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🏠 Victoria Rental Law Update 2026

  • Feb 27
  • 4 min read

What Melbourne Landlords Must Know About the New 90-Day Rules


Victoria’s rental laws continue to evolve under the

Residential Tenancies Act 1997.


From 25 November 2025, major changes took effect — most notably the extension of several notice periods from 60 days to 90 days.


For Melbourne landlords and property investors, these changes significantly impact:

  • Rent increases

  • Selling a tenanted property

  • Owner-occupation notices

  • Major renovation notices

  • Leasing processes



Failure to comply may result in invalid notices or proceedings at the

Victorian Civil and Administrative Tribunal (VCAT).

From 25 November 2025, most Victorian Notice to Vacate periods increased from 60 days to 90 days.
From 25 November 2025, most Victorian Notice to Vacate periods increased from 60 days to 90 days.


1️⃣ Rent Increases – Now 90 Days’ Notice



Under the updated legislation:

  • Rent can still only be increased once every 12 months

  • At least 90 days’ written notice must be provided (previously 60 days)

  • The notice must clearly explain how the increase was calculated



Acceptable methods include:

  • Comparable market rentals

  • CPI adjustments

  • Documented rental analysis



If the calculation method is unclear, renters may challenge the increase at VCAT.


Rent increases in Victoria now require at least 90 days’ written notice and a clear explanation of how the increase was calculated.
Rent increases in Victoria now require at least 90 days’ written notice and a clear explanation of how the increase was calculated.


2️⃣ Sale of Property – 90-Day Notice Period



If issuing a Notice to Vacate due to sale of the property:

  • A lawful reason must exist

  • Supporting evidence may be required

  • The minimum notice period is now 90 days



This generally applies to periodic tenancies.



Fixed-Term Lease Impact


If the renter is still within a fixed-term lease:

  • The lease must generally be honoured until expiry

  • Sale alone does not automatically terminate the lease

  • Early termination requires renter agreement



3️⃣ 6-Month Re-Letting Restriction


Where a Notice to Vacate is issued on sale grounds, Section 91ZZH generally prevents the property from being re-let for 6 months.


Non-compliance may result in penalties.


This is one of the most commonly misunderstood risk areas for landlords.

Rental bidding is prohibited — landlords and agents cannot invite or accept offers above the advertised rent.
Rental bidding is prohibited — landlords and agents cannot invite or accept offers above the advertised rent.


4️⃣ Minimum Rental Standards Remain Strict



All rental properties must comply with Victoria’s minimum standards, including:

  • Fixed heater in the main living area

  • Functioning cooktop

  • Secure external doors and window locks

  • Electrical safety checks every 2 years

  • Gas safety checks every 2 years

  • Annual smoke alarm testing

  • and more


Failure to comply may lead to repair orders or VCAT proceedings.



5️⃣ Urgent Repairs – The $2,500 Rule



If urgent repairs are not addressed promptly:

  • Renters may arrange repairs themselves (up to $2,500)

  • Landlords must reimburse within 7 days


Urgent repairs include:

  • Gas leaks

  • Electrical faults

  • Water service failures

  • Serious leaks

  • Heating breakdowns



Immediate response is essential to mitigate risk.

For most properties (weekly rent ≤ $900), landlords cannot request or accept more than one month’s rent in advance.
For most properties (weekly rent ≤ $900), landlords cannot request or accept more than one month’s rent in advance.


6️⃣ Rental Bidding Ban & Rent-in-Advance Restrictions


Victoria has strengthened leasing fairness rules.


Rental Bidding is Prohibited


Landlords and agents:

  • Must not invite rental offers above the advertised price

  • Must not encourage bidding

  • Must not accept offers higher than the advertised rent


The advertised rent must reflect the actual maximum rental price.


Rent in Advance Limits


For most residential properties (weekly rent ≤ $900):

  • Only one month’s rent in advance may be requested or accepted



Landlords and agents must not accept multiple months’ rent in advance to “secure” a property — even if the renter offers voluntarily.


Properties with weekly rent above $900 may have different limits.


If a Notice to Vacate is issued due to sale, the property is generally restricted from being re-let for 6 months.
If a Notice to Vacate is issued due to sale, the property is generally restricted from being re-let for 6 months.


2026 Compliance Summary for Melbourne Landlords


Victoria is now one of the most renter-protective states in Australia.


Key compliance pillars include:

  • 90-day notice requirements

  • 6-month re-letting restrictions

  • Strict minimum standards

  • Urgent repair reimbursement rules

  • Rental bidding prohibition

  • Rent-in-advance limits



In this regulatory environment, professional property management is not just operational support — it is risk mitigation.


About Core Elite Real Estate


Core Elite Real Estate provides:

  • Legislative compliance management

  • Strategic rent review analysis

  • Sale-of-property tenancy guidance

  • VCAT risk management

  • Full-service property management across Melbourne


If you would like a compliance review of your investment property under the 2026 Victorian rental laws, contact our team today.

Disclaimer

The information contained in this article is provided for general informational purposes only and does not constitute legal, financial, or professional advice.

While reasonable care has been taken to ensure the accuracy and currency of the content at the time of publication, Victorian rental laws and regulations may be amended or updated without notice. Readers should not rely solely on this information when making decisions regarding their rental property.

This article summarises aspects of the Residential Tenancies Act 1997 and related regulatory changes. It does not cover all provisions, exceptions, or individual circumstances.

Each rental situation is unique. Landlords, rental providers, and renters are strongly encouraged to seek independent legal advice or consult a qualified professional before taking action based on the information provided.

Core Elite Real Estate accepts no liability for any loss, damage, or legal consequence arising directly or indirectly from reliance on this content.

Disputes relating to residential tenancies in Victoria may be determined by the Victorian Civil and Administrative Tribunal (VCAT).

All content remains the intellectual property of Core Elite Real Estate unless otherwise stated.


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