Minimum requirements for energy efficiency in Victorian properties for 2025. Landlord or tenants: know your rights.
In Victoria, the minimum rental standards for cleanliness, privacy, security, and amenities in rental properties and rooming houses are set out in the Residential Tenancies Regulations 2021 and the Residential Tenancies (Rooming House Standards) Regulations 2023, both of which are established under the Residential Tenancies Act 1997.
In accordance with the Victorian Government’s commitments outlined in the Gas Substitution Roadmap Update and its goal of achieving net zero emissions by 2045, new minimum standards for energy efficiency aim to provide renters and rooming house residents with comfortable and energy-efficient living conditions.
The implementation of this new legislation will be staggered from October 24 through 2 October 25, depending on active rental agreements.
Areas in the home that are impacted by the minimum standards legislation.
Introducing minimum standards for ceiling insulation, draught sealing, hot water systems and shower heads, heating and cooling and blind cords for rental homes, along with heating standards in rooming houses will also seek to support the above Government objectives for the Residential Tenancies Regulations and the Rooming House Regulations. The proposed minimum standards also align with broader Victorian Government policies such as the Gas Substitution Roadmap and the transition towards net zero emissions by 2045.
Specifically, the objectives of the proposed additional minimum standards are to:
• improve renter health, wellbeing, comfort and safety
• reduce renter energy bills
• reduce greenhouse gas emissions, supporting the energy transition and decarbonisation of the rental sector.
“The Residential Tenancies and Residential Tenancies (Rooming House Standards) Amendment (Minimum Energy Efficiency and Safety Standards) Regulations 2024 (the proposed Regulations) will prescribe minimum standards for ceiling insulation, draughtproofing, hot water systems, cooling, and the uplift of current standards for heating and shower roses in rental properties; a new heating standard for rooming houses, and a new safety standard for blind cord anchors to apply to all rental properties.” (source)
Across the proposed standards, trigger points considered include:
• a specified point in time
• the point at which a new lease commences
• at the end of the life of an existing appliance.
Where properties will need to comply with a minimum standard upon a new lease coming into effect, annual turnover in rental leases was determined using data and bond requests from the Department of Families, Fairness and Housing’s quarterly rental reports.
Where properties will need to install appliances to comply with the proposed minimum standards at the end of the existing appliance’s life, assumptions were made regarding the life expectancy of the relevant appliances.
Talk to your real estate agent about this. There could be significant energy savings in it for you.
Landlords, did you know that if your investment property doesn’t have a cooling appliance in the main living area, you may not be able to release your property until one is installed? A lack of cooling in the main living area is now non-compliant, and you’ll need to install one that meets minimum standard requirements. But don’t worry – there are incentives to help with the costs through the VEU. Learn more, here.
Maintain current heating standard and introduce comparable cooling standard. There must be a fixed minimum 2 star rating gas or electric room heater in the main living room. There must also be a fixed minimum 2 star rating electric room cooler in the main living room, or a central cooler with a total cooling season performance factor of 3.5 minimum with an outlet in the main living room.
Minimum 2 star, electric-only heating and cooling. Under this option, there must be a fixed minimum 2 Star rating electric room heater in the main living room or a central heater with a heating seasonal performance factor of 3.5 minimum with an outlet in the main living room. There must also be a fixed minimum 2 star rating electric room cooler in the main living room or central cooler of 3.5 minimum with an outlet in the main living room. Only electric appliances are considered compliant under this option.
Whether you’re a tenant, landlord, or agent – if you believe your rental property or room falls below the new minimum standards, you may be eligible for energy efficiency upgrades.
We recommend you call our energy-saving experts, who can help you assess your options. Alternatively, the Consumer Affairs website has information on renter’s rights and assessing whether your property does not meet minimum standards—check it out.
If you’re interested in upgrading your ceiling insulation, draught proofing, hot water systems, and shower heads all included within this new legislation – Energy Makeovers offers these services inclusive of VEU incentives. Click the appropriate link below, or Give us a call.
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