Victorian rental law reform moved from “coming soon” to “here now” on 25 November 2025, and the flow-on effects will be felt throughout 2026.
The changes are outlined on the Consumer Affairs Victoria website. In addition to affecting day-to-day management practices, they will influence risk, income certainty and ‘saleabilty’ for rent rolls, and will therefore have an impact on the exchange process.
Below are three reforms which have the potential to reshape rent roll valuation in Victoria next year and what we believe agency principals should watch closely.
1. Ban on no-fault evictions
From 25 November 2025, rental providers in Victoria can’t end a lease and ask the renters to leave without a valid reason such as the sale of the property, renovation, or a breach of the agreement on the renters’ part.
Why this affects rent roll valuation:
Reliable, trustworthy renters have always been worth more, and the inability to move on renters ‘just because’ puts pressure on to ensure properties are released to people who can be counted on.
If your rent roll can prove a strong history of retention, even with no-fault evictions allowed, it may be more appealing to a buyer who will feel confident they are taking over a collection of properties with fewer issues.
Going forward, rent roll buyers will look harder at:
arrears history and VCAT exposure
management behaviour and communication patterns
property condition and complaint frequency
Buyers need to know they are buying a trouble-free rent roll and not inheriting problem renters who are impossible to move on because they’re not officially breaking any rules.
2. Minimum standards before advertising
Victoria now requires all rental properties to meet the state’s minimum rental standards before they can be advertised or offered to let. Advertising a non-compliant property is an offence, with liability shared between property owner and the property manager.
Why this affects valuation:
A property under management can only generate fees if the property can legally be leased. Where a property cannot be advertised due to non-compliance, its practical income value to a buyer is nil until rectified. That means rent roll buyers will:
request documented evidence of compliance
scrutinise maintenance backlogs and safety records
discount or exclude properties with unresolved minimum-standard issues
submit a dispute during the transition period if homes are found to be below standard
For sellers, this is a reminder compliance requirements are not to be ignored. Rent rolls with tidy compliance files and proactive upgrade programs will come to market with far less friction and stronger demand.
On another note, it’s also important to include mention of what will happen if properties are found to be non-compliant during the retention period.
Read our recent article for more on this subject.
3. Ban on rental bidding & notice periods for rent increases
Also as of November 2025, Victorian agents and rental property owners can’t solicit or accept rent above the advertised price, and they cannot accept more than one month’s worth of rent in advance.
To add to this, notice periods for rental increases will expand to 90 days, and the Director of Consumer Affairs Victoria and (VCAT) will be able to consider additional factors when determining whether a proposed rent increase is excessive.
Why this affects valuation:
Buyers pay a premium in anticipation of realistic growth in management income. If properties are leased below market rate, it will take at least three months to increase the rent when the roll changes hands. Because of this, sellers should expect buyers to scrutinise rental charges to ensure they match market value, and should take steps to ensure all rents reflect market value before putting a roll up for sale.
In 2026, any agency preparing to sell a rent roll will need to ensure all properties are compliant, have quality renters in place, review rental charges and map out a plan for any rent reviews. This will help showcase a better quality asset for buyers.
Need help to prepare your rent roll for sale or to review the compliance of one you plan to purchase? Reach out to BDH Solutions today.
Rent Roll Valuation FAQs
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Steps to prepare for a rent roll sale:
Audit minimum-standard compliance across the board
Clear maintenance backlogs
Liaise with property owners to bring homes up to compliant standards
Document everything
Review rent-setting practices to ensure increases are evidence-based and defensible
Increase rent to meet market value
Ensure renters are reliable and avoid renewing the lease of the renters who cause headaches and issues without directly breaking rules
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A rental property has zero income value to a buyer until it can be legally advertised and leased. Buyers may exclude it from the valuation, discount it heavily or require compensation for costs involved with bringing it up to code.