Owning a rental in Victoria: what has changed and what is coming
Minimum standards, safety checks, no-fault eviction reforms and the energy efficiency standards from 2027 — and a framework for deciding whether to hold, improve or sell.
Updated October 2026
Owning a rental property in Victoria now involves considerably more than finding a renter and collecting the rent. The rules have changed repeatedly since 2021, more changes are scheduled through to 2030, and the holding costs have risen. For many landlords the question is no longer just “what is it worth?” but “is it still working for me?”
This guide summarises the main obligations as they stand in October 2026, what is coming next, and a framework for deciding whether to hold, improve or sell.
The obligations already in force
Rental minimum standards have applied since 2021, covering basics such as heating, ventilation, window coverings, locks, kitchens, bathrooms, electrical safety and structural soundness. More recent reforms have extended landlords’ obligations considerably:
- From 25 November 2025: no-fault evictions were banned, so notices to vacate now need a valid reason and fixed-term agreements roll over to periodic agreements. Rent increases and certain notices require 90 days’ notice. All rental bidding is banned, properties must meet the minimum standards when advertised, and annual smoke alarm checks are required.
- From 1 December 2025: internal window coverings must have secured cords.
- From 31 March 2026: a prescribed rental application form must be used, with limits on what information can be requested from applicants.
- From 13 October 2026: gas and electrical safety checks every two years apply to all rental properties; landlords and agents must keep records showing the property met the minimum standards before it was advertised or occupied; renters cannot be charged application or rent payment fees; and advance notice and evidence are required before a bond claim.
What is coming: the energy efficiency standards
The Residential Tenancies Amendment (Minimum Energy Efficiency Standards) Regulations 2025 introduce new standards in phases. Many are triggered by a new rental agreement, a move to a periodic agreement, or equipment failing.
| Standard | From | What triggers it |
|---|---|---|
| Heating | 1 March 2027 | When an existing fixed heater fails and cannot be repaired |
| Hot water | 1 March 2027 | When an existing system permanently fails and cannot be repaired |
| Shower heads | 1 March 2027 | New rental agreement or move to a periodic agreement |
| Ceiling insulation | 1 March 2027 | New rental agreement or move to a periodic agreement, where there is no insulation |
| Cooling | 1 March 2027, then 1 July 2030 | From 2027 on a new agreement or system failure; from 2030 for all rentals |
| Draught-proofing | 1 July 2027 | New rental agreement or move to a periodic agreement |
From 1 June 2027, further changes are scheduled, including a cap on lease break fees and new rules on keys and fobs. Consumer Affairs Victoria publishes the detail of each standard, and the requirements for your property depend on what is already installed.
Plan the work, don’t wait for the failure
A heater or hot water system that fails in winter, in a property with a renter in it, will need to be replaced with a compliant system quickly and at whatever price is available. Knowing in advance what each property needs lets you budget, compare quotes and use any available rebates.
The cost side has changed too
Higher interest rates since 2022, increases in Victorian land tax, insurance premiums and the cost of compliance work have all reduced net returns. Federal tax settings changed too. Under laws passed in June 2026, negative gearing on established residential property acquired after 12 May 2026 is limited from 1 July 2027, and the 50% CGT discount is replaced by indexation with a 30% minimum tax for gains from that date. Properties bought before Budget night keep negative gearing until sold — see negative gearing changes explained.
Hold, improve or sell: a framework
- Work out the real return. Net yield after all holding costs, and the cashflow after interest. Our rental yield calculator is a starting point.
- Cost the compliance gap. What will the property need between now and 2030, and when?
- Review the lending. Is the loan competitively priced, and is the structure still right for deductibility?
- Model the after-tax sale. What would you keep after CGT and selling costs, and what could that capital do elsewhere?
- Consider the portfolio. One property in isolation can look marginal while fitting well in the overall plan — or the reverse.
“For a Victorian landlord, compliance is now part of the return. It belongs in the numbers, not in the too-hard basket.”
How we help
Our property management team tracks the obligations for every property we manage, keeps the records the law now requires, and plans upcoming compliance work with owners. Because we are part of a firm that also handles lending and tax, we can put the whole hold-or-sell question in front of you with the after-tax numbers — and if selling is the answer, run the campaign.
Sources
- Consumer Affairs Victoria — New changes to the rental laws (updated October 2026)
- Consumer Affairs Victoria — New minimum energy efficiency standards for rental properties
- Residential Tenancies Amendment (Minimum Energy Efficiency Standards) Regulations 2025 (Vic)
General information
This guide is general information only, current as at October 2026. It is not legal, tax or financial product advice. Rental laws and their commencement dates can change; check the current requirements with Consumer Affairs Victoria or obtain advice before acting.
Full licensing, remuneration and complaints information for each of our divisions is set out under Licensing & disclosures.
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