If a tenant in Victoria is unable to meet their rental payments, it initiates a formal process governed by Consumer Affairs Victoria. This typically begins with the landlord or agent issuing a Notice to Vacate, outlining the arrears and a date to vacate the property.
As of December 2025, understanding this process is particularly relevant for prospective sellers who currently have tenants. While not directly impacting the sale itself, unresolved tenancy issues can complicate the handover to new owners. In 2026, Melbourne’s rental market remains competitive, meaning landlords are generally keen to resolve arrears quickly. A property with a problematic tenancy may require a price adjustment to compensate potential buyers for the associated risk. Fletchers’ experience across the Eastern Suburbs – Balwyn, Blackburn, and Ringwood particularly – shows buyers often favour properties with clear tenancy records. The legal process can take several weeks, and in some cases, may involve VCAT (Victorian Civil and Administrative Tribunal). This can extend the time a property is on the market. Currently in Melbourne, a well-managed tenancy, demonstrated through clear communication and adherence to regulations, is a significant asset when presenting a property for sale. Preparing documentation relating to the tenancy is a key part of the sales process.
Navigating tenancy legislation is crucial for a smooth property transaction, and understanding the process is essential for both landlords and potential buyers.