Victorian Rental Properties Must Have Air Conditioning by 2027 — What Landlords Need to Know
If you own a rental property in Victoria, there's a deadline you need to know about. From 1 March 2027, all new leases must include an efficient electric cooling system in the main living area. Here's everything landlords need to know — and how to get ahead of it now.
⚠ New Minimum Standard from 1 March 2027
All new rental leases starting from 1 March 2027 must have a compliant, efficient electric cooling system installed in the main living area. This is no longer optional.
What Has Changed?
The Victorian Government announced, as part of a broader suite of gas and energy measures, that from 1 March 2027 all main living areas in rental properties must have an efficient electric cooling system for any new lease. If you are signing a new lease with a tenant from that date onwards, a compliant air conditioning system in the main living area is mandatory — full stop.
What Else Is Changing?
The air conditioning requirement is part of a broader set of new minimum standards for Victorian rental properties. The full list of changes includes:
- Hot water systems must be replaced with efficient heat pumps at end of life
- Gas heaters at end of life must be replaced with reverse-cycle air conditioners
- A minimum 4-star WELS rated showerhead must be installed at the start of a new lease
- Ceiling insulation must be installed where none currently exists at the start of a new lease
- Weather seals on all external doors, windows and wall vents must be installed at the start of a new lease
Why Has This Happened?
The legislation has been welcomed by tenant advocacy groups across Victoria. With Australian summers becoming increasingly extreme, renters whose homes become unliveable during heatwaves are not only missing out on value for money — they face real health risks. The new laws are designed to address this directly and ensure all Victorians have access to a safe, comfortable home.
What Does This Mean For Landlords?
Simply put — if your rental property doesn't have air conditioning in the main living area, you need to have it installed before your next new lease after 1 March 2027. Landlords who fail to comply risk being in breach of minimum rental standards under the Residential Tenancies Act, which can result in compensation claims through VCAT.
The good news is that you have time to act — and acting now has real advantages:
⏰ Avoid the Rush
Installers will be in high demand as the 2027 deadline approaches. Book early.
▲ Higher Rent Now
A property with AC attracts better tenants and commands higher rent immediately.
⚡ VEU Rebates Available
Victorian Energy Upgrades rebates can significantly reduce your upfront costs on eligible systems.
What Type of System Do I Need?
The legislation requires an efficient electric cooling system. A reverse cycle split system air conditioner is the most common and cost-effective solution for most rental properties — it covers both heating and cooling, is energy efficient, and is straightforward to install in most homes.
⚠ Professional Sizing & Installation Required
It is essential that a licensed HVAC professional correctly sizes the unit for your space — an undersized or oversized system will not perform efficiently and may not meet the minimum standard. All split system air conditioners must be installed by a licensed HVAC installer. Do not attempt DIY installation.
Shop VEU Eligible Split Systems
FastFlex stocks a full range of VEU eligible split systems suitable for Victorian rental properties. All systems below are available for trade purchase — contact our team for pricing and availability.
Don't wait until 2027
Act Now & Get Ahead of the Deadline
FastFlex stocks a full range of VEU eligible split systems at competitive trade pricing. Contact our team to discuss the right solution for your rental property.