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    Default Rent increase question

    I've had a look online and I know I can query the increase amount. Firstly I just want some perspective of whether this is a reasonable increase.

    In May our lease expired and we were offered another 12 months, we declined but suggested we take 6 months. We were told the owner was fine with month-to-month and there were no plans to increase the rent.

    Fast forward to today and we have been advised of an increase of $50pw (they have given 60 days notice).

    This is an increase of about 8%. A quick google search tells me CPI on housing is up 3.9% in the last year, so to me that would be a reasonable increase, 5% would seem a little high but I would probably suck it up. So my question is should I challenge them on the amount? Any of you in RE know if this would get me anywhere?

    At the end of the day we don't really want to move, the saving of moving to would easily to sucked up on a move it's self. I just feel like I'm been taken for a mug.

  2. #2
    BH-KatiesMum's Avatar
    BH-KatiesMum is offline Community Manager
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    come back with a suggested amount that you would be happy with.


    They will most likely be negotiable as it will cost them money to find a new tennant if you move out.

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    That's a big increase!

    I would be gently questioning it and perhaps try and negotiate a smaller increase. If you sign a new 12 month lease they might be willing to settle for less?

    Good luck

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    What are comparable properties in the same suburb advertised for? That's normally your best guide. If it's less then what they're upping your rent to then there's definitely an argument that the increase is too much.

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    I renewed my lease every 6 months and rent was only ever increased $10 at a time.

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    Thanks everyone, I'm glad I'm not just over reacting.
    We aren't in a position to sign another lease as we are in the process of building. The owner and the agent know this and I feel the price increase is because they know they have us over a barrel.
    Looking online there is a house in the street very similar and it's on for $50 more than they want to increase ours to, it's be empty for a month so obviously can't get that. I found another house very similar to ours, i think it's the same builder and it's the same price as we currently pay. I will email and suggest we meet in the middle perhaps.

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    which state are you in? In Vic, the Act gives you 30 days from when you receive notice of rent increase in which you can challenge a rent increase at VCAT. It involves completing a request for repairs inspection or rent increase assessment form and submitting to consumer affairs. Then if that comes back in your favour, making an application to the Tribunal (VCAT) to challenge the increase. The Tribunal member will then hear and determine the matter.

    Agree that you should try and negotiate with the landlord if you can however don't wait too long!

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    It's been many moons since we rented but at the time the rule was only a 5% increase every 12 months. Things may have changed though.

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    Quote Originally Posted by firsttimemum34 View Post
    which state are you in? In Vic, the Act gives you 30 days from when you receive notice of rent increase in which you can challenge a rent increase at VCAT. It involves completing a request for repairs inspection or rent increase assessment form and submitting to consumer affairs. Then if that comes back in your favour, making an application to the Tribunal (VCAT) to challenge the increase. The Tribunal member will then hear and determine the matter.

    Agree that you should try and negotiate with the landlord if you can however don't wait too long!
    In NSW - we can do something similar, but to be honest that seems fruitless. I'd sooner move than have go to town with the owner. I don't want to rent a place off someone who is an ar$e and I'm sure he doesn't want to have a tenant who is a pain in the ar$e!

    I'm hoping that the agent has made the recommendation (albeit blindly as they are actually out of the area) and that the owner has just accepted their suggestion (as I no doubt would too) and that he'll be happy to meet in the middle.

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    Just googled the info and can't see the old rule that I mentioned applying anymore. Here is the info page:

    http://www.tenants.org.au/factsheet-04-rent-increases


 

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