Landlords in Victoria, including Melbourne, cannot increase rent whenever they choose. Rent increases are governed by legislation and must adhere to specific rules regarding frequency and notice periods.
As of December 2025, in Melbourne, landlords can only increase rent once every 12 months. They must provide a minimum of 60 days’ written notice before the increase takes effect. This notice must clearly state the new rent amount and the date it will be payable. Currently in Melbourne, the Victorian Civil and Administrative Tribunal (VCAT) can review a rent increase if a tenant disputes it, considering factors like comparable rental properties in the area. In the Eastern Suburbs, where demand for family homes near schools like those in Balwyn and Blackburn remains strong, landlords can generally justify increases aligned with the moderate 3-6% dwelling value growth forecast for 2026. However, the property’s condition and any recent renovations also play a role. Preparing a property for sale often involves addressing maintenance issues that might also influence a justifiable rent increase prior to listing – a well-maintained property typically attracts higher offers. Fletchers’ local market expertise allows us to accurately assess comparable rental values when advising clients.
Understanding these regulations is crucial for both landlords and tenants, ensuring a fair and transparent rental process.