Are Victoria’s Minimum Rental Standards Really That Bad? What Every Property Investor Should Know
Reading time: 2 minutes 30 seconds
Victoria has often been criticised in the media for being unfriendly to property investors. The state has introduced stricter regulations, including new electrical safety standards and heating requirements in March 2023. Furthermore, as part of the Victorian Government's COVID Debt Repayment Plan, from 2024, property owners with taxable land valued at or above $50,000 ($25,000 for trusts) must pay land tax.
So, what’s the real issue? Should property investors turn their backs on Victoria? Let’s break it down.
Understanding Victoria’s Minimum Rental Standards
Minimum rental standards are designed to ensure that rental properties provide a safe, secure, and comfortable living environment for tenants.
These standards cover 14 key areas: Bathrooms, Electrical safety, Heating, Kitchen, Laundry, Lighting, Locks, Mould and damp, Structural soundness, Toilets, Ventilation, Vermin-proof bins, Window coverings, and Windows.
These requirements ensure rental properties meet fundamental living conditions. Examples include:
A functioning kitchen
Energy-efficient heating in the main living area
Lockable external doors
Mould-free and structurally sound homes
While many rental properties in Victoria already meet these requirements, some still fall short.
A couple of new requirements are required from December 1, 2025.
New window covering requirements - All corded internal window coverings in rental properties must have anchors to prevent hazards.
Rooming houses - Operators must install a fixed heater in each resident’s room.
What’s Required for Regular Compliance Checks?
In addition to structural and safety standards, landlords must meet specific ongoing obligations:
Annual smoke alarm inspections and certification - Approx. $100 per year
Gas and electrical compliance certification - Every two years, costing approximately $400-500 (varies by location)
Are These Standards Really a Burden?
If you take a step back and evaluate these regulations, they primarily aim to enhance tenant safety and comfort. Ask yourself - would you want to live in a home with:
No lockable external doors?
No fixed heater in the living area?
Structural weaknesses and mould problems?
Likely not. Your tenants wouldn’t either. While they might sign a lease out of necessity, they will likely move to a better property as soon as they can. What does that mean for you?
Vacancy costs - A 2-3 week rental gap while finding a new tenant
New leasing fees - Equivalent to roughly one week’s rent for a new lease agreement
In many cases, the cost of maintaining a rental property to meet minimum standards is lower than the financial impact of frequent vacancies and tenant turnover.
The Bigger Picture for Investors
Victoria is setting new benchmarks in rental property standards. If you’re considering investing elsewhere to avoid these regulations, ask yourself - what’s the guarantee that other states and territories won’t implement similar policies?
Regulations evolve over time. Thinking that rental standards will remain unchanged over the next 20 years of your investment journey is both short-sighted and unrealistic. Instead of resisting change, proactive investors should view compliance as a long-term strategy to attract and retain quality tenants.
Useful Resources
Consumer Affairs Victoria - Rental Property Minimum Standards
Consumer Affairs Victoria - New Standards from 1 December 2025
Final Thoughts
Rather than seeing Victoria’s rental standards as a burden, consider them an opportunity to future-proof your investment. A well-maintained property not only meets legal requirements but also attracts stable, long-term tenants - ultimately improving your rental income and asset value.
The real question isn’t whether Victoria’s minimum rental standards are “bad” - it’s whether you can afford to ignore them.
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The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any individual objectives, financial situation or needs. Before acting on this information, Premier Buyers recommends that you consider whether it is appropriate for your circumstances and engage qualified professionals.