Legislation never stands still, and neither can your property management department. Property management legislation changes are starting to roll out in Victoria from November 2025, through March 2026, and into 2027. Other states are following suit. Moving forward requires more than simply meeting compliance requirements. It is about proactive conversations with clients, financial planning, and keeping your team confident through education.
Why Legislation Changes Feel Overwhelming for Agencies
- Every state is making updates which makes it tough for teams to stay on track.
- Investors expect clarity and reassurance, yet often do not budget ahead.
- The financial fallout can be significant. Owners may struggle with surprise costs for upgrades or compliance checks.
Spotlight on Victoria: What’s Changing
November 2025
- No fault evictions (90 day end-of-fixed-term) will be banned
- Use of a prescribed application form
- Fixed-price advertisements only, with no option to accept applications above the listed rent
- Rent in advance capped
- Notice periods for rent increases and notices to vacate extended to 90 days
- Properties cannot be advertised unless they already meet all minimum standards
- All smoke alarms must be tested at least every 12 months, regardless of when the lease began
Stages from Late 2025 Onwards (Energy Efficiency and Safety)
New Energy Efficiency Requirements Effective March 1, 2027
Rental properties will be required to comply with new energy efficiency standards. These requirements apply when a new rental agreement begins or when an existing lease transitions to a month-to-month arrangement.:
- Energy‑efficient heating and hot water systems: When existing systems fail permanently, rental providers must replace them with energy‑efficient versions.
- Ceiling insulation and 4‑star (or better) showerheads: These must be installed where they are missing.
- Energy‑efficient cooling appliances: In the main living area, providers must install either a fixed cooling appliance rated at least 3 stars, or a 2‑star equivalent central cooler. If an existing cooling system is non‑energy efficient, it must be upgraded at its end of life.
From 1 July 2027: Draughtproofing Requirements Begin
At lease commencement or conversion to month‑by‑month, providers must draught‑proof all external doors, windows, and unsealed wall vents.
Rebates Rental providers can access rebates for these required upgrades through the Victorian Energy Upgrades (VEU) program. Notably, ceiling insulation rebates are expected to be available by early 2026.
Cooling Requirements – Phase 1
From 1 March 2027 to 30 June 2030, new rental agreements entered into or created on or after 1 March 2027 must comply with the following:
- The main living area must have an energy-efficient fixed cooler, unless it is unreasonable to install one
- If an energy-efficient cooler is not practical, then at minimum a standard fixed cooler must be installed
Rooming Houses and Safety Standards
- Blind cord safety: From 1 December 2025, all corded internal window coverings in residential rental properties must have a secure anchor to eliminate loose loops and reduce child safety risks.
- Rooming house heating: From 1 December 2025, every resident’s room must include a fixed heater (electric ducted/hydronic heating, or non‑portable electric air conditioner/heat pump of 2 stars or more). From 1 December 2030, heating in these rooms must be energy‑efficient fixed systems meeting higher performance standards.
- Electrical safety checks: Licensed electricians must complete checks every two years.
These changes matter. For instance, having wiring checked during the two‑year safety inspection can prevent owners from paying twice when insulation is due. Planting that cost conversation early helps owners spread spending over time.
Other States Aren’t Standing Still
NSW, QLD, SA and others are also moving on rental reforms. Agencies operating across states must keep a national perspective. Even if you are in just one state, your investors are following headlines nationally. Teams need to be across the bigger picture.
The Real Challenge: Communication and Financial Management
Legislation changes can hurt investor confidence if not handled well.
Key questions your team should be asking:
- Are we communicating early enough with owners?
- Are we offering a financial roadmap, not just deadlines?
- Is the team equipped to explain the “what” and the “why” behind each change with confidence?
Practical Steps for Agencies to Stay Ahead
- Proactive communication plans. Start the conversation before compliance deadlines loom.
- Investor education touchpoints. Use emails, webinars, and one on one check-ins to guide owners.
- Financial forecasting tools. Show owners how to spread upgrade costs and avoid “bill shock.”
- Team training. Help property managers understand the intent behind changes, not just the rules, so they can explain them clearly.
Changing the Conversation from Compliance to Leadership
Thriving agencies will do more than just meet requirements. They will lead investors by providing structure, clarity, and confidence. Property management teams can leverage legislative changes to showcase their value, build trust with owners, and highlight how they contribute to increased income rather than being an expense.
Need Some Help in Understanding These Changes?
Property management legislation changes got you feeling overwhelmed? Reach out to The Rental Network for workshops, tailored training, and communication strategies. Let us help your property management team move from stress to structured, confident leadership, even through constant change.
