Factsheet 04 [PDF]

As a tenant you have rights under the Residential Tenancies Act 2010 and Residential Tenancies Regulation 2010. This factsheet explains the law in NSW about how rent may be increased.

How the rent may be increased

The landlord/agent may increase the rent provided that:

• they give you correct written notice of the increase
• a rent increase is permitted under your residential tenancy agreement.

If you are a tenant of a social housing provider, see ‘Social housing tenancies’ below.

How often the rent may be increased

This depends on the type of tenancy agreement you have – see the table below.

A fixed-term agreement is for a specified period (e.g. 6 months). A periodic agreement is one where the fixed term has expired or no fixed term is specified.

Fixed-term agreements of 2 years or less

The landlord/agent cannot increase the rent if you have a fixed-term tenancy agreement of 2 years or less – unless your agreement sets out the amount of the increase or the method of calculating it.

Correct notice of a rent increase

The landlord/agent must give you 60 days written notice of a rent increase. The notice must specify:

• the increased rent
• the day from which the increased rent applies.

If a notice is posted to you, an extra 4 working days must be allowed for delivery.

If you are not given correct notice, you do not have to pay the increased rent – the landlord/agent must issue another notice if they want to increase the rent.

Even if details of the rent increase are set out in your residential tenancy agreement, you must still get a rent-increase notice before the rent can be increased.

You think a rent increase is excessive

You can:

• negotiate with the landlord/agent to lower or withdraw the increase
• apply to the Consumer, Trader and Tenancy Tribunal (CTTT) for an order that the new rent is excessive. You must apply within 30 days of receiving a rent-increase notice.

Negotiating a smaller rent increase

First, check that you have been given correct notice of the increase (see above).

Contact the landlord/agent and ask to meet with them. Explain that you are a good tenant and you want to stay.

If this does not work, you could offer to pay a little extra, or to pay the increase gradually over 6–12 months. If the landlord/agent seems interested, put a proposal in writing.

While negotiating, you should apply to the CTTT within the time limit in case you cannot come to an agreement.

Applying for an excessive rent order

If the CTTT finds the rent increase excessive, it will make an excessive rent order. The order will specify:

• the amount that the rent must not exceed
• the day from which this maximum rent applies – for a period of up to of 12 months.

When determining if a rent increase is excessive, the CTTT will consider:

• rents for similar premises in the same or a similar locality (‘general market level of rents’)
• the landlord’s outgoings under the tenancy agreement
• any fittings, appliances or other goods, services or facilities provided with the premises
• the state of repair of the premises
• the accommodation and amenities provided in the premises
• when the last increase was
• any other matter it considers relevant.

The CTTT will not consider your income or your ability to afford the rent increase.

Preparing a rent-increase case

To prepare a strong case, you can:

• look at similar properties in your area (at least 3), take photos, and gather evidence of the rent for the properties (through real estate agent listings or statutory declarations from current tenants)
• refer to the latest Rent and Sales Report from the Housing NSW website (www.housing.nsw.gov.au), which has information about average rents in every local government area in NSW
• make a list of repairs done by the landlord (if any)
• make a list of all other rent increases over the time that you lived there
• gather receipts for any work you have had done to the premises with the landlord’s agreement
• take photos showing the condition of the premises
• find out if council and water rates have increased over the last few years – get this in writing if possible (in case the landlord claims increased charges as a reason for the increase).

Newspaper clippings advertising similar premises will not be enough evidence for the CTTT.

For further advice about preparing a rent-increase case, contact your local Tenants Advice and Advocacy Service (TAAS).

Social housing tenancies

Housing NSW and the Aboriginal Housing Office do not have to give 60 days written notice to change a tenant’s rent rebate.

If you want to dispute a change to your rent rebate, you can appeal to the Housing Appeals Committee (you cannot apply to the CTTT about it).

If your rent rebate is cancelled, you can apply to the CTTT for an excessive rent order (see above).

Contact your local TAAS if you have any questions about or problems with social housing rent increases or rent rebates.

Contacts

• Consumer, Trader and Tenancy Tribunal, phone 1300 135 399, www.cttt.nsw.gov.au
• Housing Appeals Committee: phone 02 9715 7955, free call 1800 629 794, www.hac.nsw.gov.au

January 2011

The information in this factsheet:
• is intended as guide to the law and should not be used as a substitute for legal advice
• applies to people who live in, or are affected by, the law as it applies in New South Wales, Australia.
© Tenants' Union of NSW.