What can you do when your landlord increases your rent?

In Australia, rental vacancies have plummeted as the cost of renting has risen.

The latest ABS stats show that 60.4% of renters are on fixed-term agreements, and 14.2% have a month by month agreement. There are millions of us who live with the risk of a rental hike.

So it’s important to know your rights.

There are some good things about renting:

Being able to live in places you can’t afford to buy
Being able to live somewhere new every six months if you want to
Not having to pay money for repairs and some bills

There are some bad things about renting:

The landlord/tenant relationship is unbalanced
You can’t always live in the place you want to at the price you want
You tend to live in fear of your landlord raising the rent

Here are some eye-opening stats:

According to the latest stats released by the ABS, 21% of Australian households own at least one other property. Of these, one-in-25 of them own four or more properties.

31% of Australian households rent. The average Australian renter spends 20% of their income on rent. And lately, rents have been going up.

It’s unsurprising, then, that in 2022, there are 2.72 million Australians under risk of rental stress.

So what can you do if your landlord raises the rent?

The first thing to do is to read your rental agreement (lease) carefully and know your rights: knowledge is power.

This can help you stay in a good headspace during a stressful rental negotiation process.

How much notice does your landlord have to give for a rent increase?

Your landlord must give you notice if they want to increase your rent.

The notice period depends on where you live, and whether you live under a fixed-term or periodic lease.

A fixed-term lease refers to a lease you sign that has a starting date and an ending date.

A periodic lease refers to a month-to-month agreement.

If you don't sign a new lease at the end of a fixed-term lease, and you don't move, you'll likely have a periodic lease.

You generally don’t have to pay any increased rent until your landlord gives you enough notice.

How often and when can a landlord increase the rent?

State	How often and when can a landlord increase the rent?
ACT	Periodic leases: Once a year with eight weeks written notice. Fixed-term leases: Once a year unless your lease states otherwise. You must receive eight weeks' written notice.
New South Wales	Periodic leases: Once in a 12-month period with 60 days written notice Fixed-term leases: Once in a 12-month period with 60 days written notice as long as it’s in your lease. Leases of more than two years: Once in a 12 month period with 60 days written notice
Northern Territory	During a tenancy: Every six months, with 30 days written notice, as long as it’s in your lease
Queensland	Periodic leases: Every six months with two months written notice Fixed-term leases: Every six months with two months written notice, as long as it’s in your lease
South Australia	Periodic leases: Every twelve months with 60 days written notice Fixed-term leases: Every twelve months with 60 days written notice, unless your lease states differently, or you agree to the increase.
Tasmania	Every twelve months with 60 days written notice, unless your lease states differently.
Victoria	Periodic leases: Every twelve months with 60 days written notice. Fixed-term leases: Once every twelve months unless your lease states differently. You must get 60 days written notice.
Western Australia	Periodic leases: Every six months with 60 days written notice. Fixed-term leases: At least six months after the lease begins, if it’s in the lease, with 60 days notice.

How much can your landlord raise the rent?

Unless you live in the ACT, there’s no upper limit by which your landlord can increase your rent.

In the ACT, rent must only increase by 110% of the Canberra CPI.

For all the other states and territories, rent rises can generally only be 'reasonable'. This means rents should only increase at the same rate as similar, nearby properties.

How can you fight against a rent increase?

So your lease is nearing the end and you get a notice that your landlord wants to increase the amount you pay.

You have four options:
1. Accept it
2. Try to negotiate
3. Challenge the increase
4. Decide to move somewhere else

Options 1 and 4 are pretty self-explanatory, so let’s focus on options 2 and 3.

How can you negotiate a rent increase?

Are you facing a rental increase you think is excessive? You can ask your property manager or landlord to reconsider. You can do this in person or in writing.

Arguments that might work in your favour

Your rent is rising above the general market rate in your area
Your place is in need of repair
Your place isn’t comparable to properties in the new price point (ie. if they have dishwashers, lift access, or car parking spaces, and you don’t)
You offer to pay some but not all of the rent increase
You offer to pay a graduated increase over time
You state that you’d like to be a long-term tenant

Arguments that might not work in your favour

You state that your personal cost of living has increased
You threaten to move, or issue an ultimatum
You state that the increase is excessive without backing it up

How can you challenge a rent increase?

If your landlord refuses to budge and you think your increase is excessive, you may be able to apply to a tribunal.

You generally need to do this within 30 days of getting your rental increase notice.

This might be free, or it might cost you money, depending on where you live.

Keep in mind that the decision may not go your way – especially if the increase is in line with the local area.

Here are some stories.

“My landlord wanted to increase my rent by around $40 per week. This would be a 9% increase on what I was already paying. I proposed a 4.5% increase instead, based on my desire to be a ‘long-term tenant’ paying a fair price – and also that every time it rained outside, it also rained inside due to a leaking ceiling. He offered a $25 increase instead, and to fix the ceiling. I was nervous it would backfire and relieved that it didn’t,’ said one person.

“So I had a rent increase from $560 per week to $700 per week with less than a 30 day notice of increase. I was on a month-to-month contract at the time as well so they attempted to lock me in for a twelve month contract on that rent.

Their timing was impeccable though because I just got the keys to a new place two weeks before I either had to sign the contract or leave the apartment. I tried negotiating a lower rent, but they didn't budge whatsoever even though we had been "top-notch tenants" for over a year. I did the whole song and dance up to the end (even though I knew I had another place) just for fun,” said someone else.