After more than 12 years of managing rental properties in Richmond, I’ve learnt that owning an investment property in the suburb is not always trouble-free.
Richmond has everything from Victorian terraces and older walk-up apartments to modern townhouses and large apartment developments.
Each property type presents its own maintenance, compliance and vacancy risks, which need to be carefully managed.
At the time of writing, HtAG Analytics reports a Richmond vacancy rate of approximately 1.67%.
This indicates constrained rental supply and solid tenant demand, although vacancy figures can vary according to the data provider and the method used.
For comparison, the REIV reported a metropolitan Melbourne vacancy rate of 2.6% in July 2026.
A relatively low vacancy rate is encouraging, but it does not mean every property will lease quickly or achieve an unrealistic rent.
Renters still compare presentation, location, natural light, heating and cooling, parking and competing properties.
An older apartment facing a busy road may remain vacant while a better property nearby receives several applications.
One of Richmond’s greatest strengths—its variety of housing—is also a source of risk. Many Victorian and Edwardian homes have ageing roofs, rising damp, deteriorated brickwork, old plumbing, outdated wiring and limited ventilation.
These issues may be manageable in an owner-occupied home, but they can become urgent and expensive when a renter is living in the property.
Noise is another consideration. Homes close to Punt Road, Hoddle Street, Victoria Street, Bridge Road, Church Street, railway lines, entertainment venues or late-night commercial areas may attract a smaller tenant pool.
Richmond’s narrow streets can also make parking difficult, particularly where a property has no off-street space or permit eligibility.
Apartment owners face different challenges. Large developments may have high owners corporation fees, defects, water leaks, cladding concerns or special levies.
Common-property repairs can take longer because the owners corporation or building manager must become involved.
Apartments with poor light, awkward layouts or no parking can face greater competition when similar properties are advertised in the same building.
Richmond property prices are high, so gross yields may be modest compared with more affordable suburbs.
Unexpected repairs, owners corporation levies and vacancy can quickly reduce the net return.
Victoria has some of Australia’s most detailed rental regulations. Rental providers must ensure their properties comply with minimum standards covering 15 categories, including bathrooms, electrical safety, heating, kitchens, locks, lighting, ventilation, structural condition, mould, damp and window coverings.
Since 25 November 2025, a property must meet the minimum standards before it is advertised or offered for rent, not merely before the renter moves in.
Modern switchboards with circuit breakers and electrical safety switches are required, and rental properties must have an appropriate fixed heater in the main living area.
From 1 December 2025, cords on internal window coverings must also be securely anchored. Further energy-efficiency standards are scheduled to commence from 1 March 2027.
These rules are particularly important when buying an older property. A low price can be misleading if the home requires a new switchboard, heating upgrade, roof repairs, mould remediation or substantial work to make it sound and weatherproof.
Renters can issue a breach-of-duty notice if a rental provider fails to maintain the premises or meet their legal obligations. If the issue is not resolved within the required timeframe, the renter may apply for a compliance or compensation order.
Where repairs make a home temporarily uninhabitable, disputes can also arise about reduced or waived rent and temporary-accommodation costs.
This makes preventative maintenance far less expensive than ignoring a problem until it becomes a legal dispute.
The best rental investment is not necessarily the newest or cheapest property. It should be durable, compliant, easy to maintain and suited to Richmond’s renter market.
A well-designed one or two-bedroom apartment in a smaller, well-maintained development may appeal to professionals and couples.
Natural light, ventilation, heating and cooling, storage, a balcony and parking can help it compete. Review owners corporation records, funds, insurance, planned works and any history of leaks or defects before buying.
For houses and townhouses, functional layouts generally perform better than unusual renovations. Two genuine bedrooms, a practical kitchen, a clean bathroom, efficient heating and cooling and usable outdoor space can widen the tenant pool.
Avoid buying solely because a property looks attractive during a short inspection. Fresh paint can hide damp, and new flooring can conceal uneven or damaged subfloors.
Check the roof, drainage, windows, switchboard, hot-water system, heating, ventilation and signs of mould. In an apartment, investigate the entire building—not only the unit being sold.
Location within Richmond also matters. Many renters value walking access to Swan Street, Bridge Road, Victoria Street and train or tram services, but they may not want traffic, venue or railway noise directly outside the bedroom.
The strongest rental properties usually offer convenient access without the worst noise, congestion and privacy problems.
In my experience, buyers should also apply extra caution when considering property immediately around the medically supervised injecting room in North Richmond, or directly beside and overlooking the large public-housing precinct around Elizabeth and Highett streets.
The injecting room provides an important health service, but some prospective renters may have concerns about activity in the surrounding streets and choose a different location.
Properties very close to large housing estates can also be affected by reduced privacy, outlook, noise and buyer perception.
This does not automatically make a property unsuitable, but it can limit the tenant pool and affect rent, vacancy periods and future resale demand. I recommend inspecting the immediate area at different times of the day and week before purchasing.
Mark Ribarsky is the owner and Lead Property Manager at Property Managers Melb. As a fully licensed estate agent with more than 12 years of experience managing rental properties in Richmond, Mark brings extensive local knowledge and practical property management expertise to every tenancy.