John Bath calls 2024 his “annus horribilis”.
He’d been renting his two-bedroom home in Midland, Western Australia, since 2020.
A new landlord bought the house in 2022, but he stayed on as a tenant, paying $250 a week.
But a few months ago, his landlord mentioned needing to increase his weekly rent.
Mr Bath was shocked to receive an email proposing an extra $100 a week, based on a property evaluation.
The aged pensioner sent an email back disputing the increase.
Then a property agent informed him the rent would actually be going up by $200 a week.
That would have taken his rent from $250 to $450 a week.
“I couldn’t pay that,” Mr Bath says.
Not long after that came the eviction notice — which, according to state law, was completely legal.
‘No cause’ evictions
Western Australia laws allow landlords to evict tenants without providing a reason, so long as they give enough notice, a WA community legal charity Circle Green fact sheet points out.
For periodic agreements, it’s 60 days.
For fixed-term agreements, it’s 30 days.
Mr Bath and his daughter Alia went to their local member of parliament, the state’s consumer protection body and sought legal advice.
And they were shocked to find there was very little these services could do aside from trying to negotiate with the landlord on Mr Bath’s behalf.
“I’m thankful for all those services,” Ms Bath says.
“At every stage, there has been nothing they can do because the landlord is operating within the law,” Ms Bath says.
We contacted both the landlord and the property agent asking about the rental increases and the eviction notice.
The landlord did not respond, while the property agent’s company declined to comment.
However, in a screenshot of the landlord’s initial email about the rent increase seen by the ABC, she said it was based on a market valuation from November.
“The expected rent for this property is $400 unfurnished,” the email said.
A tough market
An Australian Property Monitors report on Mr Bath’s home available on the real estate website Domain listed three similar properties available for rent — two were $425 a week and one was $480.
Realestate.com.au listed the median weekly rental rate for a house in the area as $500 a week, a figure based on data from the past 12 months.
It calculated the rates increased by more than 30 per cent.
For a one-bedroom unit, the median rate was $380 a week — a jump of about 20 per cent.
For a two-bedroom unit, it was $450 — that’s also an increase of about 20 per cent.
According to these figures, Mr Bath’s rent was well below the current market rate and finding an alternative at the same price point would be very unlikely.
Exhausted all avenues
In the end, there was nothing else for it.
“The best advice that he got — twice — was to stay in the property beyond eviction date and make them take you to court,” Ms Bath says.
But that wouldn’t result in a courtroom victory, it would just mean “you won’t be homeless quite so quickly”, they said.
And rather than spending time and effort simply delaying the inevitable, Mr Bath moved in with his daughter.
Can rent be increased during a lease?
We spoke to Joel Dignam, the executive director of Better Renting, an organisation that describes itself as a “community of renters working together for stable, affordable, and healthy homes” about what renters’ rights are.
Generally speaking, the rent can be increased once every 12 months for most jurisdictions.
But it’s once every six months in the Northern Territory.
Landlords used to be able to increase rent twice a year in WA, but new reforms reduced it to annual increases.
The state’s consumer protection website says rent increase restrictions are “likely to start July 2024”.
And there are other rules that apply depending on where you live, Mr Dignam says.
“You have to get the correct amount of notice for the increase.
“The rent increase must be communicated in the correct way — in Victoria, for example, they must say how they calculated the increase and give enough information that you could potentially dispute it.”
However, there are nuances to this. Tap your state or territory below to see the detailed rental rules:
ACT
Normally, rent cannot be increased during a fixed-term tenancy agreement unless the agreement specifically sets out the amount of the increase or a method for working out the increase.
However, upon a fixed term of at least 12 months expiring, the lessor is allowed to increase rent upon giving you eight weeks’ notice of the proposed rent increase.
If you are in a periodic tenancy, the rent can generally be increased once every 12 months.
The lessor is likewise required to give you eight weeks’ notice of a proposed rent increase.
Source: Legal Aid ACT
NSW
New South Wales’ rules are divided up into four situations. In many cases, a tenant must get at least 60 days written notice of an increase.
Fixed-term agreement of less than two years: The rent can only be increased if your agreement sets out the amount of the increase or how it will be calculated. The agreement must be specific about the amount or calculation of the increase. It cannot state that the rent will increase “in line with market value” or “consumer price index”.
A fixed-term agreement of two years or more: The rent can only be increased once in a 12-month period.
A periodic (continuing) agreement: Rent can only be increased once in a 12-month period.
A written agreement: A landlord cannot increase the rent during the first six months.
Source: NSW Fair Trading
Northern Territory
Rent can only be increased during a tenancy if the right to do so has been written into the tenancy agreement.
The agreement must also state the amount of the increase or the method of calculation.
The landlord must give at least 30 days’ notice in writing before increasing the rent.
The date your rent will be increased must be either:
- at least six months after the tenancy starts
- or six months from the last increase.
If the original tenancy agreement does not provide for a rent increase and doesn’t specify the amount of the increase or method of calculation, rent can be increased during the tenancy agreement or during any extension of the original term if you and the landlord agree.
Source: Northern Territory Government
Queensland
New laws came into effect on June 6.
Rent cannot be increased unless it has been at least 12 months since the current amount of rent became payable.
The 12-month period applies even if the last rent increase was related to a different tenancy agreement with another tenant or by a previous agent or owner of the property.
The rules are different depending on the type of agreement:
Fixed term agreements
Rent cannot be increased during a fixed term unless it is stated in the tenancy agreement and all of the following occurs:
the agreement states the rent will be increased
the agreement states the new amount (or how it will be worked out)
the property manager/owner gives the tenant at least two months’ notice in writing for a general tenancy and four weeks’ notice for a rooming accommodation agreement
it has been at least 12 months since the last increase for the premises or room.
The property manager/owner must also give the tenant or resident separate written notice of the increase. It does not automatically come into effect because it is in the agreement. The notice should include the increased amount and the day it takes effect.
Periodic agreements
Rent can be increased if it has been at least 12 months since the current rent amount became payable and the property manager/owner gives the tenant or resident at least:
two months’ notice in writing for general tenancies
four weeks’ notice in writing for rooming accommodation agreements.
If there is a fixed term agreement in place which is to become a periodic agreement, then two months’ notice in writing can be given prior to or on the commencement of the periodic agreement. However, the rent increase can only take effect at least two months after the commencement of the periodic agreement.
Source: Queensland’s Rental Tenancies Authority
South Australia
Generally, rent can be increased after 12 months from the date of the last rent increase or from when the agreement started.
Fixed-term agreements
A condition allowing for a rent increase must be included in the agreement. It needs to say how the increase will be worked out, such as according to CPI.
At least 60 days’ written notice still needs to be given and the increase cannot start until 12 months after the agreement began, or the rent was last increased.
Fixed and period agreements
Rent can be increased:
- if at least 60 days’ written notice is given and the increase starts at least 12 months after the agreement began, or the rent was last increased.
- with an offer for a lease extension, provided it’s been 12 months since the agreement started, or the rent was last increased.
- if the specific amount of the increase and date it will commence is included as a condition in the agreement, for example, rent will increase to $400 per week from 1 July.
- if the tenant agrees to the increase. This usually happens if the property has been improved, for instance, if an air conditioner is installed. Any agreement should be clear and in writing.
- within 60 days of the Housing Safety Authority removing a rent control notice by giving at least 14 days’ notice
- in a community housing property — see information about rent increases and decreases.
Source: South Australian government
Tasmania
The rules around rent increases are designed so that a tenant knows their rental obligation for at least a 12-month period. Therefore, in most cases, rent cannot be increased mid-lease — it can only be increased:
- at the beginning of the lease; OR
- at lease renewal or extension
If the lease is longer than 12 months (18 months for example), rent can be increased 12 months after the start of the lease.
If the lease is less than 12 months, rent can only be increased at least 12 months after the tenancy started, even after the lease is extended or renewed.
Source: Consumer, Building and Occupational Services Tasmania
Victoria
The frequency of rental increases depends on the type of rental agreement and when the agreement was signed.
Agreements (leases) shorter than five years:
Rental agreements that have an end date are fixed-term agreements. Most go for 5 years or less.
Rental providers can only increase the rent if the rental agreement says they can, and only as often as the rules below allow. Otherwise, they must wait until the end of the agreement.
If the agreement does say rent can be increased, there are rules about how often:
- for agreements that started before 19 June 2019, the rent can’t be increased more than once every 6 months
- for rental agreements that started on or after 19 June 2019, the rent can’t be increased more than once every 12 months
- for rental agreements for rooming houses and residential or caravan parks starting after 29 March 2021, the rent can’t be increased more than once every 12 months.
Agreements (leases) longer than 5 years
Rental agreements that have an end date are fixed-term agreements. Some go for more than 5 years – these are called long-term rental agreements. They used to be known as long-term leases.
In a long-term agreement, rent must not be increased more than once every 12 months, and only if the agreement says that the rent can be increased.
Periodic (month-by-month) agreements:
Rental agreements that don’t have an end date are periodic rental agreements. They are often called month-by-month agreements. People usually start a periodic agreement when a fixed-term agreement ends – this happens automatically unless a new fixed-term agreement is signed.
In periodic agreements, there are still rules for how often the rent can be increased:
- for periodic rental agreements that started before 19 June 2019, the rent can’t be increased more than once every 6 months
- for rental agreements that became periodic on or after 19 June 2019, the rent can’t be increased more than once every 12 months.
This is true even if it has been month by month for several years. If the rental provider increases the rent, the renter can accept the increase, ask for a rent assessment or tell the rental provider they want to end the agreement and leave, known as issuing a notice of intention to vacate.
Social housing
There are special rules for the amount of rent paid by people living in social housing. If you are living in this type of housing, the rent you pay can be based on the market rate or your income. The market rate is assessed once a year and income is assessed twice a year. If they change, the amount you have to pay might change.
Source: Consumer Affairs Victoria
Western Australia
Periodic tenancy:
Where a tenancy is periodic (no pre-determined finish date) rent increases can occur at six-monthly intervals (but no sooner) and tenants must be given at least 60 days’ notice in writing, with details of the amount of the rise and the day it will take effect. The lessor must use Form 10 or Form 11 available from the notices page. You only have to pay the increase if proper notice has been given.
Fixed-term tenancy:
Rent in a fixed-term tenancy can only be increased if the written agreement specifies how much the rent increase will be or the method of calculating the rent increase is shown (eg by a percentage). If the rent is able to be increased, it can take effect no sooner than six months after the commencement of the tenancy agreement and the date of the last increase. The lessor must give at least 60 days’ notice of the increase.
When an existing tenant’s fixed lease ends, and they enter a new fixed term tenancy, or the lease becomes periodic:
If an existing tenant/s fixed-term lease agreement ends, and they continue to rent the same property on a new fixed-term agreement, or if the lease rolls into a periodic agreement, a rent increase cannot take effect for the first 30 days of the new agreement. This means that the tenant will continue to pay rent at the old rate for the first 30 days of the new agreement.
Source: Department of Mines, Industry Regulation and Safety Western Australia
What’s the maximum rent increase allowed?
For much of Australia, there’s no limit to how much landlords can increase the rent.
However, the ACT has what’s called a “prescribed amount”, which is tied to inflation figures.
Tap on your state and territory for more details.
ACT
“The prescribed amount is based on the rents component of the Consumer Price Index (CPI) for Canberra.
“The CPI figures are published every quarter on the Australian Bureau of Statistics website.
“The prescribed amount is 110% of the percentage increase in CPI for rents. That is, a lessor can increase the rent on a property by 10% more than the increase in the CPI.”
Source: ACT Civil and Administrative Tribunal
NSW
“If you cannot reach an agreement with your agent or landlord, you:
- can apply to the NSW Civil and Administrative Tribunal (NCAT) within 30 days of receiving the rent increase notice if you believe that the rent increase is excessive
- will have to prove that the increase is excessive.
“Some of the main evidence the Tribunal considers is comparable rents for similar properties in the same area, the state of repair and amenities provided in the property and the landlord’s expenses.”
Source: Fair Trading NSW
Northern Territory
“The agreement must also state the amount of the increase or the method of calculation.”
Source: Northern Territory Government
Queensland
“A tenant or resident can dispute the increase if they feel it is excessive by discussing the issue with the property manager/owner. If the tenant or resident still feels the increase is excessive, they can apply for dispute resolution once the new agreement is signed. They may also apply to the Queensland Civil and Administrative Tribunal (QCAT) for a decision.”
Source: Rental Tenancies Authority Queensland
South Australia
“If a tenant can prove the total rent after it has been increased is excessive, they can apply to the South Australian Civil and Administrative Tribunal (SACAT) for the rent to be changed.”
Source: South Australian government
Tasmania
“If you think a rent increase is unreasonably high, you can apply to the Residential Tenancy Commissioner to have the rent increase reviewed…
“The Commissioner can make an Order that a rent increase is reasonable, or that it is unreasonable and specify a different amount.”
Source: Consumer, Building and Occupational Services Tasmania
Victoria
“The law doesn’t say exactly how much a rental provider can put the rent up by.
“However, the law does require a rental provider to give their renter information about how they have calculated the rent increase.”
Source: Consumer Affairs Victoria
Western Australia
“The amount of rent charged at the start of a new tenancy is generally controlled by market forces, but if the tenant/s believe the rent is too high they can apply to the Magistrates Court requesting a reduction, or to argue against a proposed increase.”
Source: Department of Mines, Industry Regulation and Safety Western Australia
Where does that leave renters?
“It feels very unjust,” Mr Bath says.
He’s living with his daughter for the moment, but it doesn’t feel like a long-term solution.
“Although I’m now quite happy, somewhere down the line I’m going to have to find permanent accommodation,” he says.
“I still don’t know what my future holds for me.”
It’s something that weighs on his daughter’s mind too.
“My dad is a gentle man who spends his time on watercolour paintings and arranging choral works, and we all had the expectation that that is what his retirement years would be about,” Ms Bath says.
Instead, these past few months have been clouded by stress and uncertainty.
“From my perspective, I just think that we have to stop thinking of residential property as an investment,” Ms Bath says.
“Somebody’s living situation is not a reasonable place for someone to turn a quick dollar.”
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