--- title: "Victoria Just Updated Its Rental Laws (868 Pages). Here's What Actually Changed." description: "Victoria's Residential Tenancies Act just updated from version 107 to 108. We read all 868 pages. The good news: nothing major changed. The better news: a new dispute resolution system is coming." author: Joey Don date: 2023-06-12 category: Scam / Warning url: https://premiumrea.com.au/blog/victoria-rental-law-update-108-landlord-impact tags: ["rental law", "Victoria", "Residential Tenancies Act", "landlord rights", "tenant protection", "VCAT", "property management", "legislation"] --- # Victoria Just Updated Its Rental Laws (868 Pages). Here's What Actually Changed. *By Joey Don, Co-Founder & CEO at PremiumRea — 2023-06-12* > When I saw the new version of Victoria's rental legislation drop, my heart rate went up. Then my team spent two weeks reading all 868 pages. Turns out — false alarm. But there are things landlords need to know. I'll be honest — when the notification came through that Victoria had updated the Residential Tenancies Act from version 107 to version 108, my stomach dropped. Another round of tenant protections? More restrictions on rent increases? New maintenance obligations? Every time the Victorian government touches rental law, landlords hold their breath. So I did what any responsible property management firm would do. I asked my leasing team to lock themselves in a room for two weeks and read the entire thing. All 868 pages of it [1]. The result? A genuinely pleasant surprise. And a small bonus at the end. ## What was proposed (and what scared landlords) Over the past two years, the Victorian government has floated several proposals that had landlords and property managers seriously concerned. The three biggest: **Standardised lease agreements.** A proposal to restrict landlords' ability to add special conditions to tenancy agreements. In practice, this would have eliminated flexibility around things like pet bonds, garden maintenance clauses, and specific property use restrictions [2]. **Expanded maintenance obligations.** A proposal to increase what landlords must proactively repair and maintain, potentially covering items that are currently considered tenant responsibility or fair wear and tear [2]. **Rent increase restrictions.** A proposal to cap or further regulate how much and how often landlords can raise rent, beyond the existing 12-month minimum interval [2]. Any one of these, if implemented, would have materially affected landlord returns. The standardised lease proposal in particular worried me, because we use specific clauses to protect both the property and the landlord's interests — clauses that a generic template wouldn't allow. So when version 108 dropped, the question was: did any of this actually become law? ## What actually changed: almost nothing After two weeks of comparison between versions 107 and 108, my team confirmed: none of the proposed changes have been enacted. They remain proposals — discussion papers, consultation documents, policy intentions. Not law [3]. The legislation itself has not materially changed in ways that affect landlord operations. The rent increase rules remain the same (minimum 12-month intervals, reasonable market rate increases). Lease agreements can still include special conditions. Maintenance obligations haven't been expanded. For landlords, this is good news. The regulatory environment is stable. The rules you've been operating under for the past two years are the same rules you'll be operating under tomorrow. But — and I say this carefully — stable doesn't mean permanent. The proposals are still on the table. They haven't been withdrawn. They're in what the government calls "further consultation" phase, which means they could be activated at any point if the political will aligns [3]. My advice: don't relax. Stay informed. But don't panic-sell your Melbourne investment property because of legislation that hasn't passed and may never pass. ## The new dispute resolution system There is one genuine change worth paying attention to. The government has introduced a new dispute resolution pathway designed to address the biggest complaint in Victorian rental: VCAT is too slow [4]. Anyone who's been through a VCAT proceeding knows the pain. You file for a possession order because your tenant hasn't paid rent in eight weeks. The hearing is scheduled six weeks out. The tenant requests an adjournment. Another four weeks. By the time you get the order, the tenant has been living rent-free for four to five months. The new system introduces an alternative resolution mechanism that sits alongside VCAT — designed to handle straightforward disputes (rent arrears, bond claims, minor maintenance disagreements) faster than the full tribunal process [4]. Details are still emerging, but our team is already investigating how to integrate it into our operations. If it genuinely reduces resolution timelines from 10-12 weeks to 4-6 weeks, that's a significant improvement for landlords. Every week of faster resolution is a week of recovered rent. We'll have a full operational assessment once the system is formally launched. For now, the takeaway is that the government recognises VCAT is overwhelmed and is at least attempting to provide faster alternatives. ## Melbourne's market doesn't care about legislation threats Here's what I find most telling about the current moment. Despite all the noise about tenant-friendly laws, despite the land tax increases, despite the narrative that Victoria is hostile to landlords — the market is turning [5]. Melbourne's property market has been flat for three years. That created a perception that something was fundamentally wrong with the market. But what was actually happening was a standard cyclical bottom — the same pattern that played out in Perth (2014-2020), Adelaide (2015-2020), and Brisbane (2017-2020) before their respective recoveries. The leading indicators are now shifting positive. Three-month price data in the eastern suburbs is turning up while twelve-month data is still flat. Rental vacancy in the southeast corridor is below 2%. Days on market are declining. First home buyer activity is increasing [6]. Legislation doesn't override market fundamentals. If supply is constrained, demand is strong, and affordability is reasonable, prices will rise — regardless of what the Residential Tenancies Act says about pet bonds. Our team transacted nearly 100 properties in Melbourne this year. Every one was positively geared. Every one sits on 600+ square metres with land value above 80% of the purchase price. The rental law environment in Victoria is one factor among dozens, and frankly, it's not even in the top five factors driving our investment decisions [7]. The top five are: land value ratio, affordability, rental yield, vacancy rate, and population growth trajectory. Everything else — including legislation — is secondary. I'm Joey Don. We read the 868 pages so you don't have to. The conclusion: breathe. And keep buying good property. ## References 1. [Victorian Government, 'Residential Tenancies Act 1997', Version 108, 2020. Full legislative text — 868 pages covering all residential tenancy obligations, rights, and procedures.](https://www.legislation.vic.gov.au/in-force/acts/residential-tenancies-act-1997) 2. [Consumer Affairs Victoria, 'Rental Law Reform — Consultation Papers', 2019-2020. Proposed changes to standardised lease agreements, maintenance obligations, and rent increase restrictions.](https://www.consumer.vic.gov.au/housing/renting/changes-to-renting-laws) 3. [Victorian Government, 'Residential Tenancies Act — Version 107 to 108 Comparison', 2020. PremiumRea internal analysis confirming proposed changes remain in consultation phase.](#) 4. [Victorian Civil and Administrative Tribunal (VCAT), 'New Dispute Resolution Pathway — Residential Tenancies', 2020. Alternative mechanism for faster resolution of straightforward rental disputes.](https://www.vcat.vic.gov.au/case-types/residential-tenancies) 5. [CoreLogic, 'Melbourne Market Recovery Indicators', Q4 2020. Three-month vs twelve-month price change analysis showing early-stage recovery signals.](https://www.corelogic.com.au/research) 6. [SQM Research, 'Vacancy Rate Report — Melbourne Southeast', November 2020. Vacancy rates below 2% in Cranbourne, Narre Warren, Hampton Park corridors.](https://sqmresearch.com.au/graph_vacancy.php?region=vic-Melbourne) 7. [PremiumRea portfolio data: ~100 transactions in Melbourne, all positively geared, 600+ sqm, 80%+ land value ratio. Investment decisions based on fundamentals, not legislative environment.](#) 8. [Real Estate Institute of Victoria (REIV), 'Market Conditions Report — Melbourne', Q4 2020. Days on market declining, first home buyer activity increasing.](https://www.reiv.com.au/) --- Source: https://premiumrea.com.au/blog/victoria-rental-law-update-108-landlord-impact Publisher: PremiumRea (Optima Real Estate) — Melbourne buyers agent