Published: 25 November 2025 | Reading Time: 5 minutes | Location: Bass Coast, Victoria

Understanding Victoria's New Rental Laws (November 2025)

The Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill 2024 introduces significant changes that every Bass Coast landlord must navigate from today onwards. Whether you own a beachside rental in Inverloch, a family home in Wonthaggi, or a coastal property in Cape Paterson, understanding these Victorian rental reforms is crucial for your investment strategy.

Key Changes Affecting Bass Coast Landlords Now:

Extended Notice Periods for Victorian Landlords:

Property owners in Inverloch, Cape Paterson, and Wonthaggi must now provide 90 days' notice for rent increases and notices to vacate—up from the previous 60-day requirement. This extended timeline significantly impacts sale planning, particularly for coastal properties where seasonal market timing is critical.

End of 'No Reason' Evictions in Victoria:

Perhaps the most significant change for Bass Coast landlords is the removal of "no grounds" notices to vacate at the end of fixed-term leases. Every eviction must now be justified with a valid reason, such as the owner moving in, major renovations, or selling with vacant possession.

Victorian Rental Bidding Ban:

All forms of rental bidding are now prohibited across Victoria. Landlords and agents in Inverloch, Cape Paterson, and Wonthaggi cannot accept offers above the advertised rent, and properties must be advertised with a fixed price rather than a range.

Compliance Before Marketing Investment Properties:

Rental properties in the Bass Coast must meet all minimum standards before being advertised—not just before tenants move in. Non-compliant properties in Inverloch, Cape Paterson, or Wonthaggi cannot be marketed, with substantial penalties for breaches.

Annual Safety Obligations for Victorian Rental Properties:

Mandatory annual smoke alarm safety checks by licensed professionals are now required for all rental properties across the Bass Coast region, regardless of when the tenancy agreement was signed.

December 2025 Deadline: Window Covering Requirements

From 1 December 2025—just days away—all corded internal window coverings in Bass Coast rental properties must have safety anchors installed to prevent loose loops. Investment properties in Inverloch, Cape Paterson, and Wonthaggi without these safety measures will be non-compliant and cannot be advertised for rent.

March 2027: Energy Efficiency Requirements Hit Coastal Properties

The Victorian rental reforms don't stop in 2025. From March 2027, a phased rollout of energy efficiency standards begins, requiring Bass Coast landlords to invest in:

• Ceiling insulation where none exists (common in older Inverloch and Cape Paterson properties)
• Energy-efficient cooling in main living areas (minimum 3-star fixed cooling or 2-star central cooler)
• Replacement of outdated heating and hot water systems with energy-efficient electric alternatives when systems reach end-of-life
• Weather seals on external doors, windows, and unsealed wall vents (particularly important in coastal Inverloch and Cape Paterson properties exposed to sea air)
• 4-star water-efficient shower-heads



The Victorian Government estimates these upgrades could cost landlords approximately $5,000 per property, though Bass Coast property managers suggest the figure could be significantly higher for older coastal properties requiring substantial weatherproofing and insulation upgrades.

Why Record Numbers of Victorian Landlords Are Choosing to Sell

The rental law reforms aren't happening in isolation. Victorian landlords in Inverloch, Cape Paterson, Wonthaggi, and across the Bass Coast are facing a confluence of financial pressures that's driving unprecedented numbers to exit the investment property market.

The Landlord Exodus: Victorian Property Investment Data

Recent data paints a stark picture of the statewide landlord exodus affecting Bass Coast property investors:

• 41,000+ rental properties were sold across Victoria in the 12 months to June 2025
• In the March 2025 quarter alone, there were 3,398 more bond refunds than new bond lodgements—meaning thousands of Victorian rental properties left the market in just three months
• 16.7% of investors sold at least one property in the past year, up from 14.1% the previous year
• Only 42% of sold properties remained in the rental pool, with 37% purchased by owner-occupiers and 25% by first-home buyers

This trend is evident across the Bass Coast, with local agents in Inverloch, Cape Paterson, and Wonthaggi reporting increased enquiries from landlords considering their exit strategy.

Financial Pressures Facing Bass Coast Landlords

While the Victorian rental reforms dominate headlines, it's the cumulative burden of multiple cost increases that's breaking the camel's back for Inverloch, Cape Paterson, and Wonthaggi property investors:

Victoria's Land Tax Restructure Hits Regional Investors:

Victoria slashed the land tax-free threshold for investors from $300,000 to just $50,000, hitting Bass Coast landlords particularly hard. Many Inverloch and Cape Paterson property owners who never previously paid land tax now face annual bills, with some seeing their land tax double or triple overnight—a significant blow to coastal property investment returns.

Rising Holding Costs for Investment Properties:

Interest rates, while stabilising, remain significantly higher than in recent years. Combined with increased council rates in Bass Coast Shire, insurance premiums that have "gone through the roof" (particularly for coastal properties in Inverloch and Cape Paterson), and maintenance costs that have skyrocketed since the pandemic, the monthly carrying costs of Bass Coast investment properties have reached unsustainable levels for many landlords.

Victorian Compliance Costs Keep Rising:

The new rental reforms add layers of compliance expenses for Bass Coast landlords. From mandatory annual smoke alarm checks to window covering safety upgrades, minimum standards inspections (costing around $150 per inspection in the Inverloch area), and the looming energy efficiency requirements, these costs continue to mount for investment property owners.

VCAT Delays Impact Victorian Landlords:

Disputes over rent arrears, property damage, or evictions can take months to be heard at the Victorian Civil and Administrative Tribunal, and even longer to enforce, creating cash flow challenges for Bass Coast landlords dealing with problematic tenancies in Inverloch, Cape Paterson, or Wonthaggi.

Planning Challenges Under Victoria's New Notice Requirements

The 90-day notice period creates significant timing complications for Bass Coast landlords planning to sell. Consider this common scenario for an Inverloch investment property owner: they want to sell in the strong January-February coastal market and need the property vacant by early December for presentation works. Under Victoria's new rental laws, they must serve notice by early September.

However, tenants receiving notice can provide their own 14-day notice and vacate by mid-September—potentially leaving the Inverloch or Cape Paterson property empty for over three months and creating a substantial income loss during that period. This forces Bass Coast landlords into difficult decisions about timing and market conditions.

When Selling Your Bass Coast Investment Property Makes Financial Sense

For many Victorian landlords in Inverloch, Cape Paterson, and Wonthaggi, the calculation has become straightforward: the combination of reduced returns, increased compliance burden, rising holding costs, and reduced flexibility under Victoria's new rental laws has made selling the logical choice.

Key Considerations for Bass Coast Landlords

Negative Cash Flow on Investment Properties:

With mortgage repayments up, Victoria's land tax substantially higher, and compliance costs mounting, many Bass Coast properties that were once positively or neutrally geared are now deeply negative. When you're "digging deep into your own pocket each month" to maintain an Inverloch or Cape Paterson investment property, the fundamental investment proposition has broken down.

Capital Gains Position for Victorian Property Investors:

Investors who purchased Bass Coast properties during the market peaks of 2021-2022 may now be facing limited capital gains or even losses. For Inverloch, Cape Paterson, and Wonthaggi landlords in this position, selling before further market corrections may preserve capital better than holding through additional value declines.

Reduced Flexibility Under Victorian Rental Reforms:

The removal of "no grounds" evictions means Bass Coast landlords have lost a key mechanism for regaining possession of their property. This reduces strategic flexibility and makes exit timing more complicated for investment properties in Inverloch, Cape Paterson, and Wonthaggi.

Victorian Regulatory Risk Continues:

With further rental reforms continuing through 2027 and 2030, Victoria's regulatory environment shows no signs of stabilising. Many Bass Coast investors cite "uncertainty around where they're going to go next" as a primary concern when considering whether to hold or sell their Inverloch, Cape Paterson, or Wonthaggi investment properties.

Alternative Investment Options for Bass Coast Landlords



Some Victorian landlords aren't leaving property investment entirely—they're relocating their capital to other states with more investor-friendly frameworks. Queensland, in particular, has seen increased interest from Victorian investors seeking better returns and reduced regulatory burden compared to Victoria's increasingly restrictive rental laws.

Impact on Inverloch, Cape Paterson & Wonthaggi Rental Markets

The landlord exodus has significant implications for rental availability across the Bass Coast. With vacancy rates in regional Victoria under 1.5%—well below the 3-4% considered healthy—and rental supply shrinking while demand surges in coastal areas like Inverloch and Cape Paterson, the very policies designed to protect tenants may be inadvertently making their situation worse.



Private landlords provide over 90% of Victoria's rental supply. As they exit the Bass Coast market, the rental pool in Inverloch, Cape Paterson, and Wonthaggi contracts, competition intensifies, and rents continue their upward trajectory. It's an outcome nobody wanted, but one that appears increasingly inevitable given current Victorian policy settings.

Should You Sell Your Inverloch, Cape Paterson or Wonthaggi Investment Property?

Bass Coast landlords face a crucial decision point. Victoria's rental reforms effective from 25 November 2025 aren't just regulatory adjustments—they represent a fundamental shift in the risk-return profile of residential property investment in Inverloch, Cape Paterson, Wonthaggi, and across the Bass Coast region.

For landlords already struggling with negative cash flow on their Bass Coast investment properties, mounting compliance obligations under Victoria's new rental laws, and reduced strategic flexibility, selling may offer a pathway to exit an increasingly untenable position before conditions deteriorate further. With 2027's energy efficiency requirements on the horizon and Victorian policy uncertainty showing no signs of abating, the question for many Bass Coast landlords isn't whether to sell, but when.

Exit Strategy for Bass Coast Investment Properties

The data shows Victorian landlords are already voting with their feet. In record numbers, property investors in Inverloch, Cape Paterson, Wonthaggi, and across Victoria are choosing to exit a market that no longer offers the returns or flexibility that once made residential property investment attractive. For Bass Coast landlords considering their options, understanding both the new Victorian regulatory environment and the financial realities has never been more critical.

Key Questions for Bass Coast Landlords:

• Is your Inverloch, Cape Paterson, or Wonthaggi investment property currently negatively geared?
• Have you calculated the cost of compliance with Victoria's 2025 rental reforms and 2027 energy efficiency requirements?
• Does your exit strategy account for the new 90-day notice periods under Victorian rental laws?
• Have you obtained a current market appraisal for your Bass Coast investment property?

Expert Guidance for Bass Coast Landlords

Navigating Victoria's rental law reforms and deciding whether to hold or sell your investment property in Inverloch, Cape Paterson, or Wonthaggi requires local expertise and current market knowledge. Understanding Bass Coast property values, rental yields, and buyer demand in the current market is essential for making informed decisions about your investment strategy.

At Inverloch @realty, we specialise in the Bass Coast property market and have extensive experience helping landlords navigate complex decisions about their Inverloch, Cape Paterson, and Wonthaggi investment properties. Whether you're considering selling due to Victoria's new rental reforms or exploring your options, our team provides:

• Current market appraisals for Bass Coast investment properties
• Strategic timing advice for selling in the Inverloch, Cape Paterson, and Wonthaggi markets
• Compliance guidance on Victoria's rental law reforms
• Data-driven insights on local rental yields and capital growth prospects
• Marketing expertise that reaches buyers across metropolitan Melbourne and regional Victoria
• Our digital-first approach and extensive social media reach (30,000+ followers) ensures your Bass Coast property receives maximum exposure to qualified buyers, whether they're local owner-occupiers, sea-changers from Melbourne, or investors from outside Victoria seeking better opportunities than the increasingly restrictive Victorian rental market offers.

Contact Inverloch @realty for Expert Bass Coast Property Advice

📞 Phone: 0472 523 445
📧 Email: leo@atrealty.com.au
🌐 Website: inverlochatrealty.com.au

📍 Servicing: Inverloch, Cape Paterson, Wonthaggi, Venus Bay & Bass Coast

Don't let Victoria's rental law reforms catch you unprepared. Contact the Bass Coast's award-winning real estate agency today for personalised advice about your Inverloch, Cape Paterson, or Wonthaggi investment property.