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New minimum energy efficiency standards for rental properties
New minimum energy efficiency standards for rental properties come into effect in phases from 1 March 2027.
They cover heating, cooling, hot water and shower heads, ceiling insulation and draughtproofing. They follow consultation on draft regulations in 2024 and are part of wider electrification regulations for Victoria.
The new standards may help drive down power bills for renters, keeping their homes more comfortable year-round, and cut emissions.
Timing of new energy efficiency standards
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Date effective
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Change
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Description of change
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From 1 March 2027
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Energy-efficient heating and hot water systems |
When existing heating and hot water systems permanently fail, rental providers must replace them with energy efficient ones.
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Energy- efficient ceiling insulation and shower heads
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At the start of a new rental agreement – or conversion to a month-by-month agreement – rental providers must install:
- 4-star showerhead/s
- ceiling insulation in spaces where none exists.
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From 1 March 2027
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Energy – efficient cooling
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At the start of a new rental agreement – or conversion to a month-by-month agreement – rental providers must install:
- Energy – efficient cooling in the main living area
The new cooling standard will require that a 3-star fixed energy efficient cooling appliance or 2-star equivalent central cooler be installed in the main living area of a rental property.
If there is an existing fixed non-energy efficient cooling appliance, it must be upgraded to an energy efficient system at the end of life of the existing appliance.
From 1 July 2030, all rental properties must have energy-efficient cooling in the main living area. This will apply regardless of the date a rental agreement was entered into or commenced unless a specific exemption applies.
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| From 1 July 2027
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Draughtproofing |
At the start of a new rental agreement, or conversion to a month-by-month agreement, rental providers must draughtproof all external doors, windows and unsealed wall vents.
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Rebates
Rental providers will be able to access rebates to make all required upgrades through the Victorian Energy Upgrades program. Note: Rebates for ceiling insulation are expected to be available by early 2026.
Exemptions
A range of exemptions apply for situations where compliance with the standards is not possible or would incur unreasonable costs. For example, rental apartments where heating, cooling or hot water is supplied through centralised systems.
Find the full list of exemptions in relation to each standard set out in Schedule 4 of the regulations.
Download a copy of the new Regulations:
Heating standard for rooming houses
From 1 December 2024, if a rooming house operator installs a heater in a resident’s room, it must be a ‘fixed heater’ secured to a wall, floor or ceiling of the room.
From 1 December 2025, rooming house operators must install a fixed heater secured to a wall, floor or ceiling of each resident’s room.
A ‘fixed heater’ is either:
- an electric ducted heating or electric hydronic heating system; or
- an electric non-portable heater; or
- a non-ducted air conditioner or heat pump with a 2 star or above heating rating.
From 1 December 2030, rooming house operators must provide an energy efficient fixed heater secured to a wall, floor or ceiling in each resident’s room.
An ‘energy efficient fixed heater’ is either:
- an electric non-portable, non-ducted air conditioner or heat pump with a 2 star or above heating rating, or
- an electric ducted air conditioner or heat pump with a Heating Seasonal Performance Factor of 3.2 or above.
Existing gas ducted or gas hydronic heating systems in good working order do not need to be removed until they reach the end of their life.
Rooming house operators may be exempt from part or all of the standard if they have existing fixed heating, or if installation would not be permitted due to heritage laws or owners corporation rules.
Blind and curtain cords standard for residential rental properties
Unsecured blind or curtain cords pose a serious risk to children, who can get tangled in loose cords.
From 1 December 2025, all corded internal window coverings in residential rental properties must have an anchor installed to ensure the cords are secured or tensioned and can’t form a loose loop.
To help make blind cords and curtains safer in your home, we provide free curtain and blind cord safety kits. You can order a free kit from us or buy one at a hardware store.
Existing rental property and rooming house minimum standards
The new Regulations build on the existing minimum standards for rental properties and for rooming houses.
For more information about the existing minimum standards for rental properties, go to:
If you want to know what the law says about the existing minimum standards for rooming houses, go to: