September 28th, 2022
5 questions you need to ask before signing a lease
Tips & How to's
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Key Points
- The Australian rental market is extremely tight right now and rental prices are going up at a rapid rate
- Understanding your rights as a tenant is key to negotiating a fair rent increase
- If you believe your rent has been increased unreasonably, there are certain avenues that you can take to dispute the rise
As a tenant in Australia, you’re no doubt aware that the rental market has become extremely tight over the last 12 months, with rental prices increasing at a rapid rate right around the country.
According to Compare the Market, 53.9% of renters in Australia have seen their rent increase in the past 12 months—at an average of $161 a month. Natasha Innes, Media and Communications Advisor at Compare the Market, tells us why:
“With homeowners facing consecutive rate rises, their mortgage repayments have increased dramatically since last May. Many landlords are passing these costs onto their tenants, which is why we’re seeing rental prices soar around the country.”
This means that whether you’re already facing a rent increase, or you suspect you’ll be dealing with one soon, it’s never been more important to have a clear understanding of your rights as a tenant when it comes to having your rent raised.
In today’s article, we’re going to answer a few of the most frequently asked questions that tenants like you have about rental price increases in Australia so that you can make better decisions for your unique situation.
Let’s start with the most common one:
What is the most that a landlord can raise my rent?
As far as Australian law is concerned, there is no legislation outlining or restricting the amount or percentage that your landlord or Property Manager can raise your rent.
The only exception is if you live in the nation’s capital. Tenancy laws in the ACT state that a rent increase may be no more than 10% higher than the increase in the Consumer Price Index (CPI).
If you believe that the rent increase you have been handed is beyond reasonable, you can choose to negotiate with your landlord or Property Manager. If negotiation does not work, then you are well within your rights to appeal your rent increase with the relevant rental authority in your state or territory.
How often can my rent be increased?
In Australia, how often your landlord or Property Manager can increase your rent depends entirely on which state and territory you live in, as well as the conditions of your rental agreement.
If you’re renting on a periodic lease (month-to-month), then the following timeframes apply:
- In New South Wales, South Australia, Victoria, Tasmania and the ACT, your rent may only be increased once every 12 months.
- In Queensland, Western Australia and the Northern Territory, your rent may be increased once every 6 months.
If, however, you’re renting on a fixed-term lease, your landlord typically has to write the conditions for a rental increase into your lease agreement to be able to up your price during your fixed term. Otherwise, they must wait until the agreement has come to an end to increase your rent.
How much notice does my landlord have to give me for a rent increase?
In the majority of states and territories in Australia, the typical minimum notice period for a rent increase is 60 days — however, there are a few exceptions.
ACT tenancy laws state that the minimum notice period for a rent increase is 8 weeks (56 days), while Queensland states 2 months, which is usually pretty close to 60 days in most cases.
The major exception is the Northern Territory, which, unlike every other state in Australia, only requires a minimum of 30 days’ notice from your landlord to increase your rent.
Once again, if you’re on a fixed-term lease agreement, then the terms of a rental increase will typically be outlined in the conditions. If there are no terms or conditions written into the agreement, then your landlord may not increase your rent until the agreement has run its course.
What method is used to calculate rent increases?
Your landlord may use any method to calculate your rental increase, however, there are a few common techniques that help them to make a more accurate and fair decision.
In many cases, landlords and Property Managers will survey the surrounding area of your rental property and look at the prices of similar properties to determine the going rate in the current market.
They can also choose to increase your rent in line with the latest increase in the Consumer Price Index (CPI) to ensure that your new rent price is in line with the cost of living.
If you believe that your landlord has unreasonably increased your rent, you can use factors like CPI and the surrounding area to help form your argument when negotiating with your landlord or the rental authority in your state.
How do I negotiate a rent increase?
As we’ve already mentioned, you’re well within your rights to negotiate your rent increase with your landlord. If you’ve always been a good tenant and you approach the conversation with reason, then you may be able to successfully negotiate a smaller increase—or even no increase at all—with your landlord or Property Manager.
If you find that negotiating does not work, then you can take your matter to your local rental authority or Tenant’s Union to dispute your increase. Be aware, however, that the onus will be on you to prove that the increase is beyond reasonable—and if you cannot prove this, the only thing you may end up achieving is a breakdown in your relationship with your landlord.
Do I have to agree to a rent increase?
The short answer here is no, you do not have to agree to a rent increase. However, if you don’t agree and you have exhausted all avenues for negotiating or having your rent reduced by your rental authority, then the only real option you may have is to find somewhere else to rent.
In this scenario, it’s worth weighing up whether moving out and finding a new place to live is going to cost you more or less than what your rent increase will cost you—especially in the current Australian rental market.
Keep in mind that every state and territory has their own tenancy laws
The most important thing to remember is that every state is different, and the laws can change at any time. That’s why it’s in your best interests to keep up to date with the latest changes to tenancy laws in your area as much as possible.
For a complete breakdown of the laws around rent increases in your state or territory, see the relevant links below:
- New South Wales
- Victoria
- Queensland
- South Australia
- Western Australia
- Northern Territory
- Australian Capital Territory
- Tasmania
So, the next time your landlord increases your rent, you should now have a clear understanding of your rights and know exactly what you can do if you want to negotiate or dispute your rent increase with your landlord or Property Manager.
Just remember: your rental property needs good property management
No matter where you choose to live in Australia, finding a rental property that’s being looked after by an experienced and high-quality Property Manager is paramount to ensuring a great tenancy.
The best Property Managers have all the right property expertise and skills, backed by innovative software tech like PropertyMe.
PropertyMe makes property management a simple and effortless process for everyone
As a tenant, you want to know that your Property Manager is equipped with the best technology to help you over the life of your tenancy. That’s why you need a Property Manager that’s empowered by software like PropertyMe.
PropertyMe is the most feature-rich cloud property management solution in Australia. With an easy-to-use interface, automated workflows, mobile app and simple client access, your Property Manager will have everything they need to manage your rental property with ease.
Plus, with the PropertyMe Mobile App, you can easily submit maintenance requests, pay your rent, view your property details and keep clear records of everything related to your tenancy in one easy place.
