Victoria Rent Increase Rules: What Rental Providers Need to Know

Victoria's rent increase rules were strengthened in November 2025, requiring 90 days' notice 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

| Rule | Requirement | ---|--- | Frequency | Maximum once every 12 months | Notice period | 90 days written notice (increased from 60 in Nov 2025) | During fixed term | Only if the agreement specifies the calculation method | Cap on amount | No statutory cap, but subject to challenge | Challenge mechanism | Through CAV and VCAT |

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
• 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 can lodge a complaint with CAV
• CAV will assess whether the increase is reasonable

Step 2: Apply to VCAT

If the matter is not resolved, renters can apply to VCAT for a determination. 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 accept more than one month's rent in advance
• Penalties apply for breaches

Additional Bond for Rent Increases

Important: requesting an additional bond due to a rent increase is generally 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 (5+ years) being renewed for another fixed term of 5+ years, with 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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