Recent changes to Victoria’s rental legislation that have now come into effect, along with important upcoming requirements that may impact your investment property.
Recent Legislative Changes (Effective Now)
The Victorian Government has introduced further reforms aimed at reducing costs for renters and strengthening protections around rental processes and pricing.
Key updates include:
Standardised Rental Applications
All rental providers and agents must now use a prescribed application form. This is designed to streamline the application process for renters. Importantly, we are only permitted to request information outlined in this form, meaning certain questions, including those relating to owning pets, can no longer be asked at point of leasing.
Restrictions on Information Requests
The information collected must be limited strictly to what is required to assess an applicant’s suitability and their capacity to pay rent.
Ban on Certain Fees
Rental application platforms and rent payment systems can no longer charge fees to renters for submitting applications or paying rent. While these platforms can still be used, it is now an offence for providers to pass these costs onto renters. Nicole Gervasi does not use these platforms.
Rent Increase Oversight
Additional powers have been granted to regulatory bodies to assess whether proposed rent increases are excessive, with broader factors now considered in these decisions. We are noticing tenant boards encouraging tenants to contest and seek reviews if rents are above the current CPI issued. Simply bringing rents up to market value is still problimatic. We recommend maintaining regular, incremental rent increases each year. We understand the intention behind keeping rent unchanged to keep a great tenant; however, implementing modest, consistent increases over time can help avoid the need for more significant adjustments in the future, which may be harder to achieve under current guidelines.
Upcoming Changes from 13 October 2026.
1. Strengthened Bond Claims
At the end of a rental agreement, rental providers must notify renters in advance if they intend to make a claim on the bond. This notification must include supporting evidence for any claim made.
2. Record Keeping for Minimum Standards Compliance
Rental providers are now required to maintain adequate records demonstrating that their property met the prescribed minimum standards at the time it was advertised or offered for rent.
3. Mandatory Gas and Electrical Safety Checks
All rental properties must undergo gas and electrical safety checks every two years, regardless of when the rental agreement commenced. There are no exemptions, these checks must be conducted by qualified and licensed tradespeople.
4. Gas Safety Check Prior to Draughtproofing
Before undertaking any draughtproofing works, a gas safety check must be completed within the preceding 6 months by a licensed or registered gasfitter to ensure ventilation safety requirements are met.
5. Ban on Rental Application Fees
It will be an offence for rental providers or agents to charge prospective renters any fees in connection with submitting a rental application. Things like tenant transfer fees may be passed onto owners instead of tenants.
Upcoming Changes 1 March 2027 – Heating & Cooling Requirements
In addition to the above, further changes are on the horizon that may require forward planning:
Gas Heating Transition (From 2027)
If an existing gas heater fails and cannot be repaired, it must be replaced with an energy-efficient electric system (typically a reverse-cycle air conditioner).
While repairs to existing systems are still allowed, replacement with gas will no longer be permitted once systems reach end of life.
New Cooling Requirements
All rental properties will be required to have fixed cooling in the main living area at the start of a new lease. Reverse-cycle systems are expected to be the most practical solution, as they provide both heating and cooling. There are government grants in play which we can guide you to.
Along with phased in requirements on Showerheads, Ceiling insulation & Hot water systems. More on this closer to date.
As your managing agent, we will continue to guide you through these changes and assist in ensuring your property remains compliant. Some actions, such as arranging safety checks if you do you manage your own, may require your attention.
Please do not hesitate to contact our office or any of our staff directly if you would like to discuss how these changes may affect your property.