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Rental Minimum Energy Efficiency Standards (2027): What Property Managers and Landlords Need to Know
June 17, 2026 
If you’re wondering whether you need to rush and replace everything now, the short answer is no.
But doing nothing is probably not the smartest move either.
Like most changes to rental regulations, these requirements are designed to improve the comfort and efficiency of Victorian homes. Over time, we’ll likely see higher expectations around heating, cooling, hot water systems, insulation and draught sealing.
The good news?
Most landlords won’t need to spend tens of thousands of dollars overnight.
The even better news?
If you plan ahead, many of these upgrades can be tackled gradually and often with the help of rebates and government incentives.
In this guide, we’ll break down what is currently proposed, what it means for your property, and how you can stay ahead of the changes.
What are the 2027 Rental Minimum Energy Efficiency Standard Changes
Starting from the 1st of March, 2027, Victoria will begin introducing the new energy efficiency requirements for rental properties.
The aim is simple.
Safer homes.
Lower energy bills.
More comfortable living conditions for renters.
While minimum standards have traditionally focused on safety and habitability, these changes are more about how efficiently a home performs.
The areas affected in these changes include:
- Heating.
- Cooling.
- Hot water systems.
- Shower heads
- Ceiling insulation.
- Draught proofing.
Rental Energy Efficiency Standard Changes from 2027 | Summary Table
| Topic | Trigger | New Standard |
|---|---|---|
| Heating | When the current unit fails | All rental properties must have fixed heating systems (currently in place).
Heating systems must be fixed electric 2-star heaters with at least 1 outlet in the main living area that are either:
|
| Cooling | All new rental agreements or conversions to a periodic agreement from 01/03/2027
Or By 01/06/2030 Or if there is already a fixed cooling system, then when that unit fails |
All rental properties must have a cooling system installed.
The cooling system must be fixed, energy efficient, and have at least 1 outlet in the main living area. Systems can be either:
|
| Hot Water System | When the current unit fails | The hot water system will need to be upgraded to an electric heat pump system. |
| Shower Heads | All new rental agreements or conversions to a periodic agreement from 01/03/2027 | All rental properties must have energy-efficient shower heads (4-star requirement). |
| Ceiling Insulation | All new rental agreements or conversions to a periodic agreement from 01/03/2027 where there is no ceiling insulation and the building is a Class 1 building | Ceiling insulation must be installed by a qualified installer and have a minimum R5.0 rating. |
| Draughtproofing | All new rental agreements or conversions to a periodic agreement from 01/06/2027 | Draughtproofing via seals or weather-stripping products are to be fitted to all gaps around external doors, windows and unsealed wall vents. |
Final Thoughts
The 2027 changes shouldn’t be something landlords fear.
They’re simply the next step in the evolution of Victorian rental properties.
The best approach isn’t panic.
It’s preparation.
At Compliance Fixer, we’re already helping landlords and property managers prepare for the future through heating and cooling upgrades, hot water replacements and ongoing compliance services.
Because staying ahead of changes is always easier than scrambling to catch up.
Frequently Asked Questions
Not necessarily.
Many of the proposed requirements are expected to apply when systems reach the end of their life or when a new tenancy begins.
Yes, cooling requirements will apply to the main living area.
No.
At this stage, solar panels are not included in the proposed minimum standards.
Yes.
Programs such as Victorian Energy Upgrades (VEU) may help reduce the cost of some improvements.
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June 18, 2026
June 17, 2026 
