell
- 20 hours ago
- 7 min read
Author: Astrid Hickey & Zak Russell | Publish date: 3/2/2026
P: In VIC, student accommodation is exempt from standard rental protections.
S: The VIC Minister for Consumer Affairs should repeal Section 21 of the Residential Tenancies Act 1997 (VIC) to remove the exemption that excludes student housing from the rights and protections afforded by the Act.
Problem Identification:
Section 21 of the Residential Tenancies Act 1997 (VIC) (RTA) states that the Act does not apply to rental agreements if the rented premises are ‘used as a school or for education and training purposes’. The exemption also applies to premises supporting the operations of an educational institution, and premises affiliated with, or owned or leased by, an educational institution.
According to the University of Melbourne Student Union (UMSU), this means that ‘student renters living in exempt accommodation cannot access any of the rights and protections provided by rental laws’. They further found that the exemption also means student accommodation providers (SAPs) can write occupation agreements that make continued enrolment, and the ability to graduate or access grades, contingent on rent payment. According to UMSU, these conditions are ‘wholly inappropriate in a rental situation,’ and can have ‘particularly devastating consequences for international students’.
Context:
The RTA is VIC’s primary legislation governing rental building standards, rights, duties, and dispute processes for renters and SAPs. These rights include, for example, the ability to seek dispute resolution from the Victorian Civil and Administrative Tribunal (VCAT), the right to receive a condition report of the rental property before the lease is signed, and the right to urgent repairs.
According to the Student Accommodation Council, VIC hosts 26,000 private purpose-built student accommodation beds: the largest share in Australia.
The Federation of Community Legal Centres VIC (FCLC) has noted that student housing exemptions were introduced ‘before universities became major commercial landlords,’ and therefore ‘undermine and are out of step with Victoria’s renter protections.’
Arguments:
The FCLC has reported that the exemption means that student renters can face ‘inadequate’ living conditions. According to the FCLC, some student renters can face substandard living conditions, such as buildings lacking ‘functional heating, lockable external doors … and adequate ventilation.’ They also stated that renters in exempted accommodation may face excessive rent increases, no-fault evictions, more frequent inspections and behavioural rules that ‘would not be allowed in standard rentals.’
According to UMSU, the exemption of educational accommodation from the RTA means that there are ‘almost no viable legal options for students to resolve disputes in exempt housing.’ WestJustice, a community legal clinic, has noted that without RTA protection, disputes can fall to remedies under Australian Consumer Law, which ‘offers little effective protection’ in housing disputes.
UMSU has highlighted that the exemption means that rental agreements between students and SAPs may feature clauses and conditions that can cause negative impacts for students, such as linking payment of rent to a student’s enrolment record. One case study from UMSU described the case of an international student living in university-owned accommodation. They reported that when he experienced severe financial hardship and asked to end his agreement early to move to somewhere cheaper, he was told that he had no realistic way to exit the contract without risking his enrolment. Isabelle Butler, a senior lawyer at the UMSU legal service, has affirmed that if a rental dispute occurs, students may be ‘threatened with not being allowed to re-enrol’. She further stated that this ‘can have really significant consequences for international students who can have their visas cancelled.’
According to UMSU, the University of Melbourne has stated that it requires agreements between SAPs and students to comply with the RTA. However, UMSU has noted that because of the ‘privity of contract,’ the requirements are ‘impossible for student renters … to enforce.’
Advice/Solution Identification:
UMSU and FCLC have called for the repeal of Section 21 of the VIC RTA to extend rental protections to student accommodation.
UMSU has said that this could help to ‘improve renters’ rights in university-owned and -affiliated accommodation’. Further, the FCLC has stated that ‘renters in student housing should have the same rights as other renters, and universities and their commercial partners should be held to the same standards as other landlords.’
Precedent:
There is domestic precedent for the rights of renters in atypical rentals. In VIC, renters in rooming houses (a building where 4 or more people rent individual rooms, often with shared facilities like kitchens, bathrooms and laundries), are guaranteed minimum standards and rights under Part 3 of the RTA.
Public Support:
Broad Support:
LaTrobe Student Union (Called for full rights to be extended to student renters in Victoria; however, have not explicitly called for the repeal of Section 21 of the RTA)
This list reflects publicly stated positions and should not necessarily be taken as endorsement of this specific brief.
News Coverage:
ABC News - “International students desperate for a bed being pushed into informal housing.” Described licence-style student accommodation arrangements as a “grey area” where operators use non‑tenancy contracts that require students to give up rights, expose them to abrupt eviction and make it harder to recover bond money. By: Miriah Davis | 1 Dec 2025 - Read the article here.
The Age - “Universities use loophole to evade protections for students.” Reported how exemptions in the Residential Tenancies Act 1997 (VIC) are being used by commercial student housing providers to avoid accountability under rental laws. This article forms key background knowledge for the issue. By: Clay Lucas and Nicole Precel | 26 Jun 2023 - Read the article here.
LaTrobe Student Union Media - “LaTrobe Student Union Students demand equal tenancy rights.” Described the problems students can encounter when renting from an educational accommodation provider and calls for LaTrobe University to adopt RTA standards for students living in LaTrobe accommodation. This article provides a good overview of the issue. By LaTrobe Student Union | 14 Feb 2023 - Read the article here.
SBS News - “‘You won’t graduate’: Claims international students are being exploited by housing providers.” Described how students often find themselves in exploitative agreements with their housing provider without any real recourse. This article directly informed arguments 1 and 3. By: Jarni Blakkarly and Leesha McKenny | 23 Mar 2018 - Read the article here.
Where to go to learn more:
(2025) Action For Justice: A Roadmap for Change | FCLC - Document from the FCLC that critiques tenancy law gaps, arguing that it leaves students in exempt housing without minimum standards or dispute mechanisms. Read the full report here.
(2023) Submission to the Inquiry into the rental and housing affordability crisis in VIC | UMSU - Describes the issues that renters in student lodgings face due to the exemption, particularly the lack of legal resolutions, and presents anonymous case studies. Read the full submission here.
(2021) International Student Housing Project Report | WestJustice - Recommends abolishing RTA exemptions for education-affiliated accommodation, documenting insecure tenures and lack of tribunal recourse for international students in exempt arrangements. Read the full report here.
Residential Tenancies Act 1997 (VIC) - Read the full Act here.
Human Perspective:
Eleni is an international student in Melbourne, living in commercial student accommodation affiliated with her university. When her father could no longer support her financially, she fell behind on rent. She tried to end her lease early so she could move somewhere cheaper, but the provider refused and insisted she keep paying the full rent. Her agreement also allowed the university to restrict her re‑enrolment until housing debts were repaid, even though they knew she could not meet the payments. Afraid of losing her place in her course, she began skipping meals and working extra café shifts to raise extra money for rent. Her mental health deteriorated, and she struggled to attend classes and complete her coursework. When she approached the student legal service, Eleni learned that, despite effectively living under a lease like any other renter, she did not have the same legal protections. She was told that if her agreement had been covered by the Residential Tenancies Act, she could have applied to VCAT under Section 91U to end the lease early on the basis of severe hardship. She also could have relied on formal dispute resolution, clear notice periods, and limits on the landlord’s powers. Instead, because her accommodation was exempt, her only option was to argue that the contract was “unfair” under consumer law – an uncertain, slow process unlikely to provide the urgent relief she needed.
To protect the anonymity of those involved, this is a fictionalised account drawn from an amalgamation of real-life stories, experiences and testimonials gathered during the research process for this brief. Any resemblance to actual individuals is purely coincidental.
Conflict of interest/acknowledgment statement:
N/A
Support
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Disclaimers
Please review all FORE disclaimers here.
Reference list:
Blakkarly, J. & McKenny, L. (2018, March 23). ‘You won’t graduate’: Claims international students are being exploited by housing providers. SBS News. https://www.sbs.com.au/news/article/you-wont-graduate-claims-international-students-are-being-exploited-by-housing-providers/tuwszdk04
Davis, M. (2025, Dec 1). International students desperate for a bed being pushed into informal housing. ABC News. https://www.abc.net.au/news/2025-12-01/-international-students-trading-their-rights-for-a-bed/105978146
Federation of Community Legal Centres VIC (FCLC). (2025). Action for Justice: A Roadmap for Change. FCLC. https://assets.nationbuilder.com/fclc/pages/18/attachments/original/1752803818/FCLC_A4J%28210x297mm%29_Web%2820250715%29_FINAL.pdf?1752803818
LaTrobe Student Union. (2023, Feb 14). LaTrobe Student Union Students demand equal tenancy rights. LaTrobe Student Union News. https://www.latrobesu.org.au/news/article/6013/housingrights/
Louth, C. & Huang, S. (2021, Aug). International Student Housing Project Report. WestJustice. https://www.westjustice.org.au/cms_uploads/docs/westjustice_student_accom_web_2.pdf
Lucas, C. & Precel, N. (2023, June 26). Universities use loop hole to evade protections for students. The Age. https://www.theage.com.au/national/victoria/universities-use-loophole-to-evade-renter-protections-for-students-20230317-p5ct0s.html
Residential Tenancies Act 1997 (Vic) https://content.legislation.vic.gov.au/sites/default/files/2025-11/97-109aa111-authorised.pdf
Student Accommodation Council. (2024, Nov). Beyond the Visa Cap: Why Restricting International Students Won’t Solve Australia’s Housing Crisis. Report prepared by Mandala, for Student Accommodation Council. https://www.propertycouncil.com.au/wp-content/uploads/2024/11/SAC-Report-Student-Visa-Caps-Impact-on-Rent-in-Australia-1.pdf
UMSU Legal Service. (2022). Rooming Houses Lived-Experience Project submission. University of Melbourne Student Union.
UMSU Inc. (2023, July 21). Inquiry into the rental and housing affordability crisis in Victoria. Submission by the University of Melbourne Student Union.
UMSU Inc. (2023, Sep 1). Inquiry into the worsening rental crisis in Australia. Submission by the University of Melbourne Student Union.
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