Victoria's peak real estate body may have called the state government's tenancy reforms an "insult" but a former chief executive has thrown his support behind the "much needed" changes.

Announced by Premier Daniel Andrews on Sunday, the sweeping changes include a ban on rental bidding, limits on rent rises and establishing the right of every tenant to have a pet, except in "certain circumstances".

Minor home modifications, such as hooks to hang pictures, would also be allowed.

Enzo Raimondo, the longest serving CEO of the Real Institute of Victoria, says with one-in-four Victorian households renting, the government's reforms are "much needed".

"Tenants who rent should be able to enjoy the premises they rent like anyone else and being able to hang a print or painting or keep a pet should not be the decision of the landlord," he said.

But incumbent institute boss Gil King was critical of the reform, criticising the proposed 'blacklist' for dodgy landlords and agents.

"The proposed Andrew's blacklist database for landlords and estate agents is an insult to our profession," he tweeted on Friday.

"Let's be clear. The new rental laws have less to do with helping tenants and more to do with winning the Northcote by-election."

Census data from 2016 shows 40 per cent of residents in the hotly-contested electorate are renters.