What changes for Victorian renters and landlords this week

3 days ago 5

Victoria’s new rental and housing rules are now in force, reshaping how properties are leased, advertised and managed across the state.


Victoria has entered a new phase of housing reform as sweeping rental, safety and property rules began this week, reshaping how homes will be advertised, leased and managed across the state.

A typical $1.8m property with $750,000 in land value and $45,000 in annual short-stay income, and left empty for more than six months, would now face $18,000 in Vacant Residential Land Tax from January, $3,725 in land tax and $3,375 in short-stay levies, bringing the total yearly hit to $25,100.

RELATED: New Vic auction rule will legalise underquoting

Inside Australia’s wild pancake chain war

Melb crime wave hits city’s home price growth hopes

Consumer Affairs Minister Nick Staikos said Tuesday’s reforms close the last remaining pathway for rental bidding.

“By closing this loophole we are stamping out rental bidding and putting dishonest and opportunistic estate agents and rental providers on notice.”

Tenants Victoria chief executive Jennifer Beveridge said the changes would “end the auction-style pressure” renters have faced at inspections.

Property Investor Council of Australia board member Ben Kingsley said the rapid reform timeline had left many owners feeling sidelined.

REIV chief executive Toby Balazs said the pace of change meant compliance requirements had “become a significant challenge” for property managers.

Below is every rule change taking effect from 25 November and all reforms that begin after that.

Who Owns Melb

New statewide housing reforms are tightening rental standards and compliance requirements for owners and agents. Picture: David Crosling


Rental bidding banned

Agents and landlords are no longer allowed to accept offers above the advertised rent.

All rental listings must show a single fixed price.

The ban eliminates the bidding wars that previously pushed renters beyond budget limits.

Ms Beveridge said renters would inspect properties “without fear the home will be leased for more than they can afford”.

No-fault evictions scrapped

Landlords cannot remove a tenant at the end of a lease unless they have a valid reason, such as selling the property, completing major renovations or needing the home for themselves or a family member.

At the end of a fixed-term agreement, tenants automatically move onto a month-to-month lease unless a new fixed term is signed.

Mr Kingsley said the change had unsettled many rental providers who felt “shut-out of the discussion”.

Ninety-day notice for rent rises

Rent rises now require 90 days written notice, increasing from 60 days.

This gives renters more time to prepare for changes and improves cost transparency.

Minimum standards must be met before advertising

PREMIER JACINTA ALLAN

Premier Jacinta Allan has overseen a major reset of Victoria’s rental and housing laws taking effect from late November. Picture: NewsWire/Josie Hayden


Rental homes must now comply with Victoria’s minimum standards before being advertised.

This includes:

– working heating

– safe electrical systems

– secure locks

– weatherproofing

– appropriate ventilation

– functioning kitchen and bathroom facilities

– basic structural integrity

Previously, owners could list a non-compliant property and fix issues after a tenant moved in.

That loophole is now closed.

Mandatory annual smoke alarm checks also now apply statewide.

Mr Balazs said the compliance burden had become “significant” across large rental portfolios.

Gas and electrical safety checks now universal

All rental agreements must comply with current gas and electrical safety regulations.

Safety checks must occur every two years.

Stronger privacy protections

Agents and landlords face penalties for mishandling or disclosing tenant information, including applications, ID documents and references.

Changes from 1 December 2025

REAL ESTATE GENERICS NORTH MELBOURNE

The latest reforms introduce stricter protections for renters and tougher obligations for Victorian property owners. Picture: NewsWire/Andrew Henshaw


Blind-cord safety laws begin

From December 1, all blind and curtain cords in rental properties must be anchored or fitted with approved safety devices to prevent loops.

Older cords must be upgraded immediately to meet the new standard.

Changes to come in 2026

Vacant Residential Land Tax goes statewide

SYDNEY RENTAL QUEUES

Renters attending inspections will now be covered by new rules banning rental bidding and enforcing minimum property standards. Picture: NCA NewsWire/Flavio Brancaleone


From January 1, the Vacant Residential Land Tax will extend to unimproved residential land in metropolitan Melbourne that has remained undeveloped for five years or more.

The expansion is designed to target long-term land banking and encourage development of idle blocks.

A vacant $1.2m home would face a $12,000 bill in year one.

Holiday homes remain exempt only if used for at least twenty-eight days each year by the owner or a close relative.

Portable rental bonds introduced

A new RTBA-managed system will allow renters to transfer their bond from one property to the next, preventing double-bond payments during a move.

Additional reporting by Nathan Mawby


Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.

MORE: Melb shopping centre opens amid retail chaos

Paying double: Melb hidden home costs exposed

Food blogger lists sweet $6.5m+ Melb pad

david.bonaddio@news.com.au

Read Entire Article