HOW OFTEN CAN A RENTAL PROVIDER RAISE MY RENT?

There are only two reasons that a Rental Provider can issue a rent increase to their Renter…

The Rental Agreement has an end date

The first reason you may be issued with a notice of rent increase is if the rental agreement has an end date. This means the agreement is a fixedterm agreement and most fixed term agreements go for 5 years or less. If the agreement has an end date rental providers can only increase the rent if the agreement states they can and even if so, it can only occur as often as the rules allow.

• Where the rental agreement began before 19 June 2019 the rent cannot be increased more than once every 6 months

• Where the rental agreement began after 19 June 2019 the rent cannot be increased more than once every 12 months

• There are different rules again if the rental premises is a caravan park or a rooming house

The same rules above apply if a rental agreement is a periodical agreement, or monthby-month agreement. Periodical agreements usually start after a fixed-term lease ends.

The fixed-term Rental Agreement is longer than 5 years

The second reason that a rental provider can increase rent is where the fixed-term agreement is longer than 5-years. This is called a long-term rental agreement, or long-term lease. In a long-term lease, the rent may not be increased more than once every 12-months, and this is only if the agreement states so.

Are rental increases legal?

If a rental increase is served correctly under the Victorian Residential Tenancy ACT and in accordance with the above rules then they are legal.

What happens when a Rental Provider increases a Renters rent?

Your Property Manager will begin looking at a rent increase around 3 months before the increase is due.

They will consult with the rental provider and advise them accordingly. If an increase is recommended, a Rental Market Report containing evidence of current market trends and price index will be prepared and then the Renter will be issued with a rental increase notice no less than 60 days prior to the date the rental increase is due to begin.

How much can a Rental Provider raise a Renters rent?

The Residential Tenancy Act does not state exactly how much a Rental Provider can raise rent however when raising a Renters rent, a Rental Provider must provide evidence supporting their decision and how they have calculated the rent increase.

How do you calculate a rent increase?

1. The Consumer Price Index (CPI) as provided by the Australian Bureau of Statistics

2. The Statewide Rent Index which is based on the average rent prices in Victoria

3. A fixed percentage increase

4. A fixed dollar amount

A Rental Provider cannot raise the rent to penalize a Renter for any reason i.e. if they have broken the rental agreement. It should also be noted that changes to the Renter’s bond will not occur when there is a rent increase unless there is a long-term agreement that is being renewed for a further fixed-term of 5-years or more.