Victoria Lease Requirements: Prescribed Forms and Mandatory Terms

Victoria has strict requirements for rental agreements — rental providers must use prescribed forms from Consumer Affairs Victoria and cannot include certain prohibited clauses. Non-compliance can result in penalties and unenforceable terms.

Prescribed Forms Victoria mandates the use of Consumer Affairs Victoria (CAV) prescribed forms for written rental agreements:

| Form | Use Case | ---|--- | Form 1 | Fixed-term agreements up to 5 years | Form 2 | Fixed-term agreements over 5 years | Form 16A | Park Site Agreements (from 1 July 2026) |

Key Rules

• It is illegal for a rental provider or agent to prepare a written agreement that is not on a CAV form
• Either Form 1 or Form 2 can be used for agreements over 5 years, though Form 2 includes specific provisions for longer terms
• Verbal agreements are legally binding but written agreements are strongly recommended for enforceability

Agreement Types

Fixed-Term Agreement

• Has a defined start and end date
• Cannot be ended early without cause or agreement from both parties
• Rent cannot increase during the term unless the agreement specifies the method
• At expiry, converts to periodic (month-to-month) if neither party acts

Periodic (Month-to-Month) Agreement

• Continues indefinitely until ended by either party
• Rental providers must give 90 days' notice to end (with valid reason)
• Renters must give 28 days' notice to end
• Rent can be increased once per 12 months with 90 days' notice

Mandatory Agreement Contents

Every rental agreement must include:

1. Rent amount and payment method
2. Bond amount (if applicable)
3. Urgent repairs contact — phone number
4. Contact details — rental provider/agent full name, address, email
5. Agreement type and duration — fixed-term dates or periodic
6. Condition report reference
7. Pet permission — whether pets are approved (if applicable)

Prohibited Clauses The following terms cannot be included in Victorian rental agreements:

| Prohibited Clause | Why It's Invalid | ---|--- | Requiring the renter to take out insurance | Renter's choice | Additional rent or penalties for breaking rules | Not permitted | Requiring payment for agreement preparation | Landlord's cost | Requiring payment via a method that incurs extra costs | Beyond standard bank fees | Mandating a nominated third-party service provider | Except embedded networks |

| Making the renter pay for maintenance of safety equipment | Landlord's responsibility | Indemnifying the rental provider | Unenforceable | Paying the rental provider's VCAT costs | Not permitted | Paying insurance excess for landlord's policy | Renter not liable | Fixed fee for early termination without clear calculation basis | Must explain how calculated | Mandatory professional cleaning at end of tenancy | Unless restoring to original condition per condition report |

Documents Provided at Signing The rental provider must give the renter:

• A copy of the written rental agreement
• The "Renters Guide" from Consumer Affairs Victoria
• A condition report (two paper or one electronic copy)
• A complete set of keys (one per renter)
• Contact details for urgent repairs

Modifications During Tenancy

Changes to a rental agreement during the tenancy require:

• Written agreement from both parties
• Modifications should be documented as addenda to the original agreement
• Certain terms (e.g., rent, bond) have specific procedures for changes

Ending a Tenancy

Renter's Notice

• Periodic tenancy: 28 days' written notice
• Fixed-term: generally cannot end early without cause or mutual agreement
• Some circumstances allow early termination (family violence, property damage)

Rental Provider's Notice

• Must provide a valid reason (from November 2025)
• 90 days' notice for non-fault reasons
• 14 days for fault-based reasons (nonpayment, breach)

Best Practices for Rental Providers

1. Always use prescribed CAV forms — Any other format is illegal
2. Review for prohibited clauses — Ensure no unlawful terms sneak in
3. Keep signed copies — Both parties should retain their copies
4. Provide all documents before move-in — agreement, guide, condition report, keys
5. Update templates regularly — Laws change frequently in Victoria
6. Seek legal review — Have a property lawyer review your standard terms

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