From November 2025 Victoria introduces major rental law changes. Other reforms target rent pricing and standards. Rental listings must include a fixed price, and bidding above the listed rent is prohibited. Landlords and agents can no longer encourage higher offers. Also, tenants cannot prepay more than one month’s rent in advance. Agents must ensure properties meet all mandatory health, safety and minimum standards before advertising. The rent-review process is also overhauled: extra factors (like how big the increase is and recent improvements) must be considered when raising rent. In short, properties for rent will need to be up to scratch, and rent hikes more tightly checked.
- 90-day notice to vacate (was 60 days)
- Ban on no-reason evictions
- Fixed rent listings (no bidding above price)
- Max 1 month rent upfront (no multi-month prepayment)
- Mandatory minimum standards for rentals before advertising
- Stricter rent review rules (more factors on increases)
What does this mean for the market?
Many of our clients ask how investors and buyers will react. According to property managers, these reforms may push smaller “mum-and-dad” investors to sell up. With higher compliance costs and tougher eviction rules, some landlords are already listing properties for sale. Fewer investor-held rentals means tighter rental supply and rising rents. Megan Kimpton from Barry Plant notes that “many investors…have been forced…to sell their properties in Victoria”, which is straining vacancy rates. We interpret this as meaning rental prices will climb and rental yields could increase for landlords who hold on.
For buyers (especially investors), this creates mixed signals. On the one hand, stronger demand and higher rents may improve cash flow and long-term gains. On the other hand, these rules add risk: for example, investors can no longer rely on multi-month rent deposits to secure cash flow, and they must account for tenants having more security. We advise clients to watch rental yield trends closely. Rising rents may improve yields, but budgets and stress tests must factor in the new 90-day notice and no-fault eviction ban. Essentially, investors should balance the benefit of higher rents against the risk of stricter regulations and potential future laws.
We see an opportunity for buyers: for example, suburbs with strong rental demand might gain momentum, and savvy buyers can position themselves with the right purchase strategy. Our research shows that long-term housing demand in Victoria is still strong, so acting under a clear plan is key. We at D’MANSHA use tools like rental demand analysis and market research to help buyers navigate these shifts (see our Blogs for detailed market insights).
Navigating the Reforms: Our Advice
As experienced buyer’s agents, we emphasise strategy. First, understand that fewer investors often means stronger competition among renters and potentially faster price growth. We guide our clients through this by analysing data and using our local network. Second, stay flexible: keep an eye on suburb trends and rent growth. We help buyers plan for different situations, including rule changes, so there are no surprises. Third, focus on value: new laws can create short-term chances in the market. At D’MANSHA, we help buyers and investors interpret market changes and secure the right property. If you’re wondering how the new rental rules affect your plans, let’s talk. Call us on 0406 11 22 44 or book a free discovery call.