From 1 March 2027, new Victorian rental regulations will change how heating systems can be replaced in rental properties, and for landlords, the smartest move may be to act before the deadline.
Under the new rules, if a gas heater fails and cannot be repaired, it can no longer be replaced with another gas system. Instead, it must be upgraded to an energy-efficient electric system, typically a reverse cycle air conditioner.
While this change is still a year away, many existing systems are already approaching the end of their lifespan, meaning waiting could limit your options significantly.
Why Acting Before 2027 Gives You More Control
Across Victoria, a large number of gas heating systems are now 10–20 years old. As these systems begin to fail closer to 2027, landlords may face forced upgrades to more expensive electric systems, increased installation delays due to high demand, and fewer choices when a system breaks down unexpectedly.
Taking action now allows you to stay in control, rather than making rushed decisions under pressure.
The Reality of Ageing Gas Systems
Across Melbourne and wider Victoria, many gas ducted heating systems are now reaching 8–15 years of age. While some may still be operating, this is typically the stage where performance begins to decline and repair costs start to increase.
Older systems often struggle to heat the home efficiently, require more frequent servicing, and are more likely to break down during colder months. In many cases, continuing to repair an ageing system can become more expensive over time than replacing it altogether. This makes early assessment especially important with the 2027 deadline approaching.
Option 1: Replace Your Gas Heater Now (Recommended)
For landlords looking to minimise costs and avoid future stress, replacing your existing gas heater before the 2027 deadline is the most practical and cost-effective approach.
Upgrading now means you can still install a like-for-like gas system while it’s permitted.
Key benefits include:
- Manufacturer warranties of up to 7 years
- Lower upfront costs compared to electric upgrades
- Reduced risk of emergency winter breakdowns
- Cost-effective whole-home heating solution
- Fixed price maintenance for ongoing peace of mind
This option is especially suitable for properties already set up with ducted gas heating, where switching systems later could involve additional electrical work and higher expenses. For many landlords, acting now isn’t just a recommendation, it’s the simplest way to avoid higher costs and limited options in the near future.
Why Option 1 Makes Sense Right Now
Replacing your gas heater before the 2027 deadline isn’t just about compliance, it’s also the more practical financial choice. Reverse cycle systems can be more expensive upfront and may require additional electrical upgrades, which can increase both cost and installation time.
By comparison, upgrading your gas ducted system now allows you to use existing infrastructure, making the process simpler and more cost-effective. It also gives you flexibility to plan future upgrades on your own timeline, rather than being forced into a decision during an unexpected breakdown.
With demand expected to rise closer to 2027, acting early also helps you avoid delays and price increases. For many landlords, this makes replacing a gas system now the most straightforward and manageable option.
Option 2: Transition to Reverse Cycle Systems
For those looking to future-proof their property, transitioning now to a reverse cycle system is another option. These systems provide both heating and cooling, meet upcoming rental compliance requirements, and may be eligible for Victorian Energy Upgrades (VEU) rebates.
However, this option typically comes with higher upfront costs and may require electrical upgrades depending on the property, which is why many landlords are choosing to replace their gas systems now while they still have the flexibility to do so.
Avoid Last-Minute Costs and Delays
As the 2027 deadline approaches, demand for system replacements is expected to increase significantly. This can lead to longer wait times during peak winter periods, higher installation costs, and limited availability of installers.
By upgrading your system now, you can schedule work at a convenient time and avoid the industry-wide rush.
Start with a $399 Heating System Condition Report
To help landlords make the right decision, Rosanna Heating & Cooling is offering detailed heating system condition reports for $399.
These reports include:
- A full assessment of your current system
- Estimated remaining lifespan
- Carbon monoxide safety check
- Clear recommendations on repair or replacement
This allows you to plan proactively, rather than waiting for a breakdown to force your hand.
A Smart Move for Landlords and Homeowners
While these regulations apply specifically to rental properties, homeowners should also consider acting early. As demand increases closer to 2027, delays and costs will affect everyone, not just landlords.
Take Action Before the Deadline Approaches
With regulatory changes locked in and demand expected to rise, the worst position to be in is waiting until a system fails.
Whether you’re managing one property or a full portfolio, taking action now allows you to make informed, cost-effective decisions on your timeline, rather than under pressure. A simple condition report can give you clarity on your current system and help map out the best path forward, ensuring your property remains compliant, comfortable, and cost-efficient well beyond 2027.