Victoria Rental Reforms Are Reshaping the Property Market in 2025?

What Are the Victoria Rental Property Reforms?

The Victoria Rental Property Reforms are new laws and regulations for rental properties in Victoria. They cover areas like:

RenThere are two main reasons tenants may need a rental recommendation letter:

• Eviction rules and notice periods: Updated processes and minimum notice periods for ending tenancies to provide greater security for tenants.
• Rent bidding and rent increases: Clearer rules to prevent rent bidding and regulate how and when rent can be increased.
• Safety and minimum standards: Mandatory health, safety, and amenity standards that all rental properties must meet.
• Professionalization and registration of agents: New rules requiring property managers and agents to meet professional and registration standards.
• Dispute resolution processes: Improved systems to resolve disputes between tenants, landlords, and agents more quickly and fairly.

The reforms are intended to protect tenants, improve property standards, and hold landlords and agents accountable. Some rules take effect immediately on 25 November 2025, while others, like energy-efficiency upgrades, will be phased in over several years.

Timeline of Implementation

This timeline helps renters and landlords plan ahead.

Key Features of the Victoria Rental Property Reforms

1. Longer Notice Periods: Notice for rent increases and notices to vacate will increase from 60 days to 90 days, giving tenants more time to plan financially or make alternative arrangements.
2. Ban on “No-Cause” Evictions: Landlords will no longer be able to evict tenants without a valid reason. Reasons for eviction must now include things like major renovations, selling the property, or genuine business needs, providing tenants with greater security.
3. Ending Rental Bidding: All forms of rental bidding are banned. Landlords and agents cannot accept offers above the advertised rent, helping to curb inflated rents and promote fairness.
4. Standard Rental Application: A new standard application form will be introduced. Agents can only collect certain types of information and must delete the data of unsuccessful applicants within a set timeframe.
5. No Fees for Rent-Tech Platforms: Tenants will no longer be charged extra fees for using rental platforms or apps to apply or pay rent.
6. Professionalisation and Registration: Real estate agents, property managers, and owners-corporation managers will need to be registered and complete ongoing professional development. Penalties for misconduct have been significantly increased.
7. Safety & Minimum Standards: Annual smoke alarm checks will be mandatory for all rental properties. Properties must meet minimum standards at the time of advertisement. Energy-efficiency upgrades, including insulation, draught-proofing, efficient heating, and low-flow showerheads, are being phased in. Gas and electrical safety checks will be required every two years.
8. Dispute Resolution Reform: A new Rental Dispute Resolution service will provide a fast, free, and informal mechanism for resolving tenancy disputes without going to the tribunal.
9. Portable Rental Bond Scheme: Tenants can carry their bond from one property to another, reducing the financial burden of moving homes.
10. Evidence-Based Rent Increases: Rent increases must now be supported by market comparables or genuine property improvements, preventing arbitrary or excessive hikes.

Why These Reforms Are Being Introduced?

1. Addressing Power Imbalance: Correcting unequal bargaining power between renters and landlords.
2. Improving Housing Quality: Raising safety, maintenance, and energy-efficiency standards for better living conditions.
3. Cost of Living & Affordability: Energy-efficient rentals help reduce utility bills.
4. Streamlining Dispute Resolution: Providing a faster, more accessible alternative to tribunals.
5. Consumer Protection & Transparency: Standardized applications, privacy protections, and restrictions on misleading advertising empower tenants.
6. Regulatory Accountability: Registration and higher fines encourage compliance in the rental industry.

Challenges & Criticisms

1. Financial Burden on Landlords: Some landlords may face high costs for energy-efficiency upgrades and compliance.
2. Market Impact: Concerns exist that some landlords may leave the rental market, affecting supply.
3. Affordability Concerns: While reforms strengthen protections, rent control is not part of the changes, leaving ongoing affordability issues.
4. Implementation Complexity: Phased-in standards and safety checks, such as gas inspections, may complicate compliance.

What This Means for Renters & Landlords?

For Renters:

1. Greater security: Longer notice periods and protections against no-cause evictions.
2. Reduced costs: Energy-efficiency upgrades help lower utility bills.
3. Simpler application process: Standardized forms and improved privacy protections.
4. Faster dispute resolution: Access to a quick, free, and informal dispute resolution service.

For Landlords / Property Managers:

1. Compliance with new standards: Including safety checks and energy-efficiency requirements.
2. Mandatory registration & training: Ongoing professional development will be required.
3. Restrictions on rental bidding: Rent increases must be justified with evidence.
4. Investment in upgrades: Improvements required over time, with phased compliance.

Property managers in Victoria can stay compliant using advanced tools like RentAAA’s property management platform.

Conclusion

The Victoria rental property reforms are reshaping the state’s housing market in fundamental ways. While they introduce higher expectations for landlords, they also deliver improved living conditions for renters and create a more transparent rental ecosystem. As 2025 progresses, both tenants and investors are learning to navigate a market that prioritises safety, quality, and long-term rental stability.

Staying informed and staying compliant will be essential for anyone involved in Victoria’s rental sector moving forward.

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