How Much Can You Increase Rent By

Hearing that the hire might be going up is news no tenant wants to hear, however information technology'southward a fact of life for many renters.

But how much tin a landlord increment the rent by exactly? And when tin can they do it? Do tenants accept a right to negotiate or complain? Here's everything you need to know.

What's a reasonable hire increment?

Unsure what reasonable rent is? Dr Diaswati Mardiasmo, primary economist for PRD, explained that the trick is to look at comparable backdrop and compare what they accuse in rent. If your rent is considerably lower than the median rent then y'all may be in the position of existence asked for more.

The overall rental market in a particular expanse – and where a property sits within it – is the "comparative market place". For example, if a suburb's median rent has gone up by 5% on boilerplate and a property is well situated and in good condition, it's logical for it to rise as well, Dr Mardiasmo explained.

Unfortunately, however, according to Dr Mardiasmo there isn't a nationwide definition of a "reasonable" hire increase.

She said rent increases are generally influenced by supply and demand, comparative markets and the availability of a substitute. When there is more demand than supply, landlords have more power when it comes to rent negotiations.

The availability – or non – of an exact comparing also has a large influence; that is to what extent can a tenant find an equivalent, suitable holding? If at that place aren't many options, again the landlord has more than negotiation power.

Lisa Adaway, a belongings managing director at Queensland-based Hugo Alexander Property Group, said what is deemed "reasonable" can change case-past-case. Information technology's influenced by a number of factors.

"Typically in Queensland, over the past couple of years, if a belongings is going to run across an increment, nosotros would commonly meet an increment of between ii% and x%," she said.

"We have had an increase on near every property in our portfolio over the past 12 months. The largest increase nosotros have had was 25%."

How ofttimes can a landlord increment your rent by and how much notice is required?

How often a landlord can increase a tenant's rent by and how much notice is required differs between states, but generally speaking, information technology can't exist done during the tenancy, unless it's past agreement or the lease allows for it. If a landlord wants to increase the rent, it's usually done at the end of a lease, earlier a new ane is signed.

Dr Mardiasmo said the hire corporeality stated on the lease agreement unremarkably remains the same for the life of the lease, whether that'due south six or 12 months.

Rental images for flatmates story. Picture: Getty

The amount of hire usually lasts the unabridged length of the lease agreement. Picture: realestate.com.au

"There tin can be some instances where landlords can increase hire during a fixed term, withal this volition need to be stated inside the tenancy agreement from the get-go," she said.

Kasey McDonald, the head of leasing at property management agency :Different said when it comes to detect, the rules besides differ state-to-state.

In Victoria, for example, if the agreement allows for an increase, the landlord has to give 60 days' notice in writing, she said. The rules in New South Wales and Queensland are similar.

Can a landlord backdate a hire increase?

No, a rent increase cannot be backdated, Ms McDonald said. That's because in every state, the landlord has to provide notice of some kind.

How to negotiate rental increases

Tenants tin become into negotiations with their landlord when a rent increase is proposed, only they should be prepared, Ms McDonald said.

Here are some steps to have during a rental increase negotiation co-ordinate to Ms McDonald:

Keep beside of what is happening in your local rental market
Provide links to properties that are currently advertised to justify why you lot believe the rent increase suggested might not be fair
Counterbalance up the pros and cons of potentially moving house if you're not happy to pay more each week in rent
If the landlord persists with the request then consider negotiating on toll, for example, the landlord may accept requested a rise of $twenty per week, just you might be happy to pay $x per week.
Consider other means to compromise, like offering to sign a longer lease at the existing rent
Always have evidence fix, remain calm and be polite when approaching and negotiating with your property managing director

It'south important for tenants to keep an centre on rental prices within their market. Motion-picture show: realestate.com.au/rent

What tin y'all do if you think your rent increment isn't reasonable?

No one wants to have to pay more coin for something they already get, but if y'all're convinced the asking is unfair then y'all should speak to your landlord or property manager.

If yous don't have luck pushing back on the asking there are official channels open up to tenants too, Dr Mardiasmo said, including country regime civil and administrative tribunal bodies.

In determining whether or not the increased cost is unfair these bodies look at the range of market rents usually charged for comparable properties; the difference betwixt the proposed and current hire; the state of repair of the property; term of the tenancy and the menstruation since the last rent increase, if any.

For more information on civil and administrative tribunals, visit the relevant ane:

New South Wales – NSW Civil and Administrative Tribunal (NCAT)
Queensland – Queensland Civil and Administrative Tribunal (QCAT)
Tasmania –Consumer, Edifice and Occupational Services (CBOS)
Victoria – Victorian Ceremonious and Administrative Tribunal (VCAT)
Australian Capital Territory – Deed Civil and Administrative Tribunal (ACAT)
Northern Territory – Northern Territory Civil and Administrative Tribunal (NTCAT)
South Australia – Consumer and Business Services (CBS)
Western Australia – Consumer Protection