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 Rent increases |
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Author: The Tenants Union of Victoria LtdNotice
The landlord must give you 90 days notice in writing of a rent increase. The 90 days must run from the date that you would be expected to receive the notice (ie two days after it was sent if it was mailed to you).
The notice can only provide for one rent increase and must also advise you of your right to apply to the Director of Consumer and Business Affairs Victoria to investigate the proposed increase if you think the increase is unreasonable. If the notice does not comply with all of these conditions, it is invalid and you do not have to pay the increase.
Time between rent increases
If you have a fixed-term tenancy agreement, the rent cannot be increased during the course of the fixed term, unless there is a clause in the agreement allowing the landlord to do so. If there is a clause allowing rent increases during the fixed term, your landlord can increase the rent at any time if the increase is in accordance with that clause and they have given 90 days written notice.
You should not sign any fixed-term tenancy agreement which allows for unrestricted rent increases during the fixed term. If you do so, the landlord can legally increase the rent from the day after you move in, and continue to increase the rent during the course of the tenancy.
If the increases are in line with the market rental for similar properties, you cannot successfully challenge the increases and could be stuck with a tenancy agreement on a property where you cannot afford to pay the rent, forcing you into breaking your tenancy agreement or being evicted for arrears.
Where a fixed-term agreement allows for an increase on a particular date and states the higher rental amount, the law is unclear as to whether the landlord needs to provide a written 90 day notice of the increase as well. You can argue that 90 days notice is required, but be aware that the Tribunal may not take this view.
If there is no fixed-term tenancy, the rent can be increased at any time, provided the landlord complies with the notice requirements.
Challenging rent increases
If you think the proposed rent is too high, you may request that an inspector from Consumer and Business Affairs Victoria inspect your home to determine whether the increase is reasonable. You must make the request within 30 days of receiving the notice of rent increase.
You should address your request to the Director, Consumer and Business Affairs Victoria, Level 2, 452 Flinders Street, Melbourne VIC 3000. The inspector should look at the state of repair, services and facilities provided with the premises and compare the rent charged for your home with that charged for similar properties in the same area.
You should provide the inspector with information about the property that will help you make the case that the rent increase is excessive (eg state of repair of the property, problems with the location, facilities provided by you rather than the landlord).
The inspector will then issue a report. Once you have the report you can apply to the Victorian Civil and Administrative Tribunal to ask them to determine if the rent is excessive. You must make the application within 30 days of receiving the inspector's report.
If the Tribunal finds the rent excessive, it can order the rent not be increased, or be increased by a lesser amount. It can also set a period of time during which the landlord cannot increase the rent. The Tribunal will make these orders only if the proposed increase is significantly more than the rent payable for similar rental premises in the same area.
If the rent increase comes into effect before your case is heard in the Tribunal, you should pay the increased rent until the Tribunal has made a decision. If the application is decided in your favour, the Tribunal can order that you be reimbursed any increased rent that you have already paid.
Reduction in services or facilities
If your landlord reduces any services or facilities available with the property (eg closes a communal laundry) you can request a report from Consumer and Business Affairs Victoria as to whether the rent on your property should be reduced. Once you have the report, you may apply to the Tribunal for an order that the rent be reduced. The Tribunal will only set a new rent if the rent charged is significantly more than the rent payable for rented premises with the same facilities in the same area.
Negotiation with landlord
It is worth trying to negotiate with your landlord or agent over a proposed rent increase. The landlord or agent may be willing to reduce the amount of the increase, particularly if you are an established and reliable tenant, or if you would have to move out because of the increase.
You can also use the inspector's report (if you have one) to negotiate an agreement about the rent increase with your landlord or agent, so you don't have to go to the Tribunal. Make sure any agreement you reach is in writing, and signed by yourself and the landlord or agent.
Refusal to pay the increase
If you refuse to pay the increase, and the landlord or agent has given you valid notice, you will be in rent arrears. The landlord or agent is entitled to give you a Notice to Vacate and apply to the Tribunal to have you evicted if you are 14 days or more in arrears.
You would have a chance to put your case at the Tribunal, but there is always the possibility you will be evicted. Talk to the Tenants Union or a tenant advice service if you are in this situation.
The information in this Fact Sheet is not legal advice. It is intended as a general guide only. It applies only to legislation current in the state of Victoria, Australia. For information regarding a specific tenancy problem, contact the Tenants Union. The Tenants Union accepts no responsibility for actions based on this information, nor for actions based on electronic translations of this information.
October, 2001
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