Energy Efficiency Rules for Rental Properties are Changing, here’s what you need to know
Coming regulation changes can be seen as a compliance burden but if you go about it the right way you can make your property portfolio more appealing.
More comfortable and sustainable homes help to improve rental yields by making properties more comfortable and keeping landlords ahead of the curve as minimum energy efficiency standards for rentals start rolling out across the country.
Opportunity to help your property owners:
Improve the rental yield, make properties more rentable by being energy efficiency aware and marketing those features
Understand coming legislation, staying ahead of the curve helps you make good decisions when you’re doing maintenance and improvements in the meantime
Help landlords distribute costs over time is better for cashflow
Help purchasers make informed decisions when buying investment properties and
Help vendors make their properties more appealing to investors
What’s Changing: Efficiency Compliance for Rentals is Growing
Across Australia, standards are moving beyond “basic habitability” and towards rental property compliance that includes efficiency, health and comfort.
NSW has already updated water efficiency rules — from 23 March 2025, with rental properties requiring dual-flush toilets, efficient taps and showerheads, and no leaks, or landlords won’t be able to pass water charges onto tenants.
Victoria is going further, with mandated minimum efficiency standards for rentals from 2027: ceiling insulation, 4-star showerheads, draught-proofing, and efficient heating, hot water, and cooling by 2030.
ACT has introduced minimum ceiling insulation for rentals.
South Australia and Queensland have strengthened minimum housing standards and both states are considering rental energy efficiency upgrades.
Add to this the Healthy Homes for Renters coalition, a group of 90+ organisations including ACOSS, CHOICE, and St Vincent de Paul, pushing for a national standard, and it’s clear where things are heading.
This isn’t a matter of if, but when.
More Comfortable and Energy Efficient properties create a better rental yield
The rental market is changing. Savvy renters are happy to pay a premium to be more comfortable and lower their ever-increasing energy bills
Landlords that are across this have an advantage in getting their property rented quicker for a better yield.
Is it hard to make a home more energy efficient?
The good news for landlords is that many upgrades are simple and affordable.
Future standards focus on practical fixes like draught-proofing, efficient showerheads, and insulation. If landlords start addressing these during routine maintenance or renovations now, they’ll spread costs over time instead of being hit by a compliance deadline later.
How does Energy Efficiency Compliance Effect Agents?
For real estate agents and property managers, efficiency standards bring both responsibility and opportunity:
More compliance to manage at lease renewals and inspections.
A bigger advisory role, guiding landlords on future upgrades.
Documentation and record-keeping to prove rental property compliance.
And an opportunity to add value by helping landlords plan ahead and make smart, staged upgrades now.
Top 5 Easy Energy Efficiency Wins to Start now
Seal Draughts
Add seals to doors, windows, helping to stabilise internal temperatures making heating and cooling systems more efficient.Upgrade Showerheads & Taps
Swap in 4-star WELS-rated fixtures. Cheap, quick, and effective.Install Insulation
Ceiling insulation makes one of the biggest differences to energy bills and comfort.Plan Smart Replacements
When hot water, heating, or cooling systems reach end of life, replace them with efficient models.Add Shading to Windows
Simple External shading (hoods, awnings or external blinds) keeps homes cooler and reduces reliance on air conditioning.
Here’s Where to start on the energy efficiency journey
The smartest approach for landlords is to start early with small, incremental improvements, reducing stress when compliance deadlines arrive. These upgrades deliver real benefits to tenants and give your property a competitive edge in the rental market and will improve your rental yield.
We can help create more efficient homes
In collaboration with our sustainability consultants, NININ Studio, we offer two tailored services to help landlords stay ahead: a Property Inspection & Sustainability Service to assess performance and plan practical upgrades, and a Design & Sustainability Consultation for major renovations, ensuring efficiency is designed in from the start.
Want to know more? Talk to us now.
Want to dig deeper into sustainable design? Check out our blog: Decoding Sustainable Homes: BASIX, NatHERS, Passive House and Passivhaus Explained.
