Victoria rental property reforms: what landlords & tenants need to know

The Victorian rental market is no longer what it used to be. A series of legislative changes introducing new minimum standards and compliance requirements have made it a more regulated sector, increasing obligations for both rental providers and renters. For many, these changes are influencing broader discussions on renting vs. buying in Australia, as the evolving regulations are prompting people to reassess what long‑term housing stability looks like.

Here is a breakdown of some of the key changes for landlords and tenants based on current reported settings in 2026.

What are rental property reforms in Victoria?

The recent reforms are part of the Victorian Government's broader Housing Statement and include legislative updates designed to strengthen rental protections across the state. The primary purpose here is to provide clearer rental frameworks for both rental providers (landlords) and renters.

By standardising key rental processes, such as how you apply for a flat or how a lease can be ended, the state reforms aim to provide better security of tenure for renters while giving property owners a clearer, more predictable compliance framework.

Overview of recent rental reforms in Victoria

Several notable property rental reforms have come into effect from November 2025 onwards, including:

Ban on no-fault evictions

Perhaps one of the most significant changes is the end of "no-reason" notices to vacate at the end of a fixed term. Owners must now provide a valid, legally recognised reason, such as the owner moving back in or major renovations. All existing at-fault protections remain in full effect, and property owners still retain the right to issue a notice to vacate for a breach of the agreement, including failure to pay rent, property damage, or other breaches of duty.

Extended notice periods

The mandatory notice period for rent increases and most evictions has been extended from 60 days to 90 days. This extra month provides both owners and tenants with a longer lead time to manage financial transitions or plan for future property requirements.

Ban on rental bidding

Rental bidding is now strictly off the table. Properties must be advertised at a fixed price, and agents or owners are legally prohibited from soliciting, encouraging, or even accepting offers above the advertised rent.

Pre-listing minimum standards

Rental properties must meet all Victorian minimum standards (i.e., functional heating, window coverings, and structural safety) before they can be advertised or leased. This requirement aims to ensure that every property is legally compliant from day one, creating a better experience for everyone. For owners, it minimises the risk of future complaints and unexpected repairs, while for tenants, it guarantees a comfortable and secure home from the moment they move in.

Market-aligned rent reviews

The RDRV or VCAT can review rent increases to assess whether they remain consistent with comparable fair market value. While owners may adjust rent to account for higher interest rates or recent tax reforms on rental properties, the framework aims to ensure that these increases align with current market benchmarks rather than exceeding them.

Changes affecting rental properties

If a property doesn't tick every box on the compliance list, it may not be lawfully advertised or leased.

Property standards and minimum requirements

Properties must now meet all minimum standards (including functional heating, secure locks, and weatherproofing) at the time they are advertised, not just by the time the tenant moves in. Listing a non-compliant property may breach current tenancy laws.

Modification, maintenance, and safety rules

Additional requirements have been introduced to improve safety and amenity, including:

• From December 2025, all rental properties must have safety anchors for blind and curtain cords to prevent child entanglement.
• Annual smoke alarm checks are now mandatory for all rental properties, regardless of when the lease began.
• New regulations are phasing in requirements for better insulation, draught-proofing, and energy-efficient systems throughout 2027, beginning with initial mandates on March 1, 2027.

Changes affecting property owners

For property owners, compliance today means active management, specifically regarding how you handle sensitive data and how you communicate financial changes to your tenants.

Compliance and disclosure requirements

Landlords now face tighter rules on data privacy. With the introduction of a standardised rental application form in early 2026, owners and agents can only ask for necessary information and must delete applicant data within a set timeframe if the application is unsuccessful.

Rent increases and notices

When it comes to increasing rent and managing tenancy agreements, owners must adhere to the following rules:

• For all rent increases, owners must provide a minimum of 90 days' written notice using the official prescribed form.
• Rent can generally only be increased once every 12 months. This frequency applies regardless of whether a new lease is signed or the agreement is periodic.
• Owners must provide evidence, like market appraisals, to justify the increase. Renters have the right to challenge this if deemed excessive.

Changes affecting renters

The reforms are intended to provide renters with greater certainty regarding property standards and tenure.

Security, repair, and privacy rights

Renters may now have a right to stay unless they've breached their agreement or the owner has a valid legal reason to move them on. Privacy is also bolstered: routine inspections are now capped at four per year, and there are stricter limits on what personal info agents can request during the application phase.

Notice period and rental agreement updates

If a fixed-term lease ends and neither party takes action, it automatically converts to a periodic, month-to-month agreement. This ensures a tenancy can’t be ended solely because the fixed term has expired, and instead requires a valid ground for ending the agreement.

How rental property reforms impact existing tenancies

Many reforms apply to existing tenancies. For example, the 90-day notice period for rent increases and mandatory annual smoke alarm checks apply to all active leases, even those signed years ago.

For legacy leases (specifically those started before June 2019), some transitional rules apply regarding the frequency of rent increases (6 months vs. 12 months). However, safety standards and eviction rules generally apply across the board to ensure no one is left living in a sub-standard home.

Common misconceptions about Victoria rental property reforms

Stop relying on outdated rental advice. Let’s clear up five common myths currently circulating in the market amidst these reforms.

1. "Landlords can't evict anyone anymore."

Landlords can still evict for valid reasons (unpaid rent, damage, ongoing breaches of duty, or the owner moving back in). They just can't do it for no reason.

2. "I can offer more rent to secure a place I love."

Even if you offer it voluntarily, an agent or landlord is legally barred from accepting more than the advertised price.

3. "Minor standards like blind cords don't apply to my old apartment."

These safety standards apply to all residential rentals, regardless of the age of the building.

4. "Renters can just choose a more efficient home if they want one."

Efficiency features like ceiling insulation are often invisible and not disclosed in listings. Mandatory standards make sure that all homes are up to standard. This transparency also allows owners of well-maintained properties to highlight their home's quality, making it more appealing to prospective renters.

5. "Basic efficiency standards will make housing unaffordable."

Upgrades like draught-sealing and insulation are low-cost but high-impact, enhancing the property’s long-term value, though costs and benefits will vary by property.

Where to find official and up-to-date information

Whether you’re a long-term tenant or exploring a strategy like rentvesting, staying on top of these compliance updates will help protect your financial interests and ensure your home or investment meets modern standards of safety and efficiency.

The rental market moves fast, so it's best to go straight to the source:

• Consumer Affairs Victoria (CAV): The primary regulator for rental laws.
• Rental Dispute Resolution Victoria (RDRV): A new body designed to settle disputes faster than VCAT.
• Tenants Victoria: For independent legal advice and advocacy for renters.

Navigating Your Next Steps

Whether you're a renter reassessing your long-term plans or a prospective investor weighing the new compliance requirements, having a clear strategy is essential. Understanding new reforms is the first step to making an informed decision about your property journey.

A new home in a masterplanned community can be a compelling option for both future owner-occupiers and investors, providing a high-quality, fully compliant asset from the start.

For expert investment management, discover our property management services.

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