About a third of the gas used domestically in Australia is used in Victoria, and of that about half is burned on heating buildings, many of which are inefficient. Rental homes are some of the least efficient buildings we have.

Almost a third of homes across the state are rentals, providing housing for some of the lowest income householders in Victoria. This is a problem for public health, the financial wellbeing of renters stuck with higher than average costs for heating and cooling inefficient buildings and, of course, the climate.

This report discusses the issues renters face in managing their energy demands and offers policy advice for state and federal governments to help improve the comfort and affordability of rentals.

Key recommendations:

• Rental standards should be raised to a mandated minimum four star energy rating.
• All rental property advertisements are mandated to include independently verified building efficiency ratings.
• The Residential Tenancies Act 1997 should be amended to allow minor upgrades to be made by tenants to improve the thermal efficiency and energy performance of their rental property without fear of penalty.
• Building efficiency is reassessed at landlord expense every 10 years as a requirement for Australian Tax Office assessment of income.
• Policy changes and upgrade offerings are made explicit through targeted information packages available to all landowners and be acknowledged as a requirement of offering a residential property for lease.