Rents across the country are soaring, so what are your rights if your landlord wants to increase yours? Here’s what you need to know.
Australia is experiencing a rental crunch, with those in the market facing soaring prices as demand for properties outstrips supply.
The reality was laid bare this week in new research by property research firm PropTrak. It found the share of dwellings advertised on property site realestate.com.au across Australia’s capital cities for less than $400 sunk from 31.5 per cent in February 2022 to 14.6 per cent last month.
Across the regions, that share has fallen more modestly from 37.8 per cent in February 2022 to 25.9 per cent 12 months later.
PropTrack’s Cameron Kusher said demand for rentals was outpacing supply, driving up weekly rents and keeping vacancy rates low.
“As a result, there has been a significant reduction in rentals available for less than $400 per week since the onset of the pandemic,” he said.
Overall, the share of advertised rental listings on the property site below $400 a week has plummeted to its lowest level since late 2018.
As the market has tightened, renters groups on social media have lit up with tenants sharing stories of the rent increases they are facing, some amounting to hundreds of dollars more each month.
You might be wondering when your landlord is allowed to increase your rent. Here’s what you need to know.
Victoria
Your rent cannot be increased if you are on a fixed-term agreement unless the contract states it can.
If it does, 60 days written notice must be provided. The same notice period must be given to those on a month-by-month agreement.
Victoria’s laws
don’t restrict how much your rent can be increased by, but generally, it can only be hiked once every 12 months.
An explanation of how the increase was calculated must also be provided.
If you’ve tried to negotiate an increase but are unable to come to an agreement, you can ask Consumer Affairs Victoria (CAV) to conduct a free rent assessment within 30 days of receiving the notice of their intention to increase the price.
CAV will inspect the property and provide an assessment to you and your landlord. If the assessment says the increase is too high but your landlord refuses to lower it, you can apply to have the matter heard at the Victorian Civil and Administrative Tribunal. But you must do so within 30 days of receiving the assessment.
Australia is experiencing a rental crunch, with those in the market facing soaring prices as demand for properties outstrips supply. Source: SBS News
NSW
For renters on a fixed-term agreement of less than two years, a rental increase can only occur if specified in your contract.
In cases where this is allowed, the increase must be clearly stated along with an explanation of how it was calculated.
NSW Fair Trading
states vague statements of calculation, such as “in line with the market”, are not acceptable.
Rental increases are restricted to once every 12 months for those on agreements of two years or more, and you must be provided with at least 60 days’ written notice.
You must be provided with the same notice even if you are on a month-by-month lease, and your rent can only be increased once in any 12-month period.
You can try to negotiate with your landlord if you feel the proposed increase is unreasonable. If you are unable to agree on a figure, you can apply to have the matter heard at the NSW Civil and Administrative Tribunal.
Queensland
Rent cannot be hiked for those on fixed-term agreements
unless specified in the tenancy agreement
.
If there is a provision for an increase, it can only occur six months after the tenancy starts or since the last increase.
Two months’ written notice of the increase must be provided, with reference to the increased amount and the day it takes effect.
Renters on periodic agreements must also be given 60 days’ written notice of an increase, which can only apply six months after the last.
If the tenant feels the rent increase is excessive, they can choose to dispute the matter by applying for
free dispute resolution through the Residential Tenancies Authority
.
Participation in the process for both parties is voluntary.
If dispute resolution is unsuccessful and the matter meets the
definition of “urgent”
, such as eviction, an application can also be made to the Queensland Civil and Administrative Tribunal.
The application must be made within 30 days of receiving the notice of the rent increase.
South Australia
Rent increases cannot be served to tenants on fixed-term agreements unless there is a condition that allows for it in the agreement.
It will need to specify how the increase will be calculated, such as with reference to inflation.
You still need to be provided with 60 days’ written notice even if an increase is detailed in your agreement. One can only be imposed 12 months after the last rent increase, or 12 months after the agreement started.
For periodic agreements, the same written notice requirement as outlined above also applies.
If your rent has been increased and you believe the total amount you are paying is excessive, you can apply to have the matter head
at the South Australian Civil & Administrative Tribunal.
Western Australia
Under a fixed-term residency,
rent increases
can only occur if stated in the agreement. How the increase is to be determined must be specified.
The rent increase can only take place six months after the last increase, or six months after the tenancy agreement starts. Separate written notice of at least 60 days must be provided, and comply with
prescribed rules for proper notice
For a periodic tenancy agreement, rent increases cannot occur until six months after the last increase. Separate written notice of at least 60 days must be provided as outlined above.
Tenants who believe the rent is too high can seek a reduction or argue against the increase by
applying to the local court
, with the judge considering issues such as if the rent is comparable with other properties in the area, or if the lessor is putting up the rent simply to force the tenant out.
Tasmania
Rent can only be increased for tenants who are living under a written lease that provides for rent increases, or if the agreement is not in writing.
The
rent increase
can only proceed if the written notice rules are properly complied with, including at least 60 days’ notice and specification of the new rent amount and the start date.
Increases can only occur once every 12 months. That means if you signed a six-month lease and agree to renew or extend it at the end of the period, you cannot be asked to pay more at that point.
For tenants who believe a rent increase is unreasonably high, they can seek to have it reviewed by
applying to the Residential Tenancy Commissioner.
Northern Territory
Rent
can only be increased during a tenancy
if there is a provision in the agreement, which must also include the method of calculation for the increase.
An increase must come with at least 30 days’ written notice, and the date it starts has to be at least six months after the last increase, or at least six months after the tenancy began.
An increase can be applied during the tenancy if there is no provision, but only if you and your landlord agree.
Tenants can seek to review the rent increase if they believe it is excessive, by
applying to the NT Civil and Administrative Tribunal.
ACT
If you are on a fixed-term tenancy agreement, a rent increase can only be applied if there is a provision in the contract that allows it.
If there is, it must state the amount of the increase or detail how it would be calculated.
If a fixed-term agreement of at least 12 months has expired, an increase can be applied if eight weeks’ notice is given.
For tenants in a periodic tenancy, the rent can be increased once every 12 months. The same notice requirements apply.
A rent increase is presumed excessive – and therefore not allowed – if it exceeds the “prescribed amount” as set out in the Residential Tenancies Regulations 1998.
Referencing the Consumer Price Index figure, the prescribed amount is
110 per cent of the percentage increase in CPI for rents
in Canberra.
A landlord can seek a rent increase above the prescribed amount but will have the onus to seek approval for that size of increase through the ACT Civil and Administrative Tribunal (ACAT).
Tenants seeking to challenge a rent increase below the prescribed amount,
can lodge an application with ACAT
at least a fortnight before the start date of the proposed increase.
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