Victoria Rental Heating Requirements: Fixed Heater Rules for Landlords

Portable heaters don't count. Under clause 14 of Schedule 4 of the Residential Tenancies Regulations 2021, every Victorian rental must have a fixed, operational heater installed in the main living area. For rental agreements entered into or converted to periodic on or after 29 March 2023, that heater must also meet an energy efficiency threshold.

What Qualifies as Compliant

The heater must be permanently installed — not a plug-in oil column or a fan heater sitting in the corner. Approved systems include:

• Split-system or non-ducted air conditioners (heat pumps) with an energy star rating of 2 stars or higher.
• Gas space heaters with an energy star rating of 2 stars or higher.
• Ducted heating systems or hydronic systems with heat register outlets serving the main living area.
• Slow-combustion wood heaters (domestic solid-fuel burning appliances).

The 2-star energy efficiency requirement applies to rental agreements entered into or converted to periodic on or after 29 March 2023. An older, lower-rated heater under a pre-2023 agreement is only grandfathered while that agreement continues — a later agreement, renewal, or periodic conversion triggers the efficiency threshold.

The Apartment Exception

Installing a split system or gas heater isn't always possible in apartment buildings. Owners corporation rules may prohibit external condenser units on balconies or walls, and heritage overlays can restrict exterior penetrations.

If installation costs exceed average domestic building norms, owners corporation bylaws prohibit external equipment, or heritage restrictions prevent wall penetrations, the landlord can rely on an exception — but only with written evidence. You need either a written refusal from the owners corporation, a cost quote showing the installation is disproportionately expensive, or a heritage overlay notice. You must also provide written notification to the prospective tenant before the lease is signed, explaining why the property relies on the alternative heating arrangement.

Without that written evidence, the exception doesn't apply, and the property is non-compliant.

What's Coming Next

On 1 March 2027, WELS 4-star shower heads become mandatory when a new rental agreement is entered into or an existing lease transitions to a periodic tenancy (upgrading from the current 3-star requirement). The Victorian Government has also announced broader energy efficiency standards for ceiling insulation and draught-sealing, slated for phased rollout from 2027, though the precise timing and thresholds haven't been finalised yet.

These future standards are separate from the current heating requirement. You don't need to pre-emptively upgrade insulation or add cooling to satisfy today's rules — but planning for the 2027 changes now can avoid a costly scramble later.

Penalties for Non-Compliance

A property without a compliant fixed heater fails the clause 14 heating minimum standard and cannot be advertised or let under Sections 65A and 65B of the Residential Tenancies Act 1997. Each offence carries up to 60 penalty units — $12,546 for an individual landlord in FY 2026–27.

If the heater breaks down mid-tenancy, it's classified as an urgent repair under Section 72 because heating is an essential service. The tenant can arrange repairs up to $2,500 themselves if you don't respond promptly, and apply to VCAT for reimbursement.

The Rental Minimum Standards in Victoria guide covers all 15 minimum standards including the heating rules, with a compliance calendar that tracks upcoming energy efficiency deadlines alongside your existing safety check schedule.

See more Victoria guides →