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Property Law & Conveyancing

Victoria's 2026 Rental Reforms: What Every Tenant and Landlord Needs to Know

5 April 20269 min readVitt Legal Team

Victoria's rental laws have undergone their most significant overhaul in decades. From longer notice periods for rent increases to enforceable minimum housing standards, the balance between tenant and landlord rights is shifting — and both sides need to understand exactly where they stand.

The Biggest Shake-Up to Victorian Rental Law in a Generation

If you rent in Victoria — or own an investment property here — 2026 is a year you cannot afford to ignore. A wave of amendments to the Residential Tenancies Act 1997 has introduced protections that fundamentally change what tenants can expect and what landlords must deliver. Some of these changes took effect in early 2026; others are being debated in Parliament right now, including a Rent Controls Bill introduced on 1 April 2026. The reforms are not cosmetic. They address the core friction points that have defined the Victorian rental market for years: how much notice you get before a rent increase, what condition a property must be in before it can be advertised, how much personal information a landlord can demand, and how rental bonds work. Whether you are a renter trying to understand your new rights or a landlord navigating new obligations, the legal landscape looks very different from even twelve months ago.

Rent Increases: 90 Days' Notice Is Now the Law

One of the most impactful changes is the extension of the minimum notice period for rent increases from 60 days to 90 days. This applies to all periodic (month-to-month) tenancies and to fixed-term leases where the lease allows for rent increases during the term. The practical effect is significant. Previously, a tenant receiving a rent increase notice had roughly two months to absorb the increase, negotiate, or find alternative housing. Now, that window is three months — enough time to genuinely explore options without being forced into a rushed decision. Importantly, rent can still only be increased once every 12 months, a restriction that has been in place since 2019. If your landlord attempts to increase rent more frequently, or provides fewer than 90 days' notice, the increase is not valid. You are not required to pay it, and you can challenge it through Consumer Affairs Victoria or VCAT. If you believe a rent increase is excessive — above what a comparable property in the area would command — you can apply to VCAT for a review. VCAT can set aside or reduce the increase if it finds the amount is above market rate. This mechanism existed before the 2026 reforms, but the longer notice period gives tenants more time to prepare a challenge.

Minimum Housing Standards: Properties Must Be Fit for Habitation

Victoria has introduced enforceable minimum standards that a rental property must meet before it can be advertised or let. These are not aspirational guidelines — they are legal requirements, and landlords who fail to comply can face penalties and repair orders. The standards cover several areas that have been persistent sources of tenant complaints. Properties must have functioning locks on all external doors and windows that can be opened. They must be structurally sound and weatherproof, with no significant damp or mould caused by building defects. Heating must be available in the main living area — an electric bar heater that heats a two-metre radius does not comply. Bathroom and kitchen facilities must be functional, and the property must have adequate ventilation and natural or artificial lighting. The mould and damp provisions are particularly significant in Melbourne's climate. Landlords cannot simply blame mould on tenant behaviour if the property has inadequate ventilation, leaking windows, or rising damp. If the mould is caused by a structural defect, the landlord is responsible for remediation — not just superficial cleaning. For tenants living in properties that do not meet these standards, the enforcement pathway is straightforward. You can issue a breach notice to your landlord, and if the issue is not rectified within a reasonable period, apply to VCAT for a compliance order or compensation.

Standardised Rental Applications: Limits on What Landlords Can Ask

The days of being asked to hand over bank statements, payslips, references from previous landlords, and a personal essay about why you would make a good tenant are changing. Victoria has introduced standardised rental application forms that limit the type and amount of personal information a landlord or property manager can request. Under the new framework, landlords cannot ask for your bank account balance, your tax returns, your rental history beyond your most recent tenancy, or personal information unrelated to your ability to pay rent and maintain the property. The intent is to level the playing field in a market where tenants — particularly those on lower incomes, new migrants, or people with imperfect rental histories — have historically been pressured into disclosing far more than necessary to compete for a property. This reform also addresses privacy concerns. The more personal data you hand over during an application process, the greater the risk of that data being mishandled, lost, or used for purposes beyond the tenancy. Standardisation reduces that risk by ensuring only relevant information is collected. Landlords and property managers who request prohibited information can be reported to Consumer Affairs Victoria.

Portable Bonds and Centrepay: Reducing the Financial Burden

Two additional reforms target the financial barriers that make moving between rental properties so difficult. First, Victoria is moving toward a portable bond scheme, which allows tenants to transfer their bond from one property to the next without having to fund a second bond while waiting for the first to be returned. Under the current system, moving often means having two bonds tied up simultaneously — a financial burden that can amount to thousands of dollars. Portability means the bond follows you, reducing the upfront cost of moving. Second, from 2 March 2026, landlords must offer Centrepay as a payment option if a tenant requests it. Centrepay is a voluntary bill-paying service that deducts rent directly from Centrelink payments. This change is specifically designed to support tenants receiving government benefits, ensuring they have a reliable and automatic way to meet their rent obligations without the risk of missed payments. For landlords, the Centrepay obligation is straightforward to implement and provides more certainty that rent will be paid on time. The portable bond scheme requires more planning but ultimately benefits the market as a whole by increasing tenant mobility and reducing vacancy periods.

The Rent Controls Debate: What Is Being Proposed

On 1 April 2026, a Rent Controls Bill was introduced in the Victorian Parliament proposing an immediate rent freeze. This is separate from the reforms already in effect — it is a legislative proposal that has not yet been passed. If enacted, it would temporarily prevent landlords from increasing rent at all, regardless of the 90-day notice and 12-month frequency rules. The argument for rent controls is straightforward: Melbourne's rental market is under extraordinary pressure, with vacancy rates at historic lows and median rents rising faster than wages. Proponents argue that without direct intervention, the market will continue to push lower-income tenants out of viable housing. The counterargument is equally well-established: rent controls tend to reduce housing supply over time, as investors exit the market or shift to short-term letting, reducing the number of properties available for long-term tenants. Whether this Bill passes or not, the debate signals the direction of Victorian housing policy. Tenants should understand that the reforms already in place provide substantial protections. Landlords should be prepared for the possibility that further restrictions are coming and should review their portfolios with that risk in mind.

What Should Tenants and Landlords Do Now?

If you are a tenant, the most important thing you can do is understand your rights under the current law. Many of the protections described above are already in effect, and you do not need to wait for further legislative change to enforce them. If your property does not meet minimum standards, if your landlord has not given proper notice of a rent increase, or if you have been asked for prohibited personal information during an application, you have avenues for redress through Consumer Affairs Victoria and VCAT. If you are a landlord or property investor, the 2026 reforms require a compliance review. Ensure your properties meet minimum standards before re-letting, update your lease templates and application forms, confirm your property manager is across the new rules, and factor the 90-day notice period into your financial planning. The cost of non-compliance — in penalties, in VCAT proceedings, and in reputational damage — substantially outweighs the cost of getting ahead of the changes. Whether you are on the renting or landlord side of these reforms, the legal position is more complex than it was a year ago. If you are unsure where you stand, getting specific legal advice tailored to your situation is the most effective step you can take.

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