Resolving disputes with tenants in Victoria involves a specific process, primarily managed through Consumer Affairs Victoria and, if necessary, the Victorian Civil and Administrative Tribunal (VCAT). As of December 2025, understanding this process is crucial for property owners, particularly when preparing a property for sale with a tenancy in place.
Currently in Melbourne, if a dispute arises – concerning rent arrears, property damage, or lease breaches – the first step is generally a written notice to the tenant outlining the issue and desired resolution. If this doesn’t resolve the matter, mediation through Consumer Affairs Victoria is a common next step. Should mediation fail, either party can apply to VCAT for a hearing. It’s important to realise that selling a tenanted property doesn’t automatically terminate the lease; the new owner inherits the tenancy agreement. Therefore, a clear understanding of the existing lease and any ongoing disputes is vital during the sales process. In 2026, prospective buyers in the Eastern Suburbs, where family homes near schools are in high demand, will carefully scrutinise tenancy agreements as part of their due diligence. Fletchers’ agents routinely advise sellers on navigating these complexities, ensuring transparency with potential purchasers. We emphasise the importance of documenting all communication and adhering to the timelines set by Consumer Affairs Victoria. Changes announced for 2027 regarding rental minimum standards will also be a key consideration for sellers.
Successfully navigating tenant disputes requires adherence to Victorian legislation and a clear understanding of the processes available.