Victorian Rental Properties Must Have Air Conditioning by 2027 — What Landlords Need to Know
What Has Changed?
The Victorian Government announced, as part of a suite of measures on gas and energy use, that from 1 March 2027 main living areas must have an efficient electric cooling system for new leases starting from that time.
This means that if you are signing a new lease with a tenant from 1 March 2027 onwards, your rental property must have a compliant air conditioning system installed in the main living area — full stop. It is no longer optional.
What Else Is Changing?
The air conditioning requirement is just one 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 Water Efficiency Labelling and Standards (WELS) rated shower head must be installed at the start of a new lease
- Ceiling insulation must be installed at the start of a new lease where there is no ceiling insulation already in place
- 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. Tenants Victoria Acting CEO Cameron Bloye noted that for too long renters have sweltered in summer heat with no relief, and that the new minimum standard for air conditioners will be welcomed by renters, especially on hot days and oppressive nights.
With Australian summers becoming increasingly extreme, renters whose homes become unliveable for weeks at a time during heatwaves are not getting good value for money on their rent — and also risk impacts on their health. The new laws are designed to address this directly.
What Does This Mean For Landlords?
Simply put — if your rental property doesn't have an air conditioner in the main living area, you need to get one installed before your next new lease commences after 1 March 2027. Landlords who fail to comply risk being in breach of the 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 rather than waiting until 2027 has real advantages:
- Avoid the rush — installers will be in high demand as the deadline approaches
- Attract better tenants sooner — a property with air conditioning commands higher rent and attracts more applicants right now
- VEU rebates may be 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. A split system covers both heating and cooling, is energy efficient, and is straightforward to install in most homes.
At Fastflex Heating & Cooling Supplies, we stock a full range of compliant split systems from trusted brands including Fujitsu General, Mitsubishi Heavy Industries, and Hisense — all suitable for meeting the new Victorian rental minimum standards.
Act Now — Don't Wait Until 2027
With the deadline approaching and every Victorian landlord needing to comply, demand for split system installations is only going to increase. The time to get ahead of it is now.
Fastflex Heating & Cooling Supplies stocks a full range of split systems suitable for rental properties at competitive pricing. Contact our team today to discuss the right solution for your property.