Victoria Rent Increase Rules: What Rental Providers Need to Know

Governed by the Residential Tenancies Act 1997 (Vic), which commenced 1 July 1998, Victoria's rent increase rules were further strengthened on 25 November 2025, requiring 90 days' notice under s.44 and imposing stricter scrutiny on the justification for increases. While there is no hard cap on the amount, renters can challenge excessive increases through Consumer Affairs Victoria and VCAT.

Key Rent Increase Rules

Notice Requirements

90-Day Written Notice

From 25 November 2025, rental providers must give renters at least 90 days' written notice of a proposed rent increase (previously 60 days). The notice must:

• Be in writing using the prescribed Consumer Affairs Victoria (CAV) form
• Specify the new rent amount
• State the date the increase takes effect
• Be served at least 90 days before the increase date

Fixed-Term Agreements Rent

cannot be increased during a fixed-term agreement unless:

• The rental agreement contains a specific clause detailing how the increase will be calculated
• The method of calculation is clearly stated (e.g., percentage increase, CPI-linked)
• Vague terms like "market rent" without a defined process may not be enforceable

Long-Term Agreements (5+ Years)

For long-term rental agreements exceeding 5 years:

• Rent can only be increased once every 12 months
• The agreement must explicitly state that increases are permitted
• The method of calculating the increase must be specified

Challenging Excessive Increases

Victoria provides a robust process for renters to challenge increases they believe are excessive:

Step 1: Apply to Consumer Affairs Victoria (CAV)

• Renters must apply to the Director of CAV to investigate a rent increase within 30 days of receiving the notice.
• CAV will assess whether the increase is reasonable and provide a report.

Step 2: Apply to VCAT

If the matter is not resolved, renters can apply to VCAT for a determination. A renter may only apply to VCAT after receiving the Director's report, or if no report is received within 30 days of the request. VCAT considers prescribed matters including:

• The general level of rents for comparable properties in the area
• The condition and age of the property
• Any improvements or renovations made since the last increase
• The availability of comparable properties in the area
• Costs incurred by the rental provider

VCAT Outcomes

VCAT may:

• Approve the proposed increase
• Reduce the increase to a level it considers reasonable
• Disallow the increase entirely

Rental Bidding Ban (From November 2025)

The 2025 reforms also introduced a complete ban on rental bidding:

• Properties must be advertised at a fixed price
• Rental providers and agents cannot invite or accept offers above the advertised rent
• Cannot require or accept more than one month's rent in advance unless the weekly rent exceeds $900
• Penalties apply for breaches

Additional Bond for Rent Increases

Important: requesting an additional bond due to a rent increase is not permitted for:

• Periodic (month-to-month) agreements
• Fixed-term agreements of 5 years or less

An additional bond can only be requested for long-term agreements (exceeding 5 years) if the rent is increased, provided the rental provider gives 120 days' written notice.

Best Practices for Rental Providers

1. Research market rates — Use comparable rental data to justify your increase
2. Give more than minimum notice — It builds goodwill and reduces challenges
3. Document property improvements — Keep records of upgrades that support the increase
4. Keep increases reasonable — Excessive increases invite VCAT challenges
5. Follow the prescribed process — Defective notices are unenforceable
6. Consider tenant retention — High turnover costs often exceed moderate rent increases
7. Track increase dates — Ensure you don't increase more frequently than every 12 months

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