Understanding what alterations are permissible to a rental property in Victoria is crucial for both landlords and tenants, and impacts a property’s saleability. As of December 2025, modifications generally require written landlord consent, and must comply with building regulations and safety standards.
Currently in Melbourne, potential buyers often factor in existing modifications when evaluating a property. While minor changes like picture hooks are usually acceptable, more substantial alterations – such as painting, installing fixtures, or landscaping – typically need approval. When preparing a rental property for sale, sellers in the Eastern Suburbs often find that documenting all previous tenant modifications, and their associated approvals (or lack thereof), is essential. Buyers are increasingly aware of potential rectification costs if unapproved work exists. In 2026, we anticipate increased scrutiny of compliance with rental legislation during due diligence. Fletchers’ experience shows that properties with a clear history of well-managed modifications tend to attract greater buyer interest, particularly from investors. Typical preparation costs for addressing unapproved modifications can range from $500 for minor repairs to several thousand dollars for more significant work. The 2027 changes to minimum energy efficiency standards for rentals will also influence what modifications are considered desirable.
Navigating rental modification rules requires careful consideration, as it can directly affect a property’s appeal and value when it comes time to sell.