Generally, landlords in Victoria cannot increase rent during a fixed-term lease. As of December 2025, any rent increase must wait until a new lease agreement is established.
However, there are specific circumstances where a landlord can apply for a rent increase during a lease. These applications are made through the Victorian Civil and Administrative Tribunal (VCAT) and are limited to situations where there have been significant changes to the property, such as substantial renovations or the addition of amenities. Currently in Melbourne, VCAT assesses these applications based on market value and the extent of the improvements. For properties in the Eastern Suburbs, where strong demand for family homes near schools like Balwyn High and Blackburn High is typical, VCAT will consider comparable rental rates for similar properties. It’s important to realise that even with improvements, a VCAT application isn’t guaranteed to be approved. Many landlords instead choose to offer incentives for lease renewals, such as minor upgrades or a small rent adjustment, rather than pursue a VCAT application. In 2026, we anticipate continued scrutiny of rental increases, particularly given the moderate dwelling value growth of 3-6% forecast across Melbourne.
Understanding these regulations is crucial for both landlords and tenants, and navigating them effectively requires awareness of current Victorian legislation.