Victorian landlords are being swamped by media coverage painting a picture of doom and gloom with the recent changes to the Residential Tenancy Act. Between the restrictions on rent increases, changes to notices to vacate, additional fees charged to tenants, and a more complex dispute resolution process, the intention of protecting tenants in Victoria has inadvertently driven many landlords out of the market. This, in turn, has placed even more pressure on an already strained rental market.

In fact, 22,000 rental properties were lost in 2024 – a figure derived from bond data. Landlords, frustrated with the tightening regulations, opted to sell to owner-occupiers and exit the investment game. Many found the new eviction rules particularly daunting, with the prospect of drawn-out legal battles making property investment seem more trouble than it’s worth. Add concerns over increasing land tax, and the exodus of Victorian rental properties shows no signs of slowing.

BUT let’s take a step back—because many have it so wrong.

Yes, things have changed. But that’s life. Markets shift, regulations evolve, and economic landscapes transform. As someone who has invested for years, I can assure you that the property game is always changing. The rules investors played by 20 years ago, or even just 10 years ago, are not the same as today. And guess what? They won’t be the same 10 years from now either.

The key to long-term success in property investing is adaptability. The most successful investors are not the ones who throw their hands up in frustration when the rules change; they are the ones who pivot, strategise, and find new ways to make the system work for them. The big picture matters more than temporary obstacles.

Property investing is a business, not a hobby. Like any business, it requires regular financial reviews, strategic adjustments, and an understanding of the broader economic environment. Savvy investors (like business owners) asses their portfolio through the lens of profit and loss, cash flow, and overall returns. If a property no longer aligns with an investor’s financial goals, they reposition accordingly rather than react emotionally.

Regularly reviewing your portfolio is essential to ensuring you are holding the right properties to meet your goals. While legislative changes may be frustrating at first, they do not necessarily mean that property investing is no longer viable. In fact, a well-researched investor may find that despite the shifting legal framework, real estate remains a strong wealth-building vehicle.

Fast forward a few years, and today’s “new laws” will simply be the norm. The investors who successfully navigate this period of change will be the ones still reaping the rewards, while those who panic and exit the market may regret their decision when they see the long-term appreciation and rental demand continue to grow.

So the real question is—are you willing to adapt and play the long game, or will you let a bump in the road derail your entire investment strategy? Because one thing is certain: property investing will go on. The only question is whether you will still be in the game.

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