Victoria’s rental laws have undergone their most significant overhaul in decades.
If you own residential investment property in this state, the rules governing what you can and cannot do have changed substantially, and the consequences of non-compliance are serious. This article sets out your key obligations as a rental provider, reflecting reforms that took effect from November 2025, with further changes already in the pipeline over the next few years.
No-Fault Evictions Are Now Banned.
This is the single biggest shift in Victorian tenancy law. You can no longer issue a notice to vacate simply because a fixed-term lease has ended or because you have decided you want the property back. Every notice to vacate must now be supported by a valid reason.
When a fixed-term agreement expires, it automatically rolls over into a month-to-month arrangement unless both parties agree in writing to a new fixed-term lease, or you issue a valid notice to vacate.
Acceptable grounds for termination include:
✅ Genuine sale of the property (must provide an authority of sale). We can provide this for you.
✅ Major renovations or demolition requiring vacant possession.
✅ The rental provider or an immediate family member moving in.
✅ Renter breach (such as unpaid rent or property damage)
If you cannot demonstrate one of these grounds, you cannot end the tenancy.
Notice Periods Have Been Extended
Where previously a 60-day notice was required for rent increases and certain notices to vacate, the standard notice period is now 90 days. This applies to rent increase notices and notices to vacate in most circumstances. Shorter notice periods continue to apply only where the renter is in breach of the agreement. If you are planning a rent review, build the 90-day timeline into your management calendar well in advance.
Rental Bidding Is Now Prohibited.
You and any agent acting on your behalf are prohibited from:
✅ Accepting rental offers above the advertised price.
✅ Soliciting higher offers from competing applicants.
✅ Accepting more than one month’s rent in advance.
The rent advertised is the maximum rent that can be accepted. If market demand would support a higher figure, that figure should be reflected in the advertised price, not negotiated upward after the price is advertised.
Minimum Standards Must Be Met Before Advertising!
This change catches many rental providers off guard. Previously, minimum standards had to be met before a renter moved in. They must now be met before the property is advertised or opened for inspection.
Advertising a property that does not meet minimum standards is an offence. Your agent must have a reasonable belief that the property complies before any marketing commences.
The 14 minimum standards currently in force cover:
✅ Locks on all external doors and windows.
✅ A fixed heater in the main living area.
✅ An adequate kitchen with a sink, stovetop, and oven.
✅ A functional bathroom and toilet.
✅ Structural soundness and weatherproofing.
✅ Adequate natural light and ventilation in living rooms and bedrooms.
✅ Adequate electrical safety.
Annual Smoke Alarm Safety Checks Are Now Mandatory.
All rental properties, regardless of when the tenancy commenced, must now have an annual smoke alarm safety check conducted and documented. This obligation applies to existing tenancies as well as new agreements. The check must be carried out by a qualified person and must be arranged by you or your property manager. A self-assessment or tenant confirmation is not sufficient.
Blind Cord Safety, New Standard from 1 December 2025.
All internal window coverings with cords must now have secured cord anchors to eliminate dangerous loops. This applies to all rental properties and is not restricted to new installations. If your property has older corded blinds or curtains, these must be retrofitted or replaced.
Rental Applications, Standardised From 31 March 2026.
From 31 March 2026, rental applications must use a prescribed standard form. You and your agent will only be permitted to request information relevant to:
- Assessing the applicant’s suitability as a renter.
- Verifying their identity.
- Assessing their ability to pay rent
Rent Increase Reviews.
Consumer Affairs Victoria and VCAT now have the authority to consider a broader range of factors when assessing whether a proposed rent increase is excessive. If a renter challenges an increase, the process of justifying it has become more rigorous. Rent reviews should be based on verifiable market evidence and documented clearly.
Dispute Resolution.
All disputes relating to bonds, compensation, rent increases, and repairs must now be referred to Residential Dispute Resolution Victoria (RDRV) before proceeding to VCAT. This introduces a mandatory early-resolution step to resolve straightforward disputes without tribunal involvement.
Energy Efficiency Standards, Starting From 1 March 2027
A phased rollout of new energy efficiency standards begins on 1 March 2027. Rental providers will be required to:
✅ Install ceiling insulation in areas of the property that currently lack it to meet minimum insulation requirements.
✅ Install energy-efficient cooling in the main living area at the commencement of any new or month-to-month agreement, a minimum 3-star fixed cooling appliance or equivalent 2-star central cooling unit.
✅ Upgrade non-energy-efficient appliances (heating and hot water) when existing systems reach the end of their serviceable lifespans.
What You Should Do Now
The compliance burden now sits firmly with the rental provider. Ignorance of the reforms is not a defence. We recommend the following actions:
✅ Audit your property against the current 14 minimum standards before any re-letting or advertising.
✅ Brief your property manager on the no-fault eviction ban and confirm they understand valid grounds for notices to vacate.
✅ Update your rent review calendar to reflect 90-day notice requirements.
✅ Confirm your smoke alarm check is scheduled and documented.
✅ Check all window coverings for compliance with new cord safety requirements.
If you would like a property-specific compliance review or have questions about how these changes affect your portfolio,
contact our team at Industry Insider Property at Level 3/489 Toorak Road, Toorak.
Andrew Date, Founder and Senior Buyer and Seller Advisor.
0402 346 810
