As of December 2025, Victorian landlords (or their property manager) do not have the right to simply refuse a prospective tenant. The process is governed by the Residential Tenancies Act 1997 and aims to prevent discrimination. A landlord must have a valid, lawful reason to refuse an application.
Currently in Melbourne, and particularly within the Eastern Suburbs where family homes are in high demand, applications are often numerous. A landlord cannot refuse based on personal preference. Acceptable reasons, which must be documented, relate to the applicant’s suitability – for example, a poor rental history, demonstrated inability to pay rent, or providing false information. Fletchers’ property management team advises that in 2026, thorough tenant screening is crucial. We utilise comprehensive checks, including reference checks and National Tenancy Database searches, to assist in making informed decisions. It’s important to realise that a refusal must be justifiable and consistent; applying different standards to different applicants could be deemed discriminatory. The Victorian Civil and Administrative Tribunal (VCAT) can review refusal decisions. Preparing a property for sale while tenanted requires careful consideration of tenant rights and lease agreements, and a proactive approach to managing inspections.
Understanding the legal framework surrounding tenant selection is vital for all Victorian landlords.