As you would be aware, the Victorian Government has introduced a number of legislative changes with further reforms scheduled to commence later this year and into 2027.
Recent updates have already included rent increase and lease termination notice periods increasing from 60 days to 90 days, requirements for corded blinds to be fitted with compliant safety anchors, and the requirement for rental properties to meet the rental minimum standards before being advertised.
These changes form part of the broader Victorian Government Housing Statement reforms, aimed at improving safety, compliance and housing standards across the rental market.
New changes now in effect from 31 March 2026
• A new standard rental application form must now be used for all applications. This creates a more consistent and streamlined process for prospective renters. Click here to see the new form.
• Rental providers and agents are limited to requesting only the information contained within the new prescribed application form. This ensures information collected is relevant to assessing suitability and confirming identity and financial capacity.
• When assessing rent increases, Consumer Affairs Victoria, Rental Dispute Resolution Victoria and VCAT may now consider additional factors when determining whether a rent increase is excessive.
Commencing 13 October 2026
• Minimum standards compliance records. Owners must retain sufficient records to demonstrate the property met the prescribed minimum standards when it was advertised or offered for rent.
Gas safety check required prior to draughtproofing works with a licensed gasfitter must first confirm the property meets gas ventilation safety requirements within 6 months prior to the works being undertaken.
•All rental properties must have gas and electrical safety checks completed by qualified tradespeople every 2 years, regardless of when the tenancy commenced.
| New Energy Efficiency Standards from March 2027 • New energy efficiency requirements are being introduced aimed at reducing ongoing energy costs. These changes will be phased in from 1 March 2027, giving rental providers time to plan and budget for upgrades. |
| From 1 March 2027 • Heating and hot water systems must be replaced with energy efficient electric systems when existing units need replacing |
| From 1 March 2027 – at the start of a new lease or when an agreement becomes periodic • Install energy efficient fixed cooling in the main living area. • Install ceiling insulation with minimum R 5.0 rating where no insulation currently exists. • Install 4 star rated shower heads (currently 3 star rated is required). |
| From 1 July 2027 – at the start of a new lease or when an agreement becomes periodic • Draughtproof external doors, windows and wall vents to reduce heat loss and improve efficiency. |
| From 1 July 2030 – all rental agreements Energy efficient fixed cooling must be installed in the main living area for all rental properties regardless of lease type. |
| What this means for Owners We recommend reviewing your property to identify any upgrades that may be required. For example, if a property currently has no ceiling insulation, it may be beneficial to install insulation prior to 1 March 2027. After this date, insulation with a minimum rating of R5.0 will be required, along with an electrical safety inspection of the ceiling space before installation. Some upgrades may be more cost effective through the Victorian Energy Upgrades program, which offers discounts and rebates on a range of energy efficient improvements. This can include replacing gas space heaters with reverse cycle air conditioners, upgrading gas hot water systems |
Rental Minimum Standards
Since 2021, rental properties have been required to meet the Minimum Rental Standards by the time a new renter moves and from November 2025 properties must meet all minimum standards before being advertised or offered for lease. Properties that do not meet the required standards can attract penalties exceeding $10,000.
To assist in ensuring your property complies with the Victorian Minimum Rental Standards, we strongly recommend arranging a Minimum Standards Inspection which we can arrange through a trusted third party provider to confirm the property meets the required criteria to be rented in Victoria. The investment for this service is typically $150-$200 and is separate from smoke alarm, electrical and gas safety checks.
With upcoming changes requiring rental providers to retain sufficient records confirming compliance, demand for these reports is expected to increase and having this report available will place you in a strong position when leasing the property to avoid any delays or unexpected costs.
Please confirm in writing at your earliest convenience if you would like us to arrange the inspection. Once approved, we will coordinate the inspection and provide the report for your records.
