Victorian Rental Rule Changes from 25 November 2025

What Residential Rental Providers Need to Know

From 25 November 2025, Victoria is rolling out another round of rental changes that affect investment properties.

If it feels like the rental laws are constantly being “updated”, you’re not imagining it. The legislation gets tweaked so often it’s a bit like a teenager with their phone – it never really gets put down.

The overall aim is to give renters more certainty, protection and energy-efficient homes.(Victorian Government) For well-maintained, well-managed properties with a solid relationship between owner, agent and renter, the day-to-day impact should be manageable. The bigger shift is in how carefully you’ll need to plan leases, rent reviews, selling decisions and future compliance.

Who Will Feel These Changes the Most?

Most of the new rules tighten up:

• How and when you can end a tenancy

• How rent increases are handled and justified

• What condition the property must be in before it’s advertised

• How renter information is collected, stored and used

• How disputes are resolved (with a new dispute resolution service)

For owners who’ve always taken a “set and forget” approach, this is a wake-up call. For owners working with a process-driven property manager who stays on top of compliance, it’s more about fine-tuning than panic.

One key unintended consequence:
Because it’s getting harder to end a tenancy (even for legitimate reasons like moving in or selling with vacant possession), owners and agents will become even more cautious about who they approve in the first place.

That means:

• Tighter renter selection

• More planning around lease terms if you might sell or move in

• Potentially tougher competition for first-time or lower-income renters

Advertised Rent: No More “Best Offer” or Quiet Rent Bumping

A clear one: rental bidding is being banned. Owners and agents cannot accept rent above the advertised price, and properties must be marketed with a fixed rent, not a “range” or “from” price.(Herald Sun)

In practical terms:

• You set the asking rent upfront

• You can reduce the rent or accept a lower offer

• You cannot accept higher than what’s advertised

The obvious risk? Some owners may start listing slightly higher to avoid underpricing, then adjust down if they don’t get interest. If enough people do this, it can push advertised rents up – even though the intent of the law is to protect renters.

This is exactly where we help our rental providers: by pricing in line with the actual market, not emotions or headlines.

New Minimum Energy Efficiency Standards (From 1 March 2027 Onwards)

On top of existing minimum standards, Victoria is introducing staged energy efficiency upgrades for rentals. These start from 1 March 2027 and roll out over several years.(Energy)

Key areas:

1. Heating & Hot Water

From 1 March 2027:

• When an existing heating or hot water system permanently fails, it must be replaced with an energy-efficient system (typically efficient electric).

• This is part of the broader move away from old, inefficient gas systems.

2. Insulation & Shower Heads

From 1 March 2027, at the start of a new rental agreement or when it rolls to month-to-month, rental providers must ensure:

• Ceiling insulation is installed where there is currently none

• 4-star (or better) shower heads are fitted

3. Cooling in the Main Living Area

Cooling becomes a minimum standard in stages:(Energy)

• From 1 March 2027: new or renewed agreements must have energy-efficient cooling (e.g. split system) in the main living area.

• By 1 July 2030 (or 2027 depending on final commencement details in the Regulations and updates): all rental properties will need compliant cooling in the main living area, regardless of when the lease started, unless a specific exemption applies.

4. Draughtproofing

From 1 July 2027, at the start of a new lease or conversion to periodic, rental providers must ensure:

• External doors and windows are draught-sealed, and

• Unsealed wall vents are appropriately treated in line with the regulations.(REIV)

These changes won’t all hit at once, but they do require forward planning and budgeting. Leaving it to the last minute will only make it more stressful and costly.

Applications, Privacy and Renter Data

Victoria is tightening the rules on what information can be requested in rental applications and how it must be stored, with a focus on protecting renters’ privacy and reducing unnecessary data collection.(Herald Sun)

We’re expecting:

• A more standardised approach to application forms

• Limits on overly intrusive questions

• Clearer obligations on secure storage and use of information

At McNeill Real Estate, we already treat renter applications with the same care we’d want for our own details – collecting what we need for proper screening, not a file full of “just in case” information.

Disputes: RRV, VCAT and “Reasonable and Proportionate” Outcomes

In the background, we’re seeing a more renter-friendly approach in how disputes are decided. VCAT must make decisions that are “reasonable and proportionate”, which gives Members discretion to look at the broader circumstances, not just the black-and-white text of the Act.(Herald Sun)

On top of that, a new dispute resolution service – Rental Dispute Resolution Victoria (RDRV) – is now operating as a free, early-resolution option for rent increases, repairs, bonds and compensation disputes.(Consumer Affairs Victoria)

What that means for you:

• More matters will be handled via mediation and negotiation before getting to a hearing

• There’s more emphasis on process, communication and documentation from your property manager

• Poor processes or incomplete records can really count against an owner

This is why tight systems, clear notes and compliance-first management aren’t a “nice to have” anymore – they’re essential.

Summary of Key Changes from 25 November 2025

Here’s a quick, plain English snapshot of the main reforms taking effect from 25 November 2025:

1. No more “no reason” notices to vacate

   • You can’t end a tenancy at the end of the initial fixed term without a valid reason (e.g. you’re moving in, major renovations, selling with vacant possession).

2. Longer notice periods (60 → 90 days)

   • Notice for rent increases and most notices to vacate increases from 60 days to 90 days.

   • This affects how far ahead you need to plan changes.

3. Rent increases must be evidence-based

   • Increases need to be supported by market evidence, comparable rentals or genuine property improvements.

   • Expect more scrutiny where increases are above market.

4. Ban on rental bidding

   • You cannot accept offers above the advertised rent.

   • The price you list is the price you’re allowed to accept (you can always go lower, not higher).

5. No extra fees for rent payment methods

   • Renters can’t be charged surcharges or “tech fees” for paying rent by certain methods (e.g. credit card, BPAY, rent apps).

6. Minimum standards before you advertise

   • Properties must meet minimum rental standards (including safety checks, basic heating and structural requirements) before they’re listed for lease.

   • New energy-efficiency standards (insulation, cooling, hot water, draughtproofing) will phase in from 1 March 2027.

7. Stronger protection for renter information

   • Clearer limits on what you can ask in an application and tougher expectations on how that data is stored and used.

8. New rental dispute resolution pathway

   • Rental Dispute Resolution Victoria (RDRV) offers an early, free resolution process before VCAT, particularly around rent increases, repairs, bonds and compensation.

Consumer Affairs Victoria has also made it very clear: there is a crackdown on non-compliant, substandard properties, with significant fines for owners and agencies who lease properties that don’t meet minimum standards or skip required safety checks.(Consumer Affairs Victoria)

How We’re Handling This at McNeill Real Estate

Here’s what we’re focusing on with our rental providers:

• Tighter renter selection – to reduce the risk of difficult terminations later

• Lease strategy – aligning lease terms with any future plans to sell or move in

• Proactive compliance – checking minimum standards early, not when the property is already vacant

• Forward planning for upgrades – mapping out likely energy-efficiency works between now and 2030

• Detailed records & communication – so if a matter ends up at RDRV or VCAT, you’re properly protected

If you’d like us to review your current rental, your lease dates and your likely upgrade requirements under the new standards, we can walk you through it step by step – in plain language, with no scare tactics.