Navigating Victoria‘s New Rental Standards: A Guide for Property Investors and Landlords
Victoria‘s rental law is evolving, with stricter standards now in effect to improve the safety, energy efficiency, and general quality of rental homes. For property investors and landlords alike, this means that it‘s now more important than ever to ensure that your investment is in line with the law — or risk costly fines.
At Crest Property Investments, we‘re dedicated to keeping you informed and compliant, and protecting the long-term value of your property.
What‘s Changing?
The Victorian Government has introduced a series of minimum standards that rental properties must meet before a new lease is entered into. These standards will improve living conditions for tenants and address the key areas of:
- Heating: A well-designed fixed heater, to meet energy efficiency criteria, is now compulsory in the main living area.
- Insulation & Draught Proofing: Introductions are being made for ceiling insulation and improved draught protection to be compulsory.
- Safety Checks: Annual compulsory smoke alarm checks, as well as requirements for ventilation, electrical safety, and secure locking.
- Structural Integrity: Weatherproofing, structural soundness, and the absence of damp or mould are needed on properties.
- These are the laws that apply to all rental houses — whether you’re renting a new house or an old house.
What happens if I don’t comply?
Landlords who fail to meet minimum standards can expect massive penalties, including:
- Individuals with fines of over $11,000
- Companies with fines of over $57,000
- Possible court action and enforced emptying until remedial work has been done
- A dedicated compliance taskforce has also been established to conduct inspections and enforce these regulations across the state.
How to Stay Compliant
If you own rental property or are thinking of investing in rental property in Victoria, we recommend you take the following steps:
Check Your Property Now
Conduct a proper inspection or engage a property manager to identify where repairs may be necessary.
Budget for Repairs
Whether it‘s installing insulation or replacing heating systems, forward planning can help spread costs and alleviate stress.
Stay Up to Date
Regulations are constantly changing. Ensure you‘re keeping an eye on updates from Consumer Affairs Victoria or consulting with industry experts.
Get Expert Support
At Crest, we link clients with trusted property managers, tradespeople, and compliance specialists who can assist with upgrades and safety inspections.
Why It Matters for Investors
While these reforms present new challenges, they also present the possibility of making your property more appealing, retaining quality tenants, and protecting your investment in the long term.
When you’re investing in off-the-plan or new property, many of these standards are already built in anyway – so you’ll have less to meet and rent out sooner. That’s one of the many benefits Crest Property Investments considers when purchasing opportunities for our clients.
Need help with traversing the transitions?
Crest Property Investments provides a concierge-level service that takes you from buy to lease — including guidance on Victoria‘s latest rental reforms.
Call us today to discuss your investment goals and how we can help.
Do you want help buying an investment property?
There are many benefits of owning an investment property. At Crest Property Investments, we help source properties for buyers. If you’d like to learn more about buying a property, please don’t hesitate to contact us. We would welcome the opportunity to help with your property purchase. Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to property.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
May 2025
