Legally ending a tenancy in Victoria involves specific notice periods and adherence to the Residential Tenancies Act 1997, with some changes scheduled for 2027. As of December 2025, understanding these requirements is crucial for a smooth property sale.
In 2026, if you’re selling a property with a fixed-term lease, the tenancy continues until the end date unless the tenant agrees to terminate it early. If the lease is periodic (month-to-month), you must provide 60 days’ notice to vacate, aligning with current legislation. Importantly, the notice period begins *after* a Notice of Intention to Sell has been served. Currently in Melbourne, particularly in the Eastern Suburbs where family homes are in high demand, prospective buyers often factor in existing tenancies. A vacant possession can favour a quicker sale and potentially a higher price, but this isn’t always the case. Sellers should be aware that compensation may be payable to the tenant for early termination, and the amount is determined by the legislation. Fletchers’ experience shows that clear communication with tenants, facilitated by your property manager, is key to minimising disruption. Preparing for potential tenant questions regarding their rights is also important. The costs associated with legal notices and potential compensation should be factored into your overall selling budget, alongside typical preparation costs like styling ($2,000-$8,000) and photography ($500-$1,500).
Successfully navigating tenancy termination is a vital component of the property selling process in Victoria, requiring careful adherence to legal requirements and proactive communication.