It’s no news that there is a rental crunch in Australia today. Interest rates, mortgage costs, etc., keep soaring proportionately with inflation. Current statistics show that there is a higher demand for rent than what the available supply can cater to. By implication, if the situation isn’t eased quickly, there is a high chance you’d be hearing from your landlord or rental agent soon if you have not already heard.
We understand how daunting this is, but unfortunately, we don’t make the rules; it’s the law of demand. In these trying times, the best you can do for yourself is to arm up with information on how to handle rent increments. That said, this guide aims to make you aware of your rights to contest an unwarranted rent increment and how to go about it. It also discusses the legal requirement for increasing rent, not sparing the intricacies peculiar to each state.
What is a rent increase notice?
A Rent Increase Notice is a legal document through which a landlord notifies a tenant(s) of an imminent increase in their rental payment(s). Its essence is to ensure proper communication such that none of the concerned parties can claim they aren’t well aware.
A notice period is the timeframe between issuing a notice and when it actually takes effect. It provides both parties enough time to digest and discuss the new terms.
Legal requirements for issuing a rent increase notice
Issuance of notice
Before a rental provider can raise rent price(s), the law stipulates that he/she must have sent out a Rent Increase Notice to the renter. The notice period can take anywhere from 30 – 60 days, depending on your state of residence. This applies to both fixed-term agreements and periodic rental agreements. However, a fixed-term agreement can not be increased except as already stated in the rental agreement.
Justifiable reason
There are several reasons and factors that necessitate rent increases. Be that as it may, a price change must be fair and justifiable. Some of the reasons include increasing maintenance costs, renovations, or simply keeping up with market trends. It’s the landlord’s responsibility to keep this fair.
Speaking of market trends, rent can be increased if demand overshadows supply. Researching and paying more attention to the Consumer Price Index is a great way to anticipate what’s coming. So, by just how much can a landlord increase rent?
Strict adherence to tenancy laws
First of all, you should know that tenancy laws differ by state, no matter how slightly. The law protects you from arbitrary actions by your landlord, and as such rent cannot be increased blindly or unjustifiably.
It states how often and, in the case of the Australian Capital Territory, the maximum allowable percentage increase. Across all States, the laws allow for a six-month to one-year timeframe for rent increase. However, here’s why landlords shouldn’t always ask for a rental increase.
Rent increase notice period and frequency by State
Australian Capital Territory
- Notice period: Eight Weeks
- Legal increment timeframe: 12 months
New South Wales
- Notice period: 60 days
- Legal increment timeframe: 12 months
Northern Territory
- Notice period: 30 days
- Legal increment timeframe: Six months
Queensland
- Notice period: Two months
- Legal increment timeframe: Six months
South Australia
- Notice period: 60 days
- Legal increment timeframe: 12 months
Tasmania
- Notice period: 60 days
- Legal increment timeframe: 12 months
Victoria
- Notice period: 60 days
- Legal increment timeframe: 12 months
Western Australia
- Notice period: 60 days
- Legal increment timeframe: Six months
How to handle a rent increase notice
Negotiation
When you get a notice and you feel it is outrageous or unjustifiable, your first port of call should be dialogue. We strongly suggest you dialogue with your landlord, engage him/her with an open mind and present your “reasonable” counter-offer. Only if this proves futile should you consider legal steps.
Contestation
This involves taking legal steps to reverse an unreasonable increase. Where negotiation fails, proceed to apply to your State’s Civil and Administrative Tribunal. The Tribunal looks into several issues, including the tenancy agreement and the current state of the property.
Factors like the current market situation and the date of the most recent increase also play a crucial role in the court’s final decision. If the landlord won’t make repairs, for instance, this can be in your favour.
Therefore, ensure you get your facts right and present a solid case. Mind you, you have just 30 days to apply to a Tribunal after being served.
Acceptance or rejection of new terms
In the event that the two options above don’t go your way, you have the choices to either accept or vacate the property. If you decide to stay, all is well and good. However, if you reject it, you need to communicate your decision in writing to your landlord.
Relevant civil and administrative tribunals by state
- Australian Capital Territory – ACT Civil and Administrative Tribunal (ACAT)
- New South Wales – NSW Civil and Administrative Tribunal (NCAT)
- Northern Territory – Northern Territory Civil and Administrative Tribunal (NTCAT)
- Queensland – Queensland Civil and Administrative Tribunal (QCAT)
- South Australia – Consumer and Business Services (CBS)
- Tasmania – Consumer, Building, and Occupational Services (CBOS)
- Victoria – Victorian Civil and Administrative Tribunal (VCAT)
- Western Australia – Consumer Protection
People also ask
How much rent increase should I expect?
By law, there is no maximum rent increase except in the case of the ACT where the law puts a 10% cap. Regardless, you have the right to contest an unreasonable raise in court. Find the appropriate one above.
How do I negotiate with my rental provider?
The first step is to keep up with the rental market such that you can tell what your apartment is currently worth accurately. Respectfully present a counteroffer and explain why you think it’s fair. Also, be open to compromise, perhaps, a new fixed-term agreement.
Can my rent be reduced if I win my case?
While the laws across all States and Territories do not explicitly define “excessive,” the Tribunal is at liberty to determine what is. In a case where rent is termed excessive, the court may call for a reduction, especially in a periodic agreement.
