+ Reply to Thread
Page 1 of 2 12 LastLast
Results 1 to 10 of 19
  1. #1
    Join Date
    Oct 2013
    Posts
    276
    Thanks
    3
    Thanked
    98
    Reviews
    0

    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
    Winner 2008 - The most optimistic poster
    Winner 2014 - Most Helpful Moderator
    Join Date
    Oct 2007
    Location
    Perth WA
    Posts
    22,645
    Thanks
    5,483
    Thanked
    5,956
    Reviews
    3
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 postsRuby Star - 15,000 postsDiamond Star - 20,000 posts
    Awards:
    Past Moderator
    200 Posts in a week100 Posts in a week
    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.

  3. #3
    Join Date
    Oct 2010
    Posts
    10,429
    Thanks
    3,281
    Thanked
    6,339
    Reviews
    1
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 posts
    Awards:
    100 Posts in a week
    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

  4. #4
    Join Date
    May 2013
    Posts
    79
    Thanks
    22
    Thanked
    47
    Reviews
    0
    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.

  5. #5
    Join Date
    Jul 2010
    Location
    Australia
    Posts
    11,474
    Thanks
    7,451
    Thanked
    6,189
    Reviews
    11
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 posts
    Awards:
    Busiest Member of the Week - week ended 29/5/15Busiest Member of the WeekBusiest Member of the Week100 Posts in a week
    I renewed my lease every 6 months and rent was only ever increased $10 at a time.

  6. #6
    Join Date
    Oct 2013
    Posts
    276
    Thanks
    3
    Thanked
    98
    Reviews
    0
    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.

  7. #7
    TheGooch's Avatar
    TheGooch is offline Winner 2014 - Newbie of the Year
    Winner 2016 BubHubs DIVA Award
    Join Date
    Jan 2014
    Posts
    5,199
    Thanks
    9,188
    Thanked
    4,788
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Awards:
    100 Posts in a week
    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!

  8. #8
    Join Date
    Feb 2013
    Posts
    4,308
    Thanks
    3,424
    Thanked
    1,831
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    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.

  9. #9
    Join Date
    Oct 2013
    Posts
    276
    Thanks
    3
    Thanked
    98
    Reviews
    0
    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.

  10. #10
    Join Date
    Feb 2013
    Posts
    4,308
    Thanks
    3,424
    Thanked
    1,831
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    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


 

Similar Threads

  1. Rent application critera - rent no more than 30% of income?!
    By PinkTurtle in forum Single Parents
    Replies: 35
    Last Post: 17-02-2014, 17:29
  2. Fee increase :(
    By jagamoe in forum Hubbers who are studying
    Replies: 0
    Last Post: 30-07-2013, 16:45

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
FEATURED SUPPORTER
Swim AustraliaSwim Australia are the leading learn-to-swim experts, and national swim school authority. With over 600 Registered Swim ...
REVIEWS
"Pigeon teats rule!"
by Alex
Pigeon PP Wide Neck reviews ›
"Wonderful natural Aussie made product!"
by Mrstwr
Baby U Goat Milk Moisturiser reviews ›
"Replaced good quality with cheap tight nappies"
by Kris
Coles Comfy Bots Nappies reviews ›