Key takeaways
The Victorian Greens have proposed landlord licensing and a three-strikes system. This is a political proposal, not an existing requirement for ordinary residential landlords.
Serious and repeated failures to provide safe housing deserve consequences, with clear rules and a fair review process.
If additional uncertainty discourages rental investment, it could reduce choice for tenants and put upward pressure on rents.
Any licensing scheme must explain how existing tenants would be protected if their landlord lost the right to lease.
Victorian landlords could be required to hold a licence and face a three-strike rule that would strip them of their right to rent out properties under a Greens proposal unveiled ahead of the upcoming state election.
While the plan aims to hold landlords accountable for breaching their obligations, this ridiculous proposal would add another layer of uncertainty for property investors and worsen Melbourne’s rental pressures.
Tenants deserve safe, well-maintained homes, but any policy that discourages responsible investors from providing rental accommodation risks leaving those tenants with fewer choices and higher rents.
What is being proposed?
The Victorian Greens say landlords should have to hold licences in order to rent out properties in their latest election pledge.
Greens spokesperson for renters’ rights Gabrielle De Vietri told Charlie Pickering the policy would protect renters from “substandard housing” but, when asked by the media, could not answer how this would impact housing supply in Victoria.
“Landlords have power over their tenants, and they should prove they are responsible,” Ms de Vietri said. “If you can’t provide a safe home then you shouldn’t be a landlord.”
The licence would operate under a three-strike process, under which landlords could lose their right to lease if they breach renters’ rights multiple times.
Its responsibilities would also include rent-worthiness checks, energy-efficiency disclosures for advertised leases, independent inspections and penalties for failures to meet minimum standards or carry out repairs.
The Greens estimate that $50 million would be needed to establish the regulator and oversee the licensing system alongside their other proposed rental reforms.
Greens spokesperson for renters Gabrielle de Vietri summed up the party’s position: “If you can’t provide a safe home then you shouldn’t be a landlord.”
I agree that providing a safe home is a basic responsibility of property ownership. My concern is how a licensing system would operate and whether its consequences would extend to tenants and responsible investors.
The report places licensing within a broader Greens package that also includes a rent freeze and rent caps.
In my view, the Greens have consistently taken an adversarial approach to private property investors, yet their proposals have failed to explain how sufficient alternative rental accommodation would be delivered if those investors withdrew.
Until they can demonstrate a practical replacement at the required scale, discouraging the people who provide rental homes would only make life harder for tenants – the very people they profess to be protecting.
The details will matter
A three-strikes slogan is easy to say and may sound politically appealing to some, but a workable policy needs to distinguish between the seriousness of different breaches.
Repeatedly ignoring a dangerous electrical fault warrants a very different response from a record keeping error that is promptly corrected.
Any scheme would need clear definitions of a strike, an independent process for determining a breach, appropriate appeal rights, and rules on how long strikes remain on a landlord’s record.
It would also need to distinguish a complaint from a proven breach, and explain whether several issues arising from one incident could count as multiple strikes.
Those safeguards would help tenants understand their rights and give responsible landlords confidence about their obligations.
The proposed rent-worthiness checks would also need clear criteria and a practical inspection process, including an explanation of how they would interact with existing minimum standards and safety checks.
Most importantly, the policy needs a practical answer for tenants whose landlord loses a licence. Their housing security should be central to its design.
Victoria already has substantial rental obligations
This proposal arrives alongside further changes to Victoria’s existing rental laws.
Consumer Affairs Victoria confirms that reforms commencing on 13 October 2026 include requirements for evidence before bond claims, recordkeeping to demonstrate compliance with minimum rental standards, and the extension of two-yearly gas and electrical safety checks to all rental properties.
Earlier changes already require properties to meet minimum standards when advertised, prohibit rental bidding and restrict notices to vacate to valid grounds.
Minister for Renters Tim Richardson is reported to have said that Victoria’s now-permanent taskforce had issued more than $900,000 in fines to landlords and agents.
That shows enforcement is already occurring, although the figure alone cannot tell us how effectively renters’ problems are being resolved.
These protections have a purpose, and investors should take them seriously, however, before adding another regulatory structure, I would like to see a clear explanation of where existing enforcement is failing and why licensing would deliver better results.
An additional application process will only help tenants if it leads to safer homes, timely repairs and meaningful consequences for persistent misconduct.
I would want the proposed regulator assessed against practical outcomes such as how quickly serious hazards are fixed and whether tenants can raise concerns without fear, alongside the cost of administering the scheme.
How this could affect rental supply
The uncertainty created by silly proposals like this could easily push marginal investors towards selling, particularly owners with thin financial margins.
If rental supply falls relative to demand, tenants generally face fewer choices and greater pressure on asking rents which is the risk I see in a poorly designed licensing system.
What property investors should do
I would avoid making a major investment decision on the strength of a political headline.
Renters deserve safe homes and reliable repairs, and responsible investors benefit from a market where those standards are enforced fairly.
Victoria needs a policy framework that gives both tenants and responsible property owners confidence to plan for the future.
For investors with a long-term perspective, Melbourne’s changing rental market creates opportunities to buy well while others sit on the sidelines.
Reduced competition from investors can give buyers more choice and greater negotiating room, while continued demand for rental accommodation could support rental income over time.
Of course, rising rents alone won’t make every property a good investment. The opportunity lies in selecting an investment-grade asset in a location people want to live, with enduring appeal to both tenants and future owner-occupiers.
I still believe Melbourne deserves a place on the radar of strategic investors.
I’ve found that attractive buying opportunities often emerge during periods when confidence is subdued. Investors who understand the risks and have the capacity to hold through changing conditions can position themselves for the next phase of the market.
For existing owners, this is also a useful time to review your portfolio, assess your properties’ performance and ensure your finances support your longer-term goals.
If you’d like clarity about how these changes affect your position, why not speak with a Wealth Strategist at Metropole. We’ll help you look at your property investments within the context of your finances, goals and stage of life, so you can make informed decisions about your next steps.
Whether you’re considering your next purchase or reviewing the properties you already own, a personalised Strategic Property Plan can help you move forward with greater confidence and build wealth that supports your family for years to come. Click here now and lock in a time for a chat.
