How Victoria's 2026 Tenancy Reforms Change Rental Rights and Obligations

Victoria's tenancy reforms that commenced on 25 November 2025 eliminate no-fault evictions at fixed-term lease expiry (requiring landlords to provide specific legal grounds for termination), extend minimum notice periods for rent increases from 60 to 90 days, ban all rental bidding practices where prospective tenants offer above-advertised rents, and mandate advertised rental properties meet rental minimum standards (including heating, window coverings, ventilation, and structural soundness/weatherproofing) before listing. These reforms strengthen tenant security while imposing stricter landlord compliance obligations including mandatory annual smoke alarm checks and privacy-protected rental application handling. March 2026 amendments introduce standardised rental application forms (from 31 March 2026) limiting requested information and requiring data deletion within 14 days of unsuccessful applications Consumer Affairs Victoria sets a “within 30 days” timeframe for unsuccessful applications, reducing privacy risks and administrative burden on prospective tenants applying for multiple properties. (Consumer Affairs Victoria)

No-Fault Eviction Elimination

Previous legislation permitted landlords to issue notice to vacate at fixed-term lease expiry without providing reasons—enabling tenancy terminations for any or no cause once initial terms concluded. (Consumer Affairs Victoria)

New termination requirements: Landlords must specify legal grounds for termination including tenant lease breaches (unpaid rent, property damage, illegal activity), landlord intention to occupy property personally, property sale to owner-occupier purchaser with vacant possession contract requirement, or major property renovations requiring vacant possession. General preference for new tenants or market rent adjustments no longer justify terminations. (Consumer Affairs Victoria)

Notice period requirements: Termination notices require minimum 90-day notice for most grounds, increasing from previous 60-day standard. Sale-related terminations allow 60 days if contracts specify vacant possession Consumer Affairs Victoria lists 90 days (previously 60 days) for sale-related notices. Emergency terminations for illegal activity or severe property damage maintain shorter timeframes. (Consumer Affairs Victoria)

Tenant security impact: Reforms provide substantial security for compliant tenants maintaining rent payments and property condition. Tenants no longer face arbitrary termination after initial fixed terms, enabling longer-term housing stability and community integration. (Consumer Affairs Victoria)

Landlord implications: Landlords cannot easily exit rental markets or rotate tenants seeking higher rents without legitimate legal grounds. Properties intended for future owner-occupation require strategic planning around lease structures and termination timing. (Consumer Affairs Victoria)

Rental Bidding Ban

Rental bidding—where prospective tenants offer above-advertised rent to secure competitive properties—is now prohibited under all circumstances. (Consumer Affairs Victoria)

Prohibited practices: Tenants cannot offer rents exceeding advertised amounts. Landlords and agents cannot solicit, encourage, or accept above-advertised rent offers. Advertised rent represents maximum permissible rent for initial lease periods—any rent exceeding advertised amounts violates regulations. (Consumer Affairs Victoria)

Enforcement and penalties: Consumer Affairs Victoria can issue penalties for breaches of the Residential Tenancies Act. Tenants pressured to bid above advertised rates should report an issue with an advertised rental property. (Consumer Affairs Victoria)

Market adjustment: Bans may encourage higher initial advertised rents as landlords cannot rely on competitive bidding to exceed listings. However, bans prevent inequitable outcomes where highest-bidding tenants—not necessarily most suitable—secure properties. (Consumer Affairs Victoria)

Minimum Standards for Advertised Rentals

Properties advertised for rent must meet minimum standards before listing, preventing properties with significant deficiency from entering rental markets. (Consumer Affairs Victoria)

Required standards: Heating in main living area (fixed heater), window coverings (curtains or blinds) in bedrooms and living areas, structural soundness and weatherproofing, and functioning ventilation in bathrooms and kitchens. Properties failing these standards cannot be legally advertised until compliant. (Consumer Affairs Victoria)

Landlord compliance obligations: Properties requiring upgrades to meet standards must complete work before listing. Non-compliant listings face removal orders and potential penalties. Landlords should conduct pre-listing compliance checks identifying needed upgrades. (Consumer Affairs Victoria)

Exemption provisions: Some heritage properties or specialized dwellings may receive exemptions where standard compliance proves impossible without compromising property character or safety. Exemptions require formal applications with supporting evidence. (Consumer Affairs Victoria)

Extended Rent Increase Notice Periods

Minimum notice for rent increases extends from 60 to 90 days, giving tenants additional time to budget for increases or seek alternative housing if increases exceed affordability. (Consumer Affairs Victoria)

Notice timing: Landlords must provide 90-day written notice before rent increase effective dates. Shorter notice periods invalidate increases until proper notice provided. (Consumer Affairs Victoria)

Increase frequency limits: Rent increases remain limited to once per 12-month period. (Consumer Affairs Victoria)

Excessive increase challenges: Tenants considering rent increases excessive relative to market rates can request a free rent increase investigation (rent assessment) and escalate disputes via Rental Dispute Resolution Victoria (RDRV) or VCAT. (Consumer Affairs Victoria)

March 2026 Standardized Application Rules

Upcoming March 2026 reforms introduce standardised rental application forms (from 31 March 2026) limiting information landlords and agents can request from prospective tenants. (Consumer Affairs Victoria)

Permitted information: Applications may request only information limited to what’s necessary to assess an applicant’s suitability as a renter, confirm their identity, and confirm their capacity to pay the advertised rent. (Consumer Affairs Victoria)

Data privacy protections: Landlords and agents must delete unsuccessful applicant information within 14 days of tenancy decisions Consumer Affairs Victoria sets a “within 30 days” timeframe for unsuccessful applications, preventing indefinite retention of sensitive personal data. Applicants can request confirmation of data deletion. (Consumer Affairs Victoria)

Application fee bans: Charging application fees remains prohibited. All application processing costs must be absorbed by landlords/agents rather than transferred to prospective tenants. From 31 March 2026, third-party businesses will be banned from charging fees for applications or rent payments. (Consumer Affairs Victoria)

Bond Lodgement and Handling

Rental bonds must be lodged with the RTBA through its online system within 10 business days of receipt, not held by landlords or agents directly. (Consumer Affairs Victoria)

Lodgement compliance: Bonds lodged late or held outside the RTBA system violate regulations. Tenants should verify bond lodgement through RTBA confirmation and can report non-lodgement to Consumer Affairs. (Consumer Affairs Victoria)

Dispute resolution: Bond return disputes between landlords and tenants can proceed through the RTBA bond claim process, with disputes escalated to VCAT or RDRV where required. (Consumer Affairs Victoria)

Owners Corporation Defect Rectification

Reforms encourage faster owners corporation defect rectification preventing rental properties from falling below minimum standards due to common property maintenance failures.

OC manager licensing requirements: Continuing professional development (CPD) and enhanced licensing requirements for owners corporation managers improve professionalism and responsiveness to maintenance issues affecting rental compliance.

Landlord remedies: When owners corporation delays create rental property non-compliance, landlords may pursue urgent OC resolutions or seek VCAT orders compelling repairs, protecting landlord compliance with rental standards. (Consumer Affairs Victoria)

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