How do I fight a rental increase from my landlord?

If you’re renting, you’ll know that rental increases are a fact of life.

But what options do you have when you think your landlord is asking for too steep a hike?

Here’s what you need to know about disputing a rent increase.

What should I do if my landlord wants to bump up my rent?

We spoke to Joel Dignam, the executive director of Better Renting, an advocacy group for tenants.

“The first step is to check that the rent increase meets the basic legal requirements,” Mr Dignam says.

“Is there the correct notice period, is notice given in the right way?

“The specific requirements will depend on where you live, so it can be worthwhile checking with your local tenants advice service to be sure.

“You certainly can’t trust that your landlord or agent knows or complies with the law, sadly.”

Housing is a national issue, but there’s no catch-all national rental authority — that’s because it’s something handled at a state level.

That means that each state and territory has its own rules when it comes to renting and there are different bodies to deal with rental matters.

“If the rent meets the basic requirements, then it’s generally a question of considering the amount,” Mr Dignam says.

“You may have the option to argue that the increase is excessive, which is partly about market conditions but could also consider issues like the state of repair of your current property.

“If you do think the increase is excessive, you’d generally have to apply to your local tribunal within a certain time frame, or the increase automatically takes effect.

“So don’t delay too long, but probably the best first step is just to write to your lessor and see if you can negotiate something else without having to go to tribunal.”

What does ‘going to tribunal’ mean?

You can take the matter to your state or territory’s Civil Administration Tribunal (CAT) to decide on the best outcome.

It’s much less formal than a criminal court case.

However, the decisions can be enforced.

How much are landlords allowed to increase rent?

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.

How do I negotiate with my landlord?

“It’s really hard to negotiate in most cases — you don’t have much leverage, and you may put yourself at risk of retaliation,” Mr Dignam says.

“But it’s worth thinking what leverage you may have — if you’ve been there a while and are known and trusted, they may prefer a lower rent increase if it means you’ll stay.

“Often there are also neglected repairs that haven’t been done for months.

“This is a strong ground for the rent increase not to happen, but in reality, it may be that the rent increase does happen but you can at least negotiate to finally get the repairs done.

“It’s also possible that the increase is being pushed by the agent and the landlord may not even be aware of it — so if you have a way to get in direct contact with your landlord that may help, although, of course, they may still want the rent increase to proceed.”

Should I go to tribunal?

It might help to think of taking the matter to tribunal less as a court case you see on television crime dramas and as “something like a negotiation”, as Mr Dignam describes it.

“Just showing you are willing to go to the Tribunal may help resolve an issue without having to go that far.

“I know I’ve done this with past bond disputes: just showing that you are willing to stand up for yourself can help to reach a compromise solution.

“You won’t necessarily have to go to the tribunal to get a result, sometimes just even mentioning that can be enough.

“It’s generally in a landlord’s interest to avoid an issue going to tribunal, because it is inconvenient, annoying and can cost them money.

“Unfortunately, the same barriers exist for renters, which often makes it harder to get fair outcomes.”

How hard is it to take matters to tribunal?

“Generally, to take a matter to the Tribunal you simply fill out a form and make an application, also paying a fee to do so,” Mr Dingnam says (more on that below).

“This is when you’d include your evidence, so it’s important to have as much as possible written down — just referring to verbal conversations won’t carry much weight as evidence.

“If you are arguing, for example, that a rent increase is excessive, you’d want to show evidence of other similar properties that are being rented out for less.

“The tribunal then sends your application to your agent/landlord, who would be the ‘Respondent’.

“Sometimes this might be enough to get a resolution, otherwise the next step would be a hearing.

“Although this process can be time-consuming and tedious, it’s much less elaborate than going through the court system.

“Typically, you represent yourself, lawyers aren’t involved, and they are more understanding to help you through the process.”

Is it expensive to take a matter to a rental tribunal?

“The most obvious cost to take a matter to a Tribunal is the filing fee,” Mr Dignam says.

“When you apply, you can actually ask that your landlord reimburse you the cost of the filing fee if you are successful.”

As for other costs, it really depends on your case and your personal circumstances.

Mr Dignam points out the time and effort that could go into your case should be considered.

“You may have to take time to prepare your evidence, or to appear at a hearing.

“This is a barrier for lots of renters but if it’s any consolation, your real estate agent is charging your landlord hundreds of dollars an hour to appear in tribunal, so there’s some poetic justice there.

“The other potential cost is the risk of retaliation.

“Unfortunately we have a really tight rental market that is weighted against renters, and even if you succeed at tribunal you may find yourself subject to a retaliatory eviction, or just struggle to get a good rental reference if you later choose to move out.

“I want renters to be aware of these potential downsides, but overall I do think more people should be willing to go to the tribunal.

“Every case lodged helps to show the need to do something about rental issues, and every victory helps not only you, but every other renter.”

How much are filing fees?

Again, this depends on your state or territory rules.

It also depends on what kind of action you’re taking and your personal circumstances.

For example, if have a Concession Card or are using the services of a community legal centre, you might be eligible for a reduced fee in some jurisdictions (NSW, QLD).

You can also apply to have your fee waived in some states (ACT, NT, NSW, QLD).

Here’s a state-by-state breakdown of tribunal fees — but keep in mind that these are basic fees and don’t include extras.

If the matter goes to a hearing, for example, you may have to pay extra.

Tap on your state or territory for more details.

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