Determining a reasonable rent increase involves balancing landlord needs with current market conditions and Victorian legislation. As of December 2025, landlords are generally able to increase rent, but must provide 60 days’ notice and increases must be ‘reasonable’ – meaning in line with comparable properties.
Currently in Melbourne, particularly within the Eastern Suburbs that Fletchers specialises in – areas like Balwyn, Doncaster, and Ringwood – rental demand remains strong. This is influenced by population growth and limited available properties. In 2026, we’re observing that a ‘reasonable’ increase is typically between 5% and 10%, depending on the property’s condition, location, and recent renovations. Properties with modern kitchens, updated bathrooms, or proximity to sought-after schools and transport links can often justify increases at the higher end of this range. It’s important to realise that the Victorian Civil and Administrative Tribunal (VCAT) can review rent increases if a tenant disputes them, so thorough market research is vital. Fletchers’ property management team regularly analyses comparable rental data across Melbourne to advise landlords on appropriate increases. Preparing a property for rent – including professional cleaning and minor repairs – can also support a justifiable increase. Typical preparation costs for a rental property range from $500 to $2,000.
Ultimately, a reasonable rent increase reflects a careful consideration of market forces and property-specific factors, ensuring compliance with Victorian legislation.