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 meant 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
Starting November 2024, 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 Rental Bidding 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.
7. Mandatory Licensing & Training for Real Estate Professionals
Real estate agents must meet new licensing, registration, and professional development (CPD) requirements by November 2026.
THE IMPACT OF MANDATORY LICENSING AND TRAINING FOR REAL ESTATE AGENTS
Investors working with First National Real Estate Neilson Partners Property Managers should ensure they meet these professional standards.
8. Harsher Penalties for Underquoting & Misrepresentation
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.
10. More Efficient VCAT Processes
Reforms will reduce delays at VCAT, making tenancy dispute resolution quicker and more efficient.
THE IMPACT OF A MORE EFFICIENT VCAT PROCESS
Landlords and tenants will benefit from a faster and more structured legal process.
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 your trusted First National Real Estate Neilson Partners Property Manager to stay compliant and maximize your rental returns
✔ Stay informed: These laws will continue evolving, and preparation is key. Subscribe to our blog to stay informed
Need Expert Real Estate Advice? Your Neilson Partners Property Management Team Are Here to Help!
If you have questions about how these legislative changes will impact your property investments, our experienced and friendly team is here to provide you with expert guidance. Contact us today for tailored advice on navigating the evolving rental market.
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