Determining rental increases involves balancing maximising your investment return with maintaining tenant retention, and is influenced by current market conditions. As of December 2025, Melbourne’s rental market is experiencing moderate growth, with forecasts of 3-6% for 2026.
Currently in Melbourne, particularly within the Eastern Suburbs – areas like Balwyn, Doncaster, and Ringwood – rental reviews typically occur annually. However, the timing isn’t fixed. Landlords often align increases with lease renewals. Fletchers’ property management team observes that demand for family homes near quality schools and transport links continues to favour landlords. A well-maintained property in a desirable location will generally support a higher rental yield. In 2026, prospective tenants are increasingly prioritising properties that offer value for money, meaning presentation is key. While there’s no set formula, increases are generally benchmarked against comparable properties in the immediate area. We see many investors utilising professional property appraisals to understand current market rent before making a decision. It’s important to note that Victorian legislation dictates specific notice periods for rent increases, which are expected to remain consistent into 2027.
Successfully navigating rental increases requires a considered approach, informed by local market data and a clear understanding of your property’s appeal.