What Are Victoria's Rental Law Changes Between 2025 and 2027, and What Do Melbourne Apartment Owners Need to Do?

Victoria's rental laws are undergoing staged reforms through 2025–2027, tightening minimum property standards, notice period requirements, and rent increase rules. Melbourne apartment owners—particularly those leasing in the CBD, Docklands, and Southbank—must meet updated compliance obligations before listing a property, or risk penalties under the Residential Tenancies Act 1997 (Vic). Renters gain stronger protections around habitability, safety, and notice. Both parties benefit from understanding exactly what has changed and when.

Key Changes to Minimum Standards for Victorian Rental Properties

Victoria's minimum standards—introduced progressively since 2021—continue to be enforced more strictly from 2025 onward under the Victorian rental minimum standards framework. Rental properties must now meet requirements across several categories:

Heating: A fixed heater in the main living area is mandatory under the heating standard requirements. Portable heaters do not comply. (Note: the Act requires a fixed heater; specific temperature outputs such as 18°C are guidance-based rather than explicitly legislated.)

Ventilation and mould: Exhaust fans must be present and functional in bathrooms and kitchens as outlined in the ventilation standards. Landlords are responsible for addressing mould caused by structural issues—a common concern in older Southbank and Docklands apartment towers.

Electrical safety: Properties must meet electrical safety standards for rental properties, including regular safety checks and appropriate circuit protection. Smoke alarms must comply with Victorian fire safety requirements.

Locks and security: External doors must have functioning locks in line with the security requirements. In high-rise CBD buildings, this extends to common-area access compliance where applicable.

From 2025, Consumer Affairs Victoria’s compliance and enforcement approach has placed greater emphasis on proactive inspections, and VCAT continues to apply minimum standards strictly in rental dispute hearings.

Rent Increase Rules: What Melbourne Landlords and Renters Need to Know in 2026

Under current Victorian law, rent can only be increased once every 12 months per tenancy agreement, as set out in the rules for rent increases. Landlords must provide a minimum of 60 days' written notice before any rent increase takes effect. This applies to both fixed-term and periodic leases.

There is no legislated cap on the percentage increase, but renters can challenge increases they consider excessive through VCAT rent dispute processes. In practice, inner-city apartment rents in 2025–2026 have tracked closely with vacancy rates (market figures indicative; for official data see the ABS housing statistics), making compliance with notice rules especially important given tenant mobility in that market.

Notice Periods for Ending a Tenancy in Victoria

Notice requirements differ depending on who is ending the tenancy and why, as defined under the notice to vacate provisions:

• Landlord ending a fixed-term lease (no grounds): 90 days' notice, and only at the end of a fixed term.
• Landlord — sale of property: 60 days' notice.
• Renter ending a periodic agreement: 28 days' notice.
• Family violence provisions: Renters may end a tenancy immediately under specific circumstances with supporting documentation under the family violence protections.

Victoria abolished “no-reason” evictions during periodic tenancies as part of reforms to the Residential Tenancies Act 1997 (Vic). This remains in force. A landlord cannot end an ongoing tenancy without a prescribed reason under the Act.

Practical Compliance Steps Before Leasing a Melbourne Apartment

Before listing an apartment for rent in Melbourne, owners should work through the following:

1. Confirm the fixed heater meets current compliance requirements and has been serviced.
2. Test all smoke alarms and ensure compliance with Victorian safety standards.
3. Verify electrical safety checks have been completed in line with legal obligations.
4. Check bathroom and kitchen exhaust fans are operational.
5. Ensure all locks on external doors comply with minimum standards.
6. Prepare a condition report as required under the condition report rules.

Where accessibility upgrades are needed—such as safer entryways, bathroom modifications, or mobility improvements—working with specialists in accessible home modifications can help ensure the property meets both compliance and tenant needs.

Failure to meet these standards before the tenancy begins can result in compliance notices, reduced enforceability of lease terms, and orders through VCAT.

How a Property Management Specialist Can Help

Forge Real Estate, which operates across Melbourne's inner-city apartment market, provides a pre-leasing compliance review that maps a property against current Victorian minimum standards before it is listed. The process includes coordinating safety checks, preparing condition report documentation, and advising on leasing timelines where remediation work is required. For investors managing older CBD or Docklands stock, this type of structured compliance check reduces the risk of disputes and delays at the start of a tenancy—particularly relevant as enforcement activity increases through 2025–2026.

Forge Real Estate Melbourne can help you blueprint your future by finding the perfect blue-chip property where your lifestyle needs and investment goals converge.

📞 Phone: (03) 91003633

✉️ Email: info@forgeproperty.com.au

🌐 Website: www.forgerealestate.com.au

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