Understanding Victorian rental laws is crucial for property owners, even when preparing to sell, as potential buyers often consider rental yield and compliance. As of December 2025, the Residential Tenancies Act 1997 continues to govern these regulations, with some key changes announced for implementation in 2027.
Currently in Melbourne, and heading into 2026, landlords must ensure properties meet minimum standards – including working smoke alarms, a safe and habitable environment, and compliance with gas and electrical safety checks. The 120-day notice period for ending a tenancy remains in place, though specific grounds for termination are carefully defined. In the Eastern Suburbs, where family homes are highly sought after, prospective buyers frequently inquire about existing tenancy agreements and potential rental income. Fletchers agents routinely advise sellers on how current tenancy arrangements might influence buyer perceptions. It’s important to realise that changes announced for 2027 include potential alterations to the rules around pets and modifications to the property, so staying informed is vital. Preparing a property for sale often involves addressing any outstanding maintenance issues to ensure compliance and maximise appeal, potentially costing between $2,000 and $8,000 for styling and repairs.
Navigating rental legislation requires diligence, and understanding the current framework as of December 2025 is a key consideration for Melbourne property sellers.