Most landlords budget carefully for the mortgage, rates and insurance, then treat maintenance as whatever comes up. That works fine until the hot water service dies in July and the renter is entitled to have it fixed straight away.
From 13 October 2026 the fixed part of that budget also gets bigger. Gas and electrical safety checks every two years now apply to all Victorian rentals, whatever date the lease started (Consumer Affairs Victoria).
Here’s how to work out what to set aside, and where the money tends to go.
How much to set aside each year
The most common starting point is the 1% rule: budget about 1% of the property’s value each year for maintenance. Landlord insurers Terri Scheer and GIO both use it as a rule of thumb.
It’s a floor, though. Terri Scheer notes the rule was designed for owner-occupied homes, and older or run-down properties may need closer to 2%.
So for an $800,000 Melbourne rental, plan on about $8,000 a year. If it’s a 1960s brick veneer or an old weatherboard, $12,000 to $16,000 is more realistic.
The spend won’t be even. Some years you’ll barely touch it. Then the roof needs work, or the heater fails, and you use three years’ worth at once. That’s why it pays to hold it as a reserve instead of spending it as it comes in.
The fixed costs: compliance you can’t skip
These are the jobs you know are coming. Price them once, book them on a schedule and treat them as a set yearly cost.
- Smoke alarm check every 12 months. Required for all rentals since November 2025. We covered the detail in our smoke alarm and electrical safety guide.
- Gas safety check every 2 years by a licensed or registered gasfitter, and electrical safety check every 2 years by a licensed electrician. All rentals from 13 October 2026.
- Minimum standards records. From 13 October 2026 you or your agent have to keep records showing the property met the rental minimum standards before it was advertised or the renter moved in.
- Energy efficiency upgrades. New standards for heating, cooling, hot water, insulation and draughtproofing phase in from 1 March 2027. Our 2027 energy efficiency guide explains what triggers them.
One more change from 13 October hits the end of a lease. To claim against the bond you’ll need to tell the renter in advance and back the claim with evidence. Good condition records and dated photos are now part of protecting your money, so keep them after every job.
The predictable costs: wear and tear
Every rental wears in roughly the same places. None of these are surprises if you plan for them:
- Gutter cleaning, once a year or twice if trees hang over the roof
- Touch-up painting between renters, and a full repaint every several years
- Tap washers, cistern parts, door hardware and blind cords
- Shower regrouting and resealing, before failed grout lets water into the wall
- Deck and fence oiling or repairs
- Garden tidy-ups, especially between leases
The cheapest time to do most of this is when the property is empty. A tight vacancy turnaround, with every job booked into one visit, costs less than calling a tradie out for each item once a new renter is in.
The unpredictable costs: urgent repairs
This is where the reserve earns its keep. Victorian law sets out a list of urgent repairs that you must arrange immediately. It includes a burst water service, a blocked or broken toilet, a serious roof leak, a gas leak, a dangerous electrical fault, and failure of hot water, heating, cooking or laundry appliances. Anything else counts as non-urgent and has to be fixed within 14 days of the renter’s written request (Consumer Affairs Victoria).
You can’t schedule a burst pipe. You can make sure the money is there when it happens, and that you already have a trade who will pick up the phone on a Sunday.
How to keep the number down
Most avoidable maintenance cost comes from small jobs left to grow. A dripping tap becomes a water bill dispute. Cracked grout becomes a rotten shower base. A loose gutter becomes a damp wall.
Three habits help most:
- Fix non-urgent items inside the 14 days, while they’re still small
- Batch jobs so one visit clears the list
- Read routine inspection reports as a job list, and act on them
Maintenance is also tax deductible in most cases, so keep every invoice. Our EOFY guide for landlords covers what usually qualifies, but check the detail with your accountant.
Working with an agent?
If your property manager handles maintenance, ask how they schedule the compliance checks with licensed electricians and gasfitters, and whether one contractor can cover the general repairs and handyman work around them. That’s the difference between one visit and five.
That’s how we work with Melbourne agencies. Our real estate maintenance service gives property managers one contact for repairs, maintenance and vacancy work across their rent roll, with photos and reports after every job. Landlords can get in touch directly too.