What’s Changing and Why It Matters
From 1 March 2027, all rental properties in Victoria will need to meet new minimum energy efficiency and safety standards.
The goal is simple — improve comfort for renters, reduce running costs, and make homes more environmentally friendly.
For rental providers, this means:
- Upgrading old appliances when they reach the end of their life
- Installing insulation where it’s missing
- Improving cooling, heating, and water efficiency
- Making homes more draughtproof
These rules will apply at the start of new rental agreements (including switching to a periodic agreement), and in some cases to all rental properties by 2030.
The Key Dates and Requirements
From 1 March 2027 — When Appliances Reach End of Life
- Heating and Hot Water: If your current systems need replacing, they must be swapped for energy-efficient electric models. Note: “End of life” means when an appliance can’t be repaired cost-effectively.
From 1 March 2027 — At the Start of a Rental Agreement or When Switching to Periodic
- Cooling: Install energy-efficient, fixed cooling (such as a split system) in the main living area.
- Ceiling Insulation: If there’s no insulation, install ceiling insulation with an R-value of 5.0 or higher. R-value measures how well insulation resists heat flow — the higher the number, the better it performs.
- Shower Heads: Install 4-star-rated water-efficient shower heads.
From 1 July 2027 — At the Start of a Rental Agreement or When Switching to Periodic
- Draughtproofing: External doors, windows, and wall vents must be sealed to stop warm or cool air escaping.
From 1 July 2030 — All Rentals, No Matter the Agreement
- Cooling: Every rental property must have energy-efficient fixed cooling in the main living area — no exceptions.
Possible Exemptions
In some cases, it may be unreasonable to meet these standards — for example, due to building design limitations or heritage restrictions. Check the regulations for what qualifies, as exemptions differ for each standard.
Rebates and Support
Rental providers may be eligible for financial help through the Victorian Energy Upgrades Program. This can reduce the cost of installing compliant appliances or insulation. Always check for the latest rebates before you start work.
Why Acting Early Makes Sense
Leaving upgrades until the deadline could mean:
- Higher costs due to trade shortages
- Longer wait times for installation
- Potential delays in starting new rental agreements if your property isn’t compliant
By planning now, you can:
- Spread costs over several years
- Access rebates while they’re available
- Ensure a smooth transition without lost income
Final Word
These changes are a significant shift in how Victorian rental properties will be managed – but with early planning, they don’t have to be overwhelming. The key is to start understanding what’s required for your property, and considering when and how you will make the upgrades well before the cut-off dates.
The information provided in this blog is for general informational purposes only and should not be considered legal, financial, or professional advice. While we strive to ensure accuracy, real estate laws, market conditions, and regulations may change, Bendigo Real Estate encourages readers to seek independent advice from qualified professionals before making any property-related decisions. We are not liable for any actions taken based on this content, always verify information with relevant authorities to ensure compliance with current Australian laws and guidelines.