It’s vital that rental providers ensure all their rental properties meet the minimum standards. These are the rental minimum standards for properties in Victoria.
Landlord
Five things landlords in Victoria should consider before renting out a property
Becoming a landlord can be a rewarding way to build long-term wealth, but it also comes with responsibilities, risks and ongoing decisions.
Whether you own a single investment property or a growing portfolio, the right preparation can help protect your assets, support your tenants and reduce stress over the life of the tenancy.
From understanding your legal obligations to ensuring your property meets Victoria's minimum standards, here are five key things every landlord should consider when renting out a property.
More: Minimum standards for rental properties in Victoria - what landlords must know
Should you hire a property manager for your rental property?
One of the first decisions landlords face is whether to manage the property themselves or engage a professional property manager.
A qualified property manager can provide significant value, particularly for landlords who lack time, experience or proximity to their rental property.
By managing the property yourself, however, you will save money on fees that can cost a significant portion of your weekly rental income. Alternatively, you could hire a letting agent to find tenants and handle the bond payment before managing the property yourself.
What does a property manager do?
A licensed property manager typically handles:
- advertising and leasing the property
- screening and helping select tenants
- preparing tenancy agreements and condition reports
- collecting rent and managing bond lodgement
- organising inspections, maintenance and repairs
- handling disputes and compliance issues.
Benefits of hiring a property manager
A good property manager helps protect both your investment and your compliance position. They understand local rental markets, can set realistic rent levels, and know how to respond appropriately to issues such as rent arrears, property damage or breaches of lease conditions.
They can also help ensure your property continues to meet Victorian Minimum Standards and other legislative reforms, reducing the risk of penalties or tenancy disputes.
Choosing the right property manager
When selecting a property manager, consider:
- their experience in your local area
- fee structures and inclusions
- communication style and responsiveness
- processes for maintenance and emergency repairs.
A proactive property manager can save landlords time, reduce stress and help maintain strong tenant relationships.
Landlord insurance policies vary, so it's important to review what is and isn't included.
Do landlords need landlord insurance in Victoria?
While rental income provides financial returns, it also exposes landlords to risks that standard home insurance may not cover. While home insurance can help cover events like floods, fires and storms, it doesn't always cover tenant-related incidents. Not only does landlord insurance cover you for damage to your building and contents, but it also can cover you for tenant-related incidents.
What does landlord insurance cover?
Landlord insurance policies vary, so it's important to review what is and isn't included. When choosing a policy, landlords should consider the level of cover, excess amounts and any exclusions that may apply.
RACV Landlord Insurance covers:
- Rent default cover of up to $10,000, plus associated legal costs up to $10,000, if your tenant stops paying rent or leaves without notice.*
- Loss of rent cover for up to 12 months if your rental property is uninhabitable following a listed event.**
- Damage by tenants and tenant's pets, including theft by the tenant or their guest.*
- Lock replacement costs up to $800 if a key for an external lock to your rental property is stolen during a theft at your site or if it's not returned to you upon termination of a tenancy.++
- Lawful removal and disposal of tenants' possessions costs up to $10,000 if a tenant leaves without notice.
- Contamination caused by the manufacture, storage, or distribution of illegal drugs caused by a tenant or their guest by the manufacturing, storage or distribution of illegal drugs.*
- Up to $20 million in liability cover to handle a claim made against you for an incident taking place at your home or site which causes death or injury to someone else or loss or damage to someone else's property.
- A range of events such as fire, theft and attempted theft, vandalism, storm, storm surge, animal damage, earthquake and explosion.
Landlord insurance vs building insurance
Building insurance usually covers structural damage caused by events such as fire, storm or flood. However, it may not cover tenant-related risks such as unpaid rent or deliberate damage. Landlord insurance complements building insurance by addressing risks unique to rental properties.
Why landlord insurance matters
Even with careful tenant screening, unforeseen issues can arise. Rental arrears, accidental damage or legal claims can have significant financial consequences. Landlord insurance provides an additional layer of financial protection and peace of mind, particularly during extended tenancies.
* When your claim is processed, four times the weekly rental amount and any applicable excess will be deducted from the payout. A valid rental agreement is required. This cover isn't available if a previous claim for rent default, theft or damage by tenant has been paid under the same tenancy or if your tenant is behind in rent payments before your policy begins.
** Covered under Landlord Buildings Insurance only, if the home is deemed unliveable. A valid rental agreement is required.
++ Up to $800 if a key for an external lock to your rental property is stolen during a theft at your site or if it’s not returned to you upon termination of a tenancy. Does not apply if only claiming for theft of keys.
In Victoria, landlords are responsible for ensuring the property is maintained and in good repair.
Why landlords need reliable tradespeople for rental properties
Maintenance is an unavoidable part of owning a rental property. Having access to reliable, licensed tradespeople can make a significant difference when issues arise.
Why reliable trades matter
In Victoria, landlords are responsible for ensuring the property is maintained and in good repair. Certain repairs are classified as urgent, such as:
- burst water services
- gas leaks
- electrical faults
- serious roof leaks
- failure of essential services like heating.
Delays in addressing urgent repairs can lead to tenant complaints, legal action and potential compensation claims. That's why it's ideal to subscribe to a service that's available to help 24/7 for home emergencies, like RACV Home Emergency Assist.
Building a trusted network
Many landlords benefit from building a small network of trusted tradies, such as:
- plumbers
- electricians
- locksmiths
- heating and cooling technicians
- gutter cleaners
- smoke alarm servicers.
A reliable tradie who understands rental properties can respond quickly, provide transparent pricing and help ensure repairs meet compliance requirements.
Preventative maintenance
Regular maintenance can help prevent small issues from becoming costly problems. Scheduled servicing of essential appliances like heating systems and smoke alarms not only protects your asset but also helps meet safety and legal obligations.
Legal responsibilities of landlords in Victoria
Victorian landlords have clear legal responsibilities under the Residential Tenancies Act 1997 (Vic) and its reforms.
Key landlord obligations in Victoria
Landlords must:
- provide a property that is safe, clean and in good repair
- ensure the property meets Minimum Standards
- carry out repairs within required timeframes
- respect tenant privacy and provide proper notice for entry
- lodge bonds correctly with the Residential Tenancies Bond Authority (RTBA).
Tenants also have rights to quiet enjoyment of the property, meaning landlords cannot interfere unreasonably during the tenancy.
Staying informed
Rental laws in Victoria have undergone significant changes in recent years. Landlords should stay informed through trusted sources, professional property managers or legal advice to ensure ongoing compliance.
More: Rental property safety - information about home safety for rental providers
Consequences for landlords
Failing to meet these your legal obligations as a landlord can result in fines, compensation orders or disputes at the Victorian Civil and Administrative Tribunal (VCAT).
In the past year, the Victorian Government has established a Renting Taskforce to monitor poor conduct and offences affecting the safety, security and tenure for renters. This includes:
- renting out a property that doesn’t meet the Rental Minimum Standards
- false advertising
- excessive bonds
- not lodging bonds with the Residential Tenancies Bond Authority
- illegal notices to vacate
- failure to provide a condition report
- rental bidding.
The Renting Taskforce has the power to take enforcement action, including official warnings, infringements (fines), disciplinary proceedings against estate agents, and court actions for the most serious breaches.
The government has also set up Rental Dispute Resolution Victoria (RDRV) to assist with disputes over bonds, excessive rent, compensation, and repairs.
Victoria’s minimum standards for rental properties
One of the most critical responsibilities for landlords is ensuring their rental property meets Victoria's minimum standards before it's advertised, and throughout its rental duration.
What are Victoria's minimum standards for rental properties?
Victoria's minimum standards set out the basic requirements a rental property must meet, covering areas such as:
- structural soundness
- adequate heating in the main living area
- safe electrical and gas installations
- secure external doors and windows
- proper ventilation in bathrooms and kitchens
- correctly installed and regularly maintained smoke alarms
- anchored curtain and blind cords.
These minimum standards, which are detailed in Schedule 4 of the Residential Tenancies Regulations 2021, aim to ensure rental properties are safe, secure and fit for habitation. Failure to comply can result in penalties and may allow tenants to withhold rent or terminate the lease. Regular inspections and proactive maintenance can help landlords identify and resolve compliance issues early.
It's worth nothing that new minimum energy efficiency standards will be phased in for rental properties from 2027. These standards will cover heating, cooling, hot water, shower heads, ceiling insulation and draughtproofing.
The information provided is general advice only. Before making any decisions please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. As distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed. Product(s) issued by Insurance Manufacturers of Australia Pty Ltd ABN 93 004 208 084 AFS Licence No. 227678.
RACV Trades is a trading name of RACV's trade partner, Club Home Response Pty Ltd (Victorian registered domestic building practitioner number CDB-U 100178). All works are performed or arranged by Club Home Response Pty Ltd. trading as RACV Trades. Read the RACV Trades Terms and Conditions.
RACV Emergency Home Assist is an emergency home service product, separate to insurance, that is provided by Royal Automobile Club of Victoria (RACV) Ltd and not RACV Insurance Services Pty Ltd. It is a fast response service for common plumbing, electrical and locksmith emergencies, all for one annual fee. Up to 1 hour of labour, including minor parts and materials, is used to repair or make your home safe. Emergency Home Assist does not insure you against the costs of a home emergency and is not a home insurance product. Call outs are unlimited, subject to the fair use policy. Refer to the RACV Emergency Home Assist Terms and Conditions for more details.
