Recent Changes in Rental Legislation in Victoria

Victoria has recently introduced significant reforms to its rental laws, aimed at (according to the legislators) creating a fairer and more secure environment for renters. These changes, passed by the Victorian Parliament, reflect the state government's stated commitment to strengthening renters' rights and addressing the challenges faced by tenants in the current housing market.

These changes were passed by Parliament in March 2025, with a large majority of the changes taking effect from November 2025.

In this article, we outline the key updates and their implications for both renters and landlords.

Key Reforms in Rental Legislation

Banning Rental Bidding

One of the most notable changes is the prohibition of rental bidding. Rental providers and real estate agents are now barred from encouraging or accepting offers above the advertised rental price. This ensures that all prospective tenants have an equal opportunity to secure a property without being outbid by others. Advertisements must now include a fixed price, and price ranges are no longer permitted.

Extended Notice Periods

The notice period for rental increases and notices to vacate (for all non-urgent matters) has been extended from 60 to 90 days. This change provides tenants with additional time to plan and adjust to changes in their living arrangements, offering greater stability and peace of mind.

Ban on No-Fault Evictions

Landlords can no longer evict tenants without a valid reason, meaning that even if the fixed-term lease is ending, the landlord must provide an alternate reason to evict the tenant from the property. This reform eliminates "no-fault" evictions, the aim being that tenants cannot be removed from their homes arbitrarily. If a new lease is not offered, the existing lease will continue to operate on the same terms until it is either validly terminated or renewed.

Evictions are, of course, still permitted for reasons such as property damage, non-payment of rent, or if the landlord intends to move back into the property.

Standardised Rental Applications

Applying for a rental property is set to become a more transparent and straightforward process. A new standardised application form will be introduced, aiming to increase consistency and fairness. Additionally, real estate agents must adhere to strict privacy requirements when handling renters' personal information.

Prohibition of Fees for Rental Applications and Payments

It is now illegal for renters to be charged fees by rent technology platforms when applying for a property or paying rent. This reform aims to reduce the financial burden on tenants and ensure that they only pay the agreed rental amount.

Minimum Standards for Rental Properties

Rental properties must meet 14 minimum standards at the time they are advertised, not just when tenants move in. These standards cover essential aspects such as safety, liveability and comfort, ensuring that all rental properties are fit for habitation.

Below is a breakdown of these 14 minimum standards:

• Locks and Security: All external doors must have functioning deadlocks, and windows must have secure locks.

• Heating: A fixed heater must be installed in the main living area of the property.

• Window Coverings: Windows in bedrooms and living areas must have coverings, such as curtains or blinds to provide privacy and to block light.

• Kitchen Facilities: The property must have a functioning sink, stovetop, and oven.

• Bathroom Facilities: The bathroom must include a functioning toilet, washbasin, and shower or bath.

• Laundry Facilities: If laundry facilities are provided, they must be in good working order.

• Structural Soundness: The property must be structurally sound, with no major defects or safety hazards.

• Mould and Dampness: The property must be free from mould and dampness.

• Ventilation: The property must have adequate ventilation, including windows that can be opened or other ventilation systems.

• Lighting: All rooms must have adequate lighting, including natural light where possible.

• Electricity and Gas: The property must have safe and functioning electrical and gas systems.

• Water Supply: The property must have a continuous supply of hot and cold water.

• Smoke Alarms: Smoke alarms must be installed and maintained in working condition.

• Safety of Common Areas: For multi-unit properties, common areas must be safe and well-maintained.

Annual Smoke Alarm Testing

To enhance safety, annual smoke alarm checks are now mandatory for all rental properties. Landlords are responsible for ensuring that smoke alarms are installed and maintained in working condition.

Energy Efficiency and Safety Standards

From 1 March 2027, new energy efficiency standards will be phased in for rental properties. These include requirements for energy-efficient heating, cooling, hot water systems, ceiling insulation, and draughtproofing. The aim is to reduce energy costs for tenants, improve comfort, and to reduce emissions. Rebates will be available to landlords for making these upgrades.

Additional Reforms on the Horizon

Rental Dispute Resolution Victoria (RDRV)

A new body, Rental Dispute Resolution Victoria, will be established with the aim of providing a faster, fairer, and less formal process for resolving rental disputes. This initiative is expected to commence in late 2025.

Portable Rental Bond Scheme

A portable rental bond scheme will allow tenants to transfer their bond from one property to another, easing the financial and logistical strain of moving.

Blind Cord Safety Standards

From 1 December 2025, all corded internal window coverings in rental properties must have safety anchors installed to prevent accidents involving children.

Implications for Landlords and Tenants

While these reforms are a significant step forward for renters, they also introduce new responsibilities for landlords. For instance, landlords must ensure compliance with the new 14 minimum standards, energy efficiency requirements and safety regulations. Real estate agents and property managers will also need to undertake mandatory training and licensing to maintain their registration.

On the other hand, tenants will benefit from greater security, transparency, and fairness in their rental agreements and application processes. These changes aim to strike a balance between protecting renters' rights and maintaining a viable rental market.

Conclusion

The recent changes to Victoria's rental legislation mark a transformative period for the state's housing market. By addressing long-standing issues such as rental bidding, no-fault evictions, and inadequate property standards, the government is hoping that these reforms will create a more equitable and sustainable rental system. Both landlords and tenants should familiarise themselves with these updates to ensure compliance and to make the most of the opportunities they present.

Whether you are a landlord or a tenant, for further information or assistance with navigating these changes, feel free to contact our team at Andrews Crosthwaite on 03 9450 9400. We are here to help you understand your rights and responsibilities under the new laws.