While technically legal, paying rent in cash is becoming increasingly uncommon in Melbourne, and is rarely favoured by rental providers (landlords) as of December 2025. Most rental agreements now stipulate electronic funds transfer (EFT) as the preferred method.
Currently in Melbourne, the vast majority of rental providers prefer the security and transparency of digital payments. This is partly due to increased scrutiny around record-keeping for tax purposes, and partly due to the convenience of automated systems. While a rental provider *can’t* legally refuse cash, they can specify EFT in the lease agreement, and many do. For sellers considering investment properties in the Eastern Suburbs – areas like Balwyn and Doncaster where rental yields are keenly observed – understanding this shift is important. Tenants are increasingly accustomed to digital transactions, and properties offering this convenience may attract higher-quality applicants. Furthermore, detailed rental income records are crucial when it comes time to realise the capital gain on your property. As of December 2025, a well-documented rental history adds value to a property’s appeal to potential buyers. In 2026, we anticipate this trend will continue, with further emphasis on digital financial management within the rental market.
Essentially, while not prohibited, cash rent payments are largely a practice of the past in Melbourne, with digital methods now dominating the rental landscape.