NEW VICTORIAN RENTAL REFORMS – 25 November 2025 commencement date

Table of Contents

The Victorian Government has introduced significant changes to rental laws through the Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill 2024. Set to take effect in November 2025, these reforms will reshape the rental market, with key implications for landlords, rental providers, and investors.

Here’s what you need to know about the upcoming changes and how they may affect your investment strategy.

Note: The Bill commencement date is 25 November 2025, or earlier by proclamation

Key Changes Under the Housing Statement Reform Bill 2024

1. End of ‘No Reason’ Notices to Vacate
From November 25, 2025, landlords will no longer be able to issue a ‘no reason’ notice to vacate at the end of a fixed-term lease. This means rental providers must provide a valid reason for eviction, such as the owner moving in, major renovations, or selling the property with vacant possession.

THE IMPACT OF END OF NO REASON EVICTIONS

Investors will need to carefully plan lease terminations and ensure compliance with new eviction rules.

2. Stricter Rent Increase Criteria
Rent increases will face tighter scrutiny from Consumer Affairs Victoria (CAV) and the Victorian Civil and Administrative Tribunal (VCAT). This will mean that rental providers must justify rent hikes based on property improvements, comparable market rates, or specific allowable reasons.

THE IMPACT OF STRICTER RENT INCREASE CRITERIA

Rental increases will need to be backed by clear evidence, making market research and property upgrades more critical.

3. Extended Notice Periods
The required notice period for rent increases and eviction notices will increase from 60 to 90 days.

THE IMPACT OF EXTENDED NOTICE PERIODS

Investors must allow more time when making rental adjustments or ending tenancy agreements.

4. Minimum Rental Standards Compliance
all rental properties must meet minimum rental standards before being advertised. This includes safety, heating, insulation, and structural requirements.

THE IMPACT OF MINIMUM RENTAL STANDARDS COMPLIANCE

Landlords should conduct property assessments and make necessary upgrades in advance to remain compliant.

5. Ban on higher rental offers and Payment Fees
Rental bidding, where tenants offer above the advertised rent will be completely banned. Additionally, fees for rent payments via specific methods will be prohibited.

THE IMPACT OF RENTAL BIDDING AND PAYMENT FEE BANS

Rental providers must strictly follow advertised pricing and cannot accept offers above the listed rental amount.

6. Stronger Protections for Tenant Data
New rental application data protections will restrict what personal information landlords and agents can request and store.

THE IMPACT OF TENANT DATA PROTECTION

Rental providers must adhere to prescribed standard forms and improve data security practices.

8. Harsher Penalties for Underquoting & Misrepresentation on selling your investments
The maximum fine for underquoting property prices and misleading sales practices will increase to $47,422 (240 penalty units).

THE IMPACT OF HARSHER PENALTIES FOR UNDERQUOTING

Landlords selling investment properties must be transparent about pricing to avoid hefty fines.

9. New Rental Dispute Resolution Victoria (RDRV)
A dedicated dispute resolution body will be created to handle rental disagreements outside of VCAT.

THE IMPACT OF NEW RENTAL DISPUTE RESOLUTION

This will streamline conflict resolution between rental providers and tenants.

How Landlords & Investors Should Prepare

The above reforms significantly alter the rental landscape, making it crucial for rental providers to adapt their strategies.

Here’s what you can do:

✔ Review lease agreements: Ensure your lease agreement aligns with the new laws

✔ Plan property upgrades: Keep up to date with property maintenance and meet compliance standards

✔ Reassess rent increase strategies: Make sure you and your Property Manager do your market research when looking to increase rent

✔ Work with a knowledgeable property manager: Work with us to stay compliant and maximise your rental returns

✔ Stay informed: These laws will continue evolving, and preparation is key.

Need Help?

If you have questions about how these legislative changes will impact your property investments, our team is here to provide you with guidance.
Contact us today for tailored advice on navigating the evolving rental market.

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Nikki Gervasi | Real Estate Agency in Melbourne | Nicole Gervasi Property Group

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FAQs

There are different ways to value a property, including an agent appraisal, a bank valuation and other automated valuations.

We use many different data points to estimate a value.

We analyse a whole suite including;

  • property type (i.e. house, townhouse, strata title etc)
  • land size and location
  • comparable sales (i.e. similar homes that have sold nearby)
  • market trends, current and historical
  • property characteristics, such as the number of bedrooms, bathrooms, garages, and the size of the property’s footprint.

We also overlay data from government bodies and other sources – pinpointing the value of a home by looking at all of its components – land plus building.

Rather than look at what season to sell it, there are other major factors that drive property values up and down.

  • Supply and demand in the current property market (Your current property market)
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  • The state of the economy

When selling your home, there are various approaches to consider that can help you maximize both the speed of sale and the sale price. One method is selling off-market, where interested buyers and investors are invited to view the property and make an offer before it’s publicly listed for sale. While this approach can be advantageous in some cases, it’s important to also consider the potential downsides before deciding if it’s right for you.

We aim to secure a good tenant for the property as soon as possible. In our experience, a well presented, well priced property will go relatively quickly. Factors such as rental vacancies in the area, property features, owner expectations, condition of the property, presentation and price will all contribute to the time a property is on the market.

We begin by verifying the applicant’s identity through a 100-point ID check and request rental references from their current agents or landlords to assess their history as tenants. Employment checks are conducted to confirm their financial stability and ability to meet rental payments. Additionally, we perform a detailed search to ensure they have no history of payment defaults, tenancy disputes, or property damage.

During our routine inspections we compile a detailed inspection 3D full HD walk through that also includes photographs outlining the condition of the property and note any preventative maintenance that is required and any damages that have occurred. You will receive one of these every six (6) months. We always update our owners on how the tenants have treated/cared for the property throughout their tenancy when it comes to lease renewal. Maintenance that has been addressed at a property will be inspected and we discuss with our tradesman to ensure that all work completed has been completed to a high standard.

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