The rental rule changes in Victoria over the last 5 years have been bemoaned by owners and agents alike. They have included,
- A reduction in owner’s rights.
- Extra costs.
- More regulation and process.
- Tenant friendly rules and VCAT outcomes.
At first, this felt like an owner’s fundamental property rights were being stripped away. I would love a dollar for every time an owner said to me “It’s my property. I should be able to do this or that”.
But as these rules have settled in and everyone adjusted, owners are starting to win as well.
In March 2021, 130 reforms flipped the way rental property operated in Victoria. And the changes kept coming in 2023, 2025, 2026 and are still rolling out.
In the bad old days, renters put up with run down homes. For younger people it was like a badge of honour to live in a rental that was old and cold. Many rental properties pitched at the lower end of the market got the bare minimum care to keep the property rented. Owners and agents certainly didn’t see a renter’s safety or well-being as their responsibility.
It could be argued some tenants liked it run down and cheap. They could save for a home faster and were more than capable of looking after their own well-being. But like it or not, the world has changed. Renting was more of a stepping stone to buying a home as quickly as possible.
All the new rental rules have now made renting a home a lot more stable, safe and comfortable. Renters feel more respected, protected and secure. So why rush out and buy a home when you are treated like that?
At its core, the reform agenda has elevated the status of the renter. No longer are renters treated as a short-term occupant. The rules even changed the name of a tenant to a renter. Renters are increasingly respected and positioned as a long-term participant in the housing system. That shift in perception (albeit driven via regulation) is proving powerful. When renters feel secure and know they can’t be moved out without reason, they begin to behave differently. They settle. They invest emotionally in the home. They can have a pet. They stay.
Renting is now feeling like a more permanent housing solution.
- You can’t get kicked out for no reason.
- The owner or agent can’t just rock up unannounced.
- Changes to the rent or terms are scheduled a long way out.
- Basic needs including heating and privacy are mandatory.
- There are safety standards for gas, electrical and smoke alarms services.
Professional property managers enjoy a collaborative respectful relationship with renters which creates better outcomes for all. Renting is starting to feel like a pretty good longer-term option.
Longer tenancies (occupation more so than lease terms) are becoming more common across Melbourne’s apartment market. The change is noticeable in the inner-city investor stock that once saw more frequent turnover. What used to be a revolving door of 12-month leases is, in many cases, evolving into multi-year occupancy. The benefits to owners are immediate and tangible. Reduced vacancy periods, fewer letting fees, less wear and tear from regular tenant moves and most importantly, predictable uninterrupted rental income.
We know from experience when a property is well maintained and everything works, it attracts better tenants. They in turn also look after it and treat their home with respect. Regular maintenance and updates pay their way.
Owners are starting to enjoy more stable longer-term renters who are loving the new world or greater protection and safer homes. Yes, there are costs, but many of these are being passed on to renters in the form of higher rent. Less renter turnover saves costs as well as rental voids that hit the bottom line.
In a market where volatility has often been the norm, that kind of stability is incredibly valuable.
Overlay this with a broader structural shift where home ownership is becoming increasingly out of reach for many renters. Rising home prices, tighter lending conditions, and cost-of-living pressures are delaying, or completely reshaping the path to ownership. Renting is no longer just a stepping stone. For many, it’s a long-term housing solution. And thanks to the reforms, it’s now a more secure and dignified one.
This is what we mean by the “institutionalisation” of renting. A generation of tenants is emerging who are not just passing through the rental market but embedding themselves within it. For investors, that creates a more reliable, more mature tenant pool. One that values stability just as much as the owner does.
Unfortunately for renters the cost of rental accommodation is likely to keep rising as new housing becomes increasingly expensive and housing demand continues unabated.
Since March 2021 the narrative has been one of tenant-friendly reform and landlord frustration. But beneath that noise, the market is recalibrating. What initially felt like a restriction on owners’ rights is, in practice, creating a more stable, more predictable, and ultimately more profitable rental asset.
However, the question remains. What is the right level of renter protection or support? Some renters may be happy to sacrifice a degree of amenity to save money. Some of that choice has been removed from renters. Their freedom of choice has been diminished.
Property managers and owners who have embraced the changes and looked after their investment property are enjoying the upside of longer-term stable tenants with less turn-over and consistent rental growth.
