The ban on no-fault evictions officially came into effect in late November 2025, with full implementation and enforcement reaching its peak this March 2026.
Previously, a landlord could issue a “No Reason” notice to vacate at the end of a fixed-term lease. That is now illegal. If a fixed-term lease ends today, it automatically converts to a month-to-month (periodic) agreement unless the renter chooses to sign a new lease or you have a valid, specified reason to end the tenancy. These reasons now strictly include:
- Selling the property with vacant possession.
- The owner or an immediate family member moving in.
- Substantial renovations that require the property to be empty.
- Significant tenant breaches (specifically rent arrears).
The Rent Arrears Process: The “5-Strike Rule”
Since you can no longer “wait out” a bad tenant until their lease ends, you must rely on the Strike System to handle non-payment. This is a 12-month cycle that resets on the anniversary of the rental agreement.
Strikes 1 through 4: The “Pay to Stay” Safety Net
1. The 14-Day Wait: You cannot take legal action until a tenant is at least 14 days in arrears.
2.The Notice: On Day 15, you issue a Notice to Vacate (giving them another 14 days).
The Cancellation: If the tenant pays the full amount before the termination date, the notice is legally void. They stay in the property, but a “strike” is recorded on their ledger.
Strike 5: The Turning Point
If a tenant reaches a fifth instance of being 14 days late within a 12-month period, the safety net is removed.
- Even if they pay the rent after receiving the 5th notice, it does not cancel the notice.
- You can proceed directly to VCAT to seek a possession order (eviction).
How to Deal With It: Your Management Strategy
In 2026, being “relaxed” with rent collection is a high-risk strategy. If you don’t document the first four strikes properly, you can never reach the fifth strike required for an eviction.
1. Accuracy is Everything
VCAT will throw out an application if your math is off by even one day. Your ledger must be a “source of truth,” showing exactly when rent was due and when it was received.
2. Proactive Communication
We don’t wait for Day 14. We begin “soft” follow-ups on Day 2. The goal is to resolve the issue before it hits the legal threshold. If a tenant is struggling, we attempt to negotiate a payment plan before the strike system is triggered.
3. The VCAT “Reasonableness” Test
Even at the 5th strike, VCAT will only grant an eviction if they believe it is “reasonable and proportionate.” To win, you need to show:
- A consistent pattern of late payments.
- Your attempts to resolve the issue fairly.
- The financial impact the arrears are having on you.
The Bottom Line
The new legislation doesn’t mean you’re “stuck” with a non-paying tenant—it just means you have to be more disciplined. By shifting from “no-fault” to “breach-focused” management, you protect your yield and your asset.
At RENTED, we manage the entire “strike” lifecycle for our landlords, ensuring that if a tenancy does need to end, the legal groundwork is already laid.
