How to push back on a rent increase

Rent increases are a stubborn reality of being a renter – and often a very stressful one.

But even though they’re routine, rent hikes are not necessarily set in stone. In fact, you might be able to reduce the proposed increase, or even negotiate your way out of it entirely.

Here’s how.

Know your rights

Unfortunately, there’s no cap on how much your rent can go up. (Except in the ACT, where rent increases are linked to inflation and cannot exceed 10 per cent above the CPI.)

But the good news is that rent increases can’t be set on a whim.

Every state and territory has strict rules about how often rental providers can increase the rent (usually every six to 12 months) and how much notice they need to give (typically 60 to 90 days). This applies to periodic leases only; fixed-term leases don’t permit rent increases, unless otherwise stated in the lease.

Your best bet is to check your state’s rental laws to ensure the proposed rent increase complies with local legislation.

Determine whether the increase is excessive

There’s no single percentage that automatically makes a rent increase excessive. Instead, it’s usually assessed by looking at the bigger picture.

While your rental provider may claim the increase aligns with average rents, it’s worth checking the data yourself to see if that’s accurate. A rent increase may deserve questioning if it’s well above comparable rentals, the condition of the property doesn’t justify the new price, or the property has deteriorated since the start of your lease.

“There’s often data available to get a sense of what average or median rents are in your area, which can be very helpful in supporting your case,” Cameron Bloye, deputy chief executive of Tenants Victoria, says.

“Look at properties with the same number of bedrooms and similar features.”

You should also log any maintenance problems, as ongoing or unresolved issues (even non-urgent ones) can undermine the increase.

“Consider the condition of your own property and any issues that mean it isn’t a fair comparison with other properties,” Bloye says.

“For example, if there’s mould, a broken heater, peeling paint or anything that reduces the amenity of the property. If the property has deteriorated since the start of your lease, that’s a valid consideration that should be taken into account.”

Start negotiating

Start by contacting your rental provider in writing, either via email or post, to make your request official. Present your case clearly and politely, so it’s professional but persuasive.

“You want to point to the evidence of why the rent increase would be unreasonable,” Bloye says.

“It’s helpful to remind the landlord that you’re a good tenant – paying rent on time, looking after the property and wanting to stay there – but that this increase would make it difficult.”

You should also attach your evidence, including any comparable rentals that support your case, maintenance issues and photos. Keep a copy of all correspondence for your records and to strengthen your position if the case escalates.

Outcomes and alternatives

• A successful rent negotiation doesn’t always end in a flat yes. Your rental provider might:
• Agree to a smaller increase than originally proposed
• Suggest a longer lease at a reduced weekly rate
• Maintain the current amount
• Stick with the rent increase, but agree to address repairs

In some cases, they may reject the negotiation entirely. You’ll need to decide whether to:

• Accept the increase
• Challenge it formally
• Or relocate to a more affordable property

Weigh up the cost of moving versus staying, including outstanding maintenance and the possibility of future rent increases.

The last resort: challenging a rent increase at tribunal

If negotiations stall, there is a formal avenue to challenge an increase.

Your state or territory rental authority or tribunal is responsible for overseeing rental disputes, including challenges to rent increases. You can apply for a free formal rent assessment, which usually involves evaluating the property’s market value and setting a maximum rent the provider must follow.

If going to a tribunal feels intimidating, free tenant support is available Australia-wide.

“It’s really important to know that, whatever state or territory you’re in, there are free services available,” Bloye says.

Remember, you can’t be penalised or asked to leave your rental if you ask for a formal rent assessment.

“If you don’t take action to enforce your rights, you miss out on what you’re legally entitled to,” Bloye says. “We always encourage renters to understand their rights and not be afraid to enforce them.”