With rental reforms underway in Victoria and penalties being applied for property owners and agencies who get things wrong, compliance will be firmly in the spotlight in 2026.
The question many real estate agencies are now asking is: Does our property management department need a dedicated compliance manager?
Given the legislative challenges facing Victorian rental property owners and managers, introducing someone to take on accountability in this area does make sense.
Victoria’s compliance landscape is changing
Recent reforms under the Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill 2024 affect how properties are advertised, maintained, upgraded and managed throughout the tenancy lifecycle.
Property managers are now expected to stay on top of the following:
Expanded minimum rental standards must be met before a property is advertised
Annual smoke alarm and safety checks, with strict documentation requirements
Energy efficiency upgrades set to be phased in from 2025 onwards
Longer notice periods and tighter termination rules
Stricter data handling, privacy protections and standardised applications
A new dispute resolution body, increasing scrutiny of agency processes
This is a heavy compliance load to carry on top of day-to-day property management.
The cost of non-compliance
Penalties for breaches can reach tens of thousands of dollars per property, with fines of up to $47,000 for serious non-compliance.
Non-compliance with the latest Victorian rental property regulations may also lead to:
VCAT disputes and reputational damage
Increased workload for already stretched property managers
Loss of rental property owner confidence and churn within the rent roll
Difficulty attracting quality rental providers who want certainty
Being listed on the rental non-compliance register
Properties under management being marked as worthless during a rent roll exchange
In an environment where every agency is competing to build high-value rent rolls, compliance failures can diminish business value.
Why compliance requires ownership
Compliance has traditionally been treated as a shared responsibility across a property management team. In practice, this often means it becomes reactive: addressed when something goes wrong, a deadline is missed or a complaint is lodged.
A dedicated compliance manager as part of the team changes this dynamic.
This individual could have KPIs around:
Keeping track of legislative changes and translating them into clear internal processes
Auditing PUMs to identify risks before they become breaches
Ensuring properties meet minimum standards before they are advertised or re-let
Coordinating safety checks, upgrades and documentation at scale
Supporting property managers with expert guidance, not added pressure
Communicating with property owners to help them understand the urgency and importance of compliance
This proactive approach can reduce risk for your agency and your clients, while helping you build a more robust asset.
Compliance done well increases rent roll value
Introducing an individual to oversee compliance can be a commercially smart move.
First, this is a selling point for BDMs, who can highlight this as a point of difference and leverage it to attract new clients.
Compliance ownership also shows existing clients your agency is proactive rather than reactive and gives them further confidence their assets are being professionally managed.
Finally, having a property manager or administrative team member who is KPI-ed around compliance has the power to add value to your rent roll when the time comes to sell. They could potentially be included as part of the exchange, or their support can make it easier to confirm all PUMs meet compliance requirements during the due diligence phase.
A strategic shift for the better
By protecting your renters and giving them a safer, more comfortable home, you will in turn, protect your property owner clients and ensure your rent roll is sale-ready.
Assigning a compliance manager may not require a full-time headcount, as someone on your team may already have taken on this responsibility or be prepared to centre their role around it.
If you decide to spread responsibility across a number of team members instead of giving one person ownership, protect your rent roll by creating compliance checklists, then assigning and tracking KPIs, so no PUM slips between the cracks in terms of compliance.
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Compliance is in the spotlight because of major Victorian rental reforms under the Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill 2024. These changes affect how properties are advertised, maintained, upgraded and managed, making it essential for agencies to meet stricter standards, documentation, and privacy requirements, or risk significant penalties.
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A dedicated compliance manager helps translate legislative changes into actionable processes, audits properties proactively, oversees safety checks, and provides expert guidance to property managers. This proactive oversight not only reduces risk but also strengthens property owner trust and enhances the commercial value of the rent roll.
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Without clear ownership of compliance, REA businesses face a heavy workload, and reactive issue management. Non-compliance can lead to significant fines, VCAT disputes, reputational damage, and lower rent roll value during sale or exchange.