If you're renting, you'll know that rental increases are a fact of life.
But what options do you have when you think your landlord is asking for too steep a hike?
Here's what you need to know about disputing a rent increase.
What should I do if my landlord wants to bump up my rent?
We spoke to Joel Dignam, the executive director of Better Renting, an advocacy group for tenants.
"The first step is to check that the rent increase meets the basic legal requirements," Mr Dignam says.
"Is there the correct notice period, is notice given in the right way?
"The specific requirements will depend on where you live, so it can be worthwhile checking with your local tenants advice service to be sure.
"You certainly can't trust that your landlord or agent knows or complies with the law, sadly."
Housing is a national issue, but there's no catch-all national rental authority — that's because it's something handled at a state level.
That means that each state and territory has its own rules when it comes to renting and there are different bodies to deal with rental matters.
"If the rent meets the basic requirements, then it's generally a question of considering the amount," Mr Dignam says.
"You may have the option to argue that the increase is excessive, which is partly about market conditions but could also consider issues like the state of repair of your current property.
"If you do think the increase is excessive, you'd generally have to apply to your local tribunal within a certain time frame, or the increase automatically takes effect.
"So don't delay too long, but probably the best first step is just to write to your lessor and see if you can negotiate something else without having to go to tribunal."
What does 'going to tribunal' mean?
You can take the matter to your state or territory's Civil Administration Tribunal (CAT) to decide on the best outcome.
It's much less formal than a criminal court case.
However, the decisions can be enforced.
How much are landlords allowed to increase rent?
For much of Australia, there's no limit to how much landlords can increase the rent.
However, the ACT has what's called a "prescribed amount", which is tied to inflation figures.
Tap on your state and territory for more details.
ACT
"The prescribed amount is based on the rents component of the Consumer Price Index (CPI) for Canberra.
"The CPI figures are published every quarter on the Australian Bureau of Statistics website.
"The prescribed amount is 110 per cent of the percentage increase in CPI for rents. That is, a lessor can increase the rent on a property by 10 per cent more than the increase in the CPI."
Source: ACT Civil and Administrative Tribunal
NSW
"If you cannot reach an agreement with your agent or landlord, you:
- can apply to the NSW Civil and Administrative Tribunal (NCAT) within 30 days of receiving the rent increase notice if you believe that the rent increase is excessive
- will have to prove that the increase is excessive.
"Some of the main evidence the Tribunal considers is comparable rents for similar properties in the same area, the state of repair and amenities provided in the property and the landlord's expenses."
Source: Fair Trading NSW
Northern Territory
"The agreement must also state the amount of the increase or the method of calculation."
Source: Northern Territory government
Queensland
"A tenant or resident can dispute the increase if they feel it is excessive by discussing the issue with the property manager/owner. If the tenant or resident still feels the increase is excessive, they can apply for dispute resolution once the new agreement is signed. They may also apply to the Queensland Civil and Administrative Tribunal (QCAT) for a decision."
Source: Rental Tenancies Authority Queensland
South Australia
"If a tenant can prove the total rent after it has been increased is excessive, they can apply to the South Australian Civil and Administrative Tribunal (SACAT) for the rent to be changed."
Source: South Australian government
Tasmania
"If you think a rent increase is unreasonably high, you can apply to the Residential Tenancy Commissioner to have the rent increase reviewed…
"The Commissioner can make an Order that a rent increase is reasonable, or that it is unreasonable and specify a different amount."
Source: Consumer, Building and Occupational Services Tasmania
Victoria
"The law doesn't say exactly how much a rental provider can put the rent up by.
"However, the law does require a rental provider to give their renter information about how they have calculated the rent increase."
Source: Consumer Affairs Victoria
Western Australia
"The amount of rent charged at the start of a new tenancy is generally controlled by market forces, but if the tenant/s believe the rent is too high they can apply to the Magistrates Court requesting a reduction, or to argue against a proposed increase."
Source: Department of Mines, Industry Regulation and Safety Western Australia
How do I negotiate with my landlord?
"It's really hard to negotiate in most cases — you don't have much leverage, and you may put yourself at risk of retaliation," Mr Dignam says.
"But it's worth thinking what leverage you may have — if you've been there a while and are known and trusted, they may prefer a lower rent increase if it means you'll stay.
"Often there are also neglected repairs that haven't been done for months.
"This is a strong ground for the rent increase not to happen, but in reality, it may be that the rent increase does happen but you can at least negotiate to finally get the repairs done.
"It's also possible that the increase is being pushed by the agent and the landlord may not even be aware of it — so if you have a way to get in direct contact with your landlord that may help, although, of course, they may still want the rent increase to proceed."
Should I go to tribunal?
It might help to think of taking the matter to tribunal less as a court case you see on television crime dramas and as "something like a negotiation", as Mr Dignam describes it.
"Just showing you are willing to go to the Tribunal may help resolve an issue without having to go that far.
"I know I've done this with past bond disputes: just showing that you are willing to stand up for yourself can help to reach a compromise solution.
"You won't necessarily have to go to the tribunal to get a result, sometimes just even mentioning that can be enough.
"It's generally in a landlord's interest to avoid an issue going to tribunal, because it is inconvenient, annoying and can cost them money.
"Unfortunately, the same barriers exist for renters, which often makes it harder to get fair outcomes."
How hard is it to take matters to tribunal?
"Generally, to take a matter to the Tribunal you simply fill out a form and make an application, also paying a fee to do so," Mr Dingnam says (more on that below).
"This is when you'd include your evidence, so it's important to have as much as possible written down — just referring to verbal conversations won't carry much weight as evidence.
"If you are arguing, for example, that a rent increase is excessive, you'd want to show evidence of other similar properties that are being rented out for less.
"The tribunal then sends your application to your agent/landlord, who would be the 'Respondent'.
"Sometimes this might be enough to get a resolution, otherwise the next step would be a hearing.
"Although this process can be time-consuming and tedious, it's much less elaborate than going through the court system.
"Typically, you represent yourself, lawyers aren't involved, and they are more understanding to help you through the process."
Is it expensive to take a matter to a rental tribunal?
"The most obvious cost to take a matter to a Tribunal is the filing fee," Mr Dignam says.
"When you apply, you can actually ask that your landlord reimburse you the cost of the filing fee if you are successful."
As for other costs, it really depends on your case and your personal circ*mstances.
Mr Dignam points out the time and effort that could go into your case should be considered.
"You may have to take time to prepare your evidence, or to appear at a hearing.
"This is a barrier for lots of renters but if it's any consolation, your real estate agent is charging your landlord hundreds of dollars an hour to appear in tribunal, so there's some poetic justice there.
"The other potential cost is the risk of retaliation.
"Unfortunately we have a really tight rental market that is weighted against renters, and even if you succeed at tribunal you may find yourself subject to a retaliatory eviction, or just struggle to get a good rental reference if you later choose to move out.
"I want renters to be aware of these potential downsides, but overall I do think more people should be willing to go to the tribunal.
"Every case lodged helps to show the need to do something about rental issues, and every victory helps not only you, but every other renter."
How much are filing fees?
Again, this depends on your state or territory rules.
It also depends on what kind of action you're taking and your personal circ*mstances.
For example, if have a Concession Card or are using the services of a community legal centre, you might be eligible for a reduced fee in some jurisdictions (NSW, QLD).
You can also apply to have your fee waived in some states (ACT, NT, NSW, QLD).
Here's a state-by-state breakdown of tribunal fees — but keep in mind that these are basic fees and don't include extras.
If the matter goes to a hearing, for example, you may have to pay extra.
Tap on your state or territory for more details.
ACT:$83–$356
Residential Tenancy (Rental Property Disputes)
Application for resolution of a dispute, or a lodging a cross-claim or counter-claim, to a claim under Residential Tenancies Act 1997
Fees for individuals:
- Where the amount of the dispute is more than $15,000: $635
- Where the amount in dispute is between $3,000 and $15,000: $176
- Where the amount in dispute is $3,000 or less, or where no amount is in dispute: $83
- Termination and possession order pursuant to Part IV of the Residential Tenancies Act 1997 where a bond has been deposited with the Territory: $176
- Termination and possession order pursuant to Part IV of the Residential Tenancies Act 1997 where a bond has not been deposited with the Territory: $345
- Any other application: $83
Where the application involves more than one of the above matters, the fee payable is the higher of the fees.
Source: ACAT
NSW: $15–$58
Consumer and Commercial Division
Residential proceedings: Includes matters about tenancy, social housing, residential communities, retirement villages and boarding houses.
Standard fee: $58
Reduced fee: $15
The reduced or concession fee applies to eligible pensioners or individuals in receipt of a grant of legal aid or assistance from a community legal centre.
Source: NCAT
Northern Territory:$76–$469
Application under the Residential Tenancies Act 1999 or Caravan Parks Act 2012
Fees for individuals
(a) where the application includes a claim for a monetary amount that is less than $2,000: $76
(b) where the application includes a claim for a monetary amount that is between $2,000 and $10,000: $234
(c) where the application includes a claim for a monetary amount that is more than $10,000: $469
(d) where the application includes a claim for a monetary amount but the amount is not specified in the application: $469
(e) where the application does not include a claim for a monetary amount: $76
Source: NTCAT
Queensland: $90.10–$379.50
Residential tenancy disputes are classed as minor civil disputes in the fee structure.
Application fees:
- No amount claimed: $111.30
- Not more than $1,000: $90.10
- More than $1,000 but not more than $10,000: $153.70
- More than $10,000: $379.50
Source: QCAT
South Australia: $64–$85
Application for commencement of Tribunal proceedings
- Standard fee: $85
- Concession fee: $64
Source: SACAT
Tasmania: $71.20–$106.80
Tasmanian tenants have the option to apply to the Residential Tenancy Commissioner to have the rent increase reviewed if they think rent increases are too high.
That can be done through a form available on Tasmania's Consumer, Building and Occupational Services website.
If they're unhappy with this response, they can appeal the matter at the Magistrates' Court.
Here's a breakdown of fees on Tasmania's Magistrates' Court website:
Administrative appeals: $106.80
Filing fee for an application or appeal filed under the Residential Tenancy Act 1997: $71.20
Sources: CBOS andMagistrates Court of Tasmania
Victoria: $70.10–$233.70
Claims with no specific dollar value
- Claims when you don't ask for money (eg repairs): $70.10
- Claims when you want money but don't say how much: $70.10
Claim or payment amount (for example unpaid rent)
- Residential property — Up to $40,000: $70.10
- Residential property — $40,001 or more: $233.70
- Rooming house — Up to $20,000: $70.10
- Rooming house — $20,001 or more: $233.70
Source: VCAT
Western Australia: $20.50–$74.50
If disputes about rental property issues cannot be resolved privately or by using Consumer Protection's free conciliation service, you may need to apply for an order from the Magistrates Court of Western Australia (Magistrates Court).
Here are the fees listed on the Magistrates Court of Western Australia website:
Claim not exceeding $10,000
Filing fee — financially disadvantaged person: $20.50
Filing fee — any other person: $74.50
Sources:Department of Mines, Industry Regulation and Safety Western Australiaand Magistrates Court of Western Australia
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