More than 38,500 landlords have applied to VCAT or the Rental Dispute Resolution Victoria across 12 months, due to an issue with their tenants. Picture: David Caird.
More than 38,500 desperate Victorian landlords have resorted to taking legal or dispute resolution action against their tenants in the past 12 months.
Experts have labelled this a “red alert” and are calling for a formal investigation into Victoria’s “broken” rental system following the state government’s 150-plus industry reforms, since 2021.
The figures include 20,214 rental providers who have applied to the Victorian Civil and Administrative Tribunal seeking to enforce a notice to vacate their tenants, between May 2025 and April 2026.
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Victorian landlords can issue a notice to vacate for reasons such as a tenant being 14 days or more behind on rent, or causing serious property damage.
An additional 4877 landlords sought a VCAT ruling on bonds and compensation, repairs, compliance or other matters.
As well, the state government-funded Rental Dispute Resolution Victoria had 13,256 cases lodged by rental providers, mostly relating to bonds and compensation.
Property Investors Council of Australia (PICA) chair Ben Kingsley said the total 38,573 landlord applications to VCAT and the RDRV equated to an average 105 such cases per day, across a year.
More 20,000 rental providers have applied to the Victorian Civil and Administrative Tribunal seeking to enforce a notice to vacate their tenants, since April 2025.
Property Investors Council of Australia chair Ben Kingsley is urging the Victorian government to launch an investigation into the state’s rental system.
“This is a red alert that the rental property market reforms have broken the market,” Mr Kingsley said.
“This needs a formal investigation because it is clear that this is an unsustainable situation.”
The landlord cases could potentially be costing the Jacinta Allan-led government tens of millions of dollars in administration and operation costs, he noted.
Mr Kingsley added that PICA had seen in “a significant increase in the number of property owners reaching out to us in complete frustration and disarray” when their tenants stopped paying rent for months on end, only to be put on several consecutive payment plans by VCAT or appeal each notice to vacate their landlord issued.
Melbourne-based Metro Property Management director Leah Calnan says it’s difficult and confusing for Victorian landlords to pursue their tenants for rental arrears.
The Victorian Government, currently led by Premier Jacinta Allan, has introduced more than 150 rental reforms since 2020. Picture: NewsWire/David Crosling.
Melbourne-based Metro Property Management director and former Real Estate Institute of Victoria president Leah Calnan said it was “almost impossible” for Victorian property investors to recoup rental arrears, although some landlord insurance policies covered up to 20 weeks’ loss of rent.
Ms Calnan said most renters who owed tens of thousands of dollars in rent were unlikely to have the financial means to pay it back.
In addition, she said the “often confusing” process to recover unpaid rent involved an investor or property manager registering a VCAT repayment order through the Magistrates’ Court.
They then have to engage a debt collector to chase down their former tenant.
“A debt collector would normally take about 30 per cent of any funds that they collected but you need to know the whereabouts of that said renter,” Ms Calnan said.
Melbourne landlord Dan Yeats was left more than $65,000 out of pocket when his ex-tenants damaged his South Morang townhouse, and left it in such a bad state that it required deep cleaning.
Property management firm Image Property Melbourne director, Rebecca Carson, said there was a “real gap between having a legal right to compensation and successfully enforcing it”.
“In many cases, rental providers absorb the loss,” Ms Carson said.
“The cost, time, and uncertainty involved can outweigh the amount owed, which discourages them from pursuing recovery.”
She noted that Victorian property managers themselves were required to navigate constantly-evolving state government legislation, which managing highly sensitive and often emotional conversations with both rental providers and renters “frequently in situations where there is no straightforward, timely, or mutually satisfactory resolution”.
If a Victorian renter does not leave a property by the termination date in a notice to vacate, the rental provider can apply to VCAT for an eviction or possession order.
“Too often, legislation changes are framed around tenants alone, but behind many investment property is usually a mum or dad who saved hard, took a risk, and relies on that rental income to cover a mortgage, not turn a profit,” Ms Carson added.
“These aren’t corporate rental providers with bottomless pockets, they’re everyday Australians quietly absorbing rising costs, compliance burdens, and tightening regulations with very little acknowledgment.
“When rental providers are pushed too far, everyone loses, including the renters who need those properties to stay on the market.”
Victorian landlords can apply to VCAT for a notice to vacate their tenants for a variety of reasons, including serious property damage. Picture: Chrissy Harris.
Melbourne landlord Dan Yeats was left more than $65,000 out of pocket after pursuing his now ex-tenants, who significantly damaged his South Morang townhouse, through 13 VCAT hearings.
Mr Yeats has started two petitions appealing for the state government to give landlords immediate possession rights of a home once a fixed-term lease expires and the tenant is in rental arrears.
A Victorian government spokesperson said: “We’ve made renting fairer and safer for all Victorians with our nation-leading rental laws, protecting the interests of both Victorian renters and rental providers.”
“Consumer Affairs Victoria provides free information and resources for renters and rental providers. Anyone with concerns is encouraged to contact CAV for advice.”
Mr Yeats’ petitions can be signed at the Parliament of Victoria homepage and change.org.
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