The information in this Fact Sheet is not legal advice. It is intended as a
general guide only. It applies only to legislation current in the state of
Victoria, Australia. For information regarding a specific tenancy problem, phone
the Tenants Union Advice Line on (03) 9416 2577. The Tenants Union accepts no
responsibility for actions based on this information, nor for actions based on
electronic translations of this information.
Notice
You cannot be given a rent increase more than once every 6 months. This
applies to periodic (ie month to month) tenancy agreements, and fixed-term
agreements where the agreement allows for a rent increase during the fixed term.
If there is a clause in your fixed-term agreement that allows for more than one
rent increase during a 6-month period, it is invalid.
The landlord must give you 60 days notice in writing of a rent increase
(previously 90 days) and it must be in the prescribed form. If the notice is
sent by mail, they must allow an additional 2 business days for the notice to
reach you.
The notice can only provide for one rent increase and it must advise you of
your right to apply to Consumer Affairs Victoria to investigate the proposed
increase if you think it is unreasonable. The notice must also advise that you
have 30 days to make your complaint to Consumer Affairs. You can contact
Consumer Affairs on (03) 9627 6222 or 1800 136 716.
If a rent increase notice doesn't meet all of these conditions it is invalid.
This means you can ignore the notice and you don't have to pay the increase.
If a rent increase notice doesn't meet all of these conditions it is invalid.
Challenging a rent increase
If you think the rent increase is too high, you can request that an inspector
from Consumer Affairs Victoria come and inspect your home to determine whether
the increase is reasonable. You must make the request within 30 days of
receiving the notice.
Address your request to:
The Director Consumer Affairs Victoria
Level 2
452 Flinders Street
Melbourne 3000
The inspector should look at the state of repair, the facilities and any
services provided with the premises and compare the rent charged for your home
with that of similar properties in the same area. You should provide the
inspector with any information about the property that will support your claim
that the rent increase is excessive. This could include the state of repair of
the property, problems with the location, and any facilities or services
provided by you rather than by the landlord.
After the inspection, the inspector will provide you with a report. Once you
have the report you can apply to the Victorian Civil and Administrative Tribunal
to ask them to determine if the rent is excessive. You must apply within 30 days
of receiving the inspector's report.
If the Tribunal finds that the rent is excessive, it can order that the rent
not be increased or that it be increased by a lesser amount. It can also set a
period of time (up to 12 months) for which the landlord cannot increase the
rent. However the Tribunal will make these orders only if the proposed increase
is significantly more than the rent paid for similar properties in the area.
If the rent increase comes into effect before your case is heard at the
Tribunal, you should pay the increased amount until the Tribunal has made a
decision. If the decision is in your favour, the Tribunal can order that you be
reimbursed any increased rent that you have already paid.
Reduction in services or utilities
If your landlord reduces any services or facilities available with the
property (eg closes a communal laundry), you can request a report from Consumer
Affairs Victoria as to whether the rent on your property should be reduced. Once
you have the report, you can apply to the Tribunal for an order that the rent be
reduced. The Tribunal will only set a new rent if the rent is significantly more
than the rent paid for properties with the same facilities in the same area.
Negotiating with the landlord
It is worth trying to negotiate with your landlord or agent over a proposed
rent increase. They may be willing to reduce the amount of the increase,
especially if you are an established and reliable tenant or you would have to
move out because of the increase.
If you have an inspector's report you can also use this to try and negotiate
an agreement with your landlord or agent so you don't have to take the next step
of going to the Tribunal. Make sure any agreement you reach is in writing,
signed by yourself and the landlord or agent.
Refusal to pay the increase
If the landlord or agent has given you a valid notice of a rent increase and
you refuse to pay it, you will be in rent arrears. Once you are 14 days in
arrears, the landlord or agent can give you a 14-day Notice to Vacate and apply
to the Tribunal to have you evicted. You would have the chance to present your
case at the Tribunal but there is always a possibility that you will be evicted.
See the Avoiding Eviction for Rent Arrears Fact Sheet or contact the Tenants
Union or another tenant advice service for more information.
For more information phone the Tenants Union Advice Line on (03) 9416 2577.
--------------------------------------------------------------------------------
PO Box 234, Fitzroy, VIC 3065, Australia
Admin 9419 5577
Advice 9416 2577
Fax 9416 0513
Last updated 7 November 2003
