From October 30, 2025, all rental properties and rooming houses in Victoria will be subject to new minimum standards focusing on insulation and energy efficiency. Introduced by the Victorian Government, these changes aim to improve comfort, health, and sustainability for renters across the state. For landlords, they present new obligations and opportunities; ones that call for early planning and smart investment.
Read on for more information on what these changes mean, how they affect both landlords and tenants, and how providers like Enviroflex can help you navigate a smooth path to compliance.
Key Changes to the Regulations
Effective from October 30, 2025, under specific conditions
The new minimum standards apply when a new rental agreement begins, or an existing one becomes periodic. They target key areas of a property’s structure and services to improve energy efficiency and reduce environmental impact.
Ceiling Insulation Standards
If a rental property currently has no ceiling insulation, it must be installed when a new lease starts or a periodic lease begins. This change applies to all rental and rooming houses, and the installation must be carried out by professionals to ensure safety and compliance.
Ceiling insulation significantly improves a home’s ability to retain heat in winter and stay cool in summer, reducing the need for artificial heating and cooling. While the upfront cost may vary depending on the size and condition of the property, it’s an investment that delivers long-term value, both in comfort and energy savings.
Draught Proofing
From October 30, 2025, draught proofing will be mandatory for all properties where a new or converted lease is in effect. This involves sealing gaps and cracks that allow unwanted airflow between the inside and outside of a property.
Common draught proofing methods include:
- Weather stripping on doors and windows
- Caulking gaps in skirting boards, floorboards, and window frames
- Door snakes or under-door seals
- Foam sealing around windows
Even modest improvements in this area can dramatically reduce heating and cooling costs and make indoor environments more comfortable year-round.
Energy-efficient Heating and Cooling
Ensuring that all rental properties offer effective temperature control is a core part of the new regulations.
Cooling requirements:
- If there is no existing cooling system, a fixed one must be installed from October 30, 2025, when a new lease begins or a periodic lease is established.
- Older systems must be replaced when they reach the end of their operational life.
- By October 30, 2027, all rental properties must have a fixed cooling system installed.
Heating requirements (Residential Properties):
- From October 30, 2025, any existing fixed heater that doesn’t meet current standards must be upgraded once it reaches the end of its operational life.
Heating requirements (Rooming Houses):
- If no fixed heating system is present, one must be installed in all bedrooms by October 30, 2025.
- Any existing system in a rooming house must be upgraded once it reaches the end of its life.
While the regulations don’t dictate specific systems, reverse-cycle air conditioners and electric heating are commonly recommended for their high efficiency and dual heating/cooling functionality. These systems not only meet compliance, but also deliver improved comfort and reduced running costs.
Hot Water Systems and Shower Heads
Alongside insulation and climate control, hot water systems and shower heads will also need to meet energy-efficient standards. Landlords will need to make sure that any new system installations—or replacements at end-of-life—adhere to updated requirements.
How Do These Changes Affect You?
Landlords
The impact of these regulatory updates will depend on the age and current condition of your rental properties. Key areas to assess include:
- Whether ceiling insulation is already installed
- The effectiveness of current draught proofing measures
- The type and condition of existing heating and cooling systems
- The efficiency of hot water systems and water-saving shower heads
Upgrades are only required at specific trigger points: when a new lease is signed, an agreement becomes periodic, or when an existing system reaches the end of its operational life. However, delaying action until these moments can lead to rushed and more costly compliance.
By acting early—budgeting for upgrades, consulting with professionals, and scheduling work in advance—landlords can meet obligations with confidence and potentially reduce overall costs.
Renters
For renters, the changes represent a move toward higher quality, more livable housing:
- Better insulation and heating/cooling systems mean more stable indoor temperatures.
- Energy-efficient systems consume less power, helping to reduce household expenses.
- Reduced exposure to extreme temperatures and damp conditions contributes to overall wellbeing.
Although the rollout is linked to lease changes and system lifespans, renters can expect to see more properties meeting these improved standards over time, especially when entering new agreements.
Get Ahead of the Changes with Enviroflex
The new standards will shape the future of Victoria’s rental housing. Whether you manage a single property or multiple homes, the key to a smooth transition is preparation.
Enviroflex is here to help landlords and property managers navigate these changes. With years of experience in energy-efficiency solutions and building compliance, Enviroflex can assist you in:
- Installing ceiling insulation that meets all required standards
- Delivering professional draught proofing services to enhance comfort and energy efficiency
- Advising on and installing energy-efficient heating, cooling, and hot water systems suited to your property and budget
With trusted services and expert guidance, we take the guesswork out of compliance, so you can focus on creating better homes for your tenants.