From November 2025, Victoria will introduce tougher rental rules. Landlords must now give 90 days’ notice (up from 60) and can’t evict tenants without a valid reason. Agents must list only a fixed rent price – all “rent bidding” (offers above asking) is banned. Tenants may pay no more than one month’s rent in advance. Every rental home must meet strict health and safety standards before being advertised. In practice, this means property managers face heavy compliance work and extra rules on rent increases (new factors must justify any rise).
Key changes from Nov 2025:
- 90‑day notice for evictions/rent hikes (vs 60 days).
- Ban on “no reason” eviction notices.
- No rent bidding – listed rent must be a fixed price.
- Tenants capped at 1 month’s rent pre-paid.
- Rentals must meet all minimum standards before listing.
- New rules adding oversight on rent increases.
These reforms protect renters but also squeeze landlords. Many smaller investors (who often bought at higher prices) are now selling up. They’re hit by rising land taxes, compliance costs and these new tenancy rules, so some feel “the risk is bigger than the reward”. Indeed, recent surveys show about 30% of Victorian landlords sold a property this year, citing “rising land tax, new levies and ongoing tenancy reforms” as key reasons. As one industry expert noted, once rentals leave the market, they often stay out, driving vacancy rates down and rents up.
For property buyers and new investors, this has a silver lining. Fewer landlords mean tighter rental supply, which tends to support higher rents and prices. Victoria’s vacancy rate is at historic lows, and rents are at record highs (for example, Melbourne house rents have been ~$580/week for five quarters straight). In other words, competition among renters is strong and rental yields are holding up. At the same time, selling investors may face a more motivated market, giving buyers a chance to pick off deals. A smart buyer’s agent will help you assess rental yield trends and long-term demand under the new rules.
Opportunity for New Investors
- Reduced Competition: As “mum and dad” investors exit, there may be less buying competition, especially if owner-occupiers step in. This can be a chance to negotiate on price.
- Stronger Rental Returns: With fewer rental homes available, rents are likely to keep rising. That can boost long-term returns for the next wave of investors.
- Regulatory Caution: While yields look up, it’s important to understand the new risks. We’ll advise you on how these laws affect cash flow and what happens if you ever switch to renting out a property.
We are here as your buyer’s agents to assist you with these changes. We can help you identify which suburbs are likely to have the best combinations of capital growth and rental possibilities, model the potential for improved yields, and help ensure your investment plans incorporate all compliance risk. Are you ready to move forward? Contact Investmate for personalised advice on your buying strategy – Call +61 421 942 049, or book a free consultation and we’ll guide you through these reforms and secure the best property in the new regulation.