The Benefits of Minimum Standards Regulations for Rental Property Owners

Kathryn Docking
Jul 16
4 min read

The enforcement of Rental Minimum Standards doesn't just benefit renters. In this article we look at how complying with these and wider rental regulations such as gas, electrical and smoke alarm safety checks is a smart investment for landlords too.

Key Benefits at a Glance

Boosts property value and long-term capital growth
Helps avoid fines, legal disputes, and insurance issues
Attracts renters and reduces vacancy
Strengthens your market position and rental appeal
Future-proofs your investment in line with energy efficiency reforms

As rental regulations continue to evolve across Australia, adhering to minimum rental standards and keeping across safety checks is becoming an essential part of owning a rental property. While regulations are often viewed as a cost or a compliance burden, for landlords they can actually unlock real and lasting value for their investments.

From boosting a property's appeal to protecting your investment from legal and financial risk, the advantages of maintaining a compliant rental go beyond just ticking boxes. Maintaining minimum standards and having regular safety checks can position landlords for better returns and long-term market advantage.

Here are 5 ways that keeping a rental property compliant benefits landlords:

1. Increased Property Value

Most of the required upgrades under minimum standards — including electrical safety, heating, smoke alarms, weatherproofing, and insulation — are practical improvements that lift the overall quality and value of your property. For example, recent data shows energy efficient houses in Melbourne are fetching up to $197,000 more than non-energy efficient houses, while units averaged at $95,000 more. (ref: https://www.energy.vic.gov.au/households/electric-and-efficiency-standards-for-buildings/energy-efficiency-for-rental-properties-in-victoria).

A well-maintained, regulation-compliant home is more attractive to buyers, can justify higher rents, and is more likely to appreciate in value over time.

2. Fewer Legal and Financial Risks

With state governments, including Victoria, introducing stronger protections for renters, non-compliance now comes with real consequences — including fines, urgent repair orders, and tribunal action.

Victoria in particular has a dedicated taskforce focused on ensuring rental properties meet minimum standards and addressing rental law violations with the power to issue fines of up to $11,000 for individuals and $57,000 for companies.

Staying on top of your obligations reduces the chance of costly disputes or insurance issues, and gives you confidence your property is meeting its legal requirements.

3. Attract and Retain Great Tenants

Modern renters are increasingly looking for homes that are safe, energy-efficient, and comfortable to live in. Compliant properties often outperform others in the rental market — especially as renters become more discerning about quality and amenity.

By maintaining a home that meets or exceeds minimum standards, you increase your chances of securing long-term, respectful tenants who are more likely to care for the property and renew their lease.

4. Stand Out in a Competitive Market

Properties that align with the latest standards offer greater peace of mind to tenants resulting in these homes often being rented faster, at better rates, and with less need for discounting or negotiation.

In contrast, non-compliant properties may remain vacant longer or require urgent upgrades to meet tenant expectations and legal requirements.

5. Better Access to Insurance and Finance

Lenders and insurers often look more favourably on properties that are safe, well-maintained, and fully compliant. This can translate to smoother access to finance and better insurance terms — both of which support long-term investment planning.

Upcoming Changes: Energy Efficiency & Electrification in Victoria

In addition to existing standards, new energy efficiency reforms are on the horizon for Victorian rental properties. These changes are designed to reduce household emissions, improve comfort, and support the shift away from gas reliance.

Here’s what’s changing:

From January 2027:

All new homes built in Victoria must be all-electric — gas connections will no longer be permitted.

From March 2027:

If a gas appliance (such as a heater or hot water unit) in any home — including existing rental properties — breaks down beyond repair, it must be replaced with an electric model.
At the start of a new lease, rental properties must have energy efficient cooling in the living area, 4-star shower heads and ceiling insulation.

From July 2027:

Rental properties must have draught-proofing installed on external doors, windows, and wall vents at the start of a new lease.

These reforms will impact how rental property owners manage maintenance and upgrades, particularly for older homes. Planning ahead and transitioning to electric systems now can help spread the cost, reduce tenant running costs, and improve the overall sustainability of your asset.

The Bottom Line

Meeting minimum housing standards isn’t just about compliance — it’s about protecting your investment, future-proofing your property, and delivering a better experience for tenants. In many cases, the long-term financial and reputational benefits far outweigh the upfront costs.

If you're unsure whether your property meets current or upcoming standards, Taskforce can help. Our qualified, insured tradespeople are ready to carry out safety checks, maintenance work, and energy-efficient upgrades to ensure your property remains compliant, valuable, and rental-ready.