Significant changes to Victoria's rental laws are reshaping the landscape for both renters and rental providers.
With new reforms now in effect and continuing to roll out through to 2030, these updates aim to strengthen renter protections while improving the quality, energy efficiency, and sustainability of rental homes across the state.
As a rental provider, understanding these changes is essential. Here's what you need to know about the key reforms and how they will impact investment properties.
Already in effect
Residential Dispute Resolution
Victoria (RDRV)
Since June 2025, all rental disputes,
whether about bonds, compensation,
rent increases, or repairs, must first go
through Residential Dispute Resolution
Victoria (RDRV) before escalating to
VCAT (Victorian Civil and Administrative
Tribunal). This free service helps both
parties resolve issues through early
intervention and mutual agreement,
aiming to avoid formal hearings.
Complying with minimum standards
before advertising
Properties must meet minimum
standards before they can be advertised
for rent, ensuring rental homes are safe
and habitable from the outset.
Prohibition of rental bidding
Rental providers and agents can no
longer request or accept offers above
the advertised rent. This ban on
rental bidding creates a fairer, more
transparent process for everyone
involved.
Limits on rent in advance
Rental providers cannot accept
unsolicited offers to pay more than one
month's rent in advance, preventing
renters from feeling pressured to offer
additional upfront payments to secure a
property.
Ban on ‘no-reason/no-fault' evictions
Rental providers need valid reasons to
end a lease at the conclusion of a fixed
term. Acceptable reasons include the
owner or their family moving into the
property, planned demolition or major
renovations, and selling with vacant
possession.
Extended notice periods
Notice periods for rent increases and
vacate notices have extended from 60
to 90 days, allowing renters more time
to plan and adjust.
Right to challenge excessive rent
increases
Renters can now apply to RDRV to
challenge rent increases they believe
are excessive, based on the amount
and frequency of the rise. If unresolved,
these matters can proceed to VCAT.
Annual smoke alarm checks
All rental providers must conduct annual
smoke alarm safety checks, regardless
of when the rental agreement was
established.
Blind and curtain cord safety
All corded internal window coverings
must have anchors installed to
secure cords and prevent loose loops,
protecting children from potential
hazards.
Standardised application forms
A new standard rental application form
has been introduced to streamline and
simplify the application process for both
renters and real estate agents.
Energy efficiency standards: 2027 and beyond
Victoria's most significant reforms focus on energy efficiency, with a phased rollout beginning in March 2027. These standards are designed to improve home comfort, reduce energy bills, and help the state meet its emissions reduction targets.
Ceiling insulation
At the start of a new rental agreement
or conversion to a month-by-month
agreement, rental providers must install
ceiling insulation in spaces where none
exists.
Cooling standards
Energy-efficient cooling must be
installed in the main living area at the
start of new or month-to-month rental
agreements. This includes a minimum
3-star fixed cooling appliance or 2-star
equivalent central cooler. Existing non-
energy-efficient cooling systems must
be upgraded when they reach the end of
their lifespan. From 1 July 2030, all rental
properties must meet these cooling
standards unless exempt.
Heating and hot water
When outdated heating and hot water
systems reach the end of their lifespan,
they must be replaced with energy-
efficient electric alternatives.
Water-efficient showerheads
All showerheads must meet a minimum
4-star water efficiency rating.
Draughtproofing
External doors, windows, and unsealed
wall vents must have weather seals
installed to reduce heat loss and
improve energy efficiency.
What this means for you
These reforms represent a significant shift in Victoria's rental landscape. For renters,
they offer greater security, transparency, and access to more comfortable, energy-
efficient homes. For rental providers, they require proactive planning and investment
to meet new standards but ultimately contribute to higher-quality rental stock and
potentially improved property values.
Navigating legislative change can feel complex, particularly when understanding your specific obligations and rights. If you have questions about what these reforms mean for your property or rental situation, reach out to our Jellis Craig Property Management teams for personalised guidance through this transition.
For detailed information about notice requirements and supporting documentation,
visit consumer.vic.gov.au/housing/renting