A tenant failing to meet rental payments is a serious matter for any property owner, and in Victoria, a specific legal process must be followed. As of December 2025, this process doesn’t directly impact the property selling timeline, but it’s a crucial consideration for owners contemplating a sale.
Currently in Melbourne, if a tenant falls into arrears, the landlord (or their property manager) must first issue a Notice to Comply, giving the tenant 14 days to rectify the situation. If the rent remains unpaid, a Notice to Vacate can be served. This initiates a process that may involve VCAT (Victorian Civil and Administrative Tribunal) to seek a possession order. It’s important to realise that even during this process, the property can still be marketed for sale. However, prospective buyers in the Melbourne Eastern Suburbs – particularly families favouring areas like Balwyn and Doncaster – will want certainty regarding vacant possession. A property with ongoing tenancy may appeal to some investors, but generally, a vacant property presents a cleaner sale. In 2026, we anticipate continued demand for properties with clear timelines, meaning a resolved tenancy situation will likely maximise buyer interest and potentially sale price. The legal process can take several weeks, so factoring this into your selling strategy is essential. Fletchers’ experience across multiple generations demonstrates the importance of transparently disclosing the tenancy status to potential buyers.
Navigating tenancy issues while preparing to sell requires careful management, and understanding the Victorian legal framework is paramount.