How much can my landlord increase my rent by?

When can my landlord increase my rent?

This is one of the most common questions that our advice hotline and I receive from tenants (and landlords) and yet the answer is very simple.

Your landlord can only increase your rent once every 12 months – either from the date of the last increase or when your agreement started. It doesn’t matter what type of lease you have – the 12-month rule is absolute.

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If you are in a fixed term lease – that is, a lease that has a start date and a specific end date – then your lease must contain a condition that specifically allows for the landlord to increase your rent. It must also state how any rent increase will be calculated. If it does, then the rent can be increased after the landlord gives you 60 days notice and 12 months has passed since the beginning of the lease or the last increase.

Your landlord may also increase your rent with an offer of extension. The 12-month rule still applies though and it is then up to you to decide whether or not to sign the extension.

Rents go up. It’s important to know your rights as to when they can and how to fight back if you think they’ve gone up by too much.

If you are in a periodic lease – that is, a lease that has a start date but no end date – then your landlord must give you 60 days notice in writing.

We also get a lot of calls from tenants who say that their landlord has put their rent up a ridiculous amount either because they don’t know the market price or they want to get rid of you as a tenant.

However, while there is no legislation setting the amount of a rent increase, a tenant can apply to the tribunal for an order declaring the rent to be excessive and for it to be reduced. A tenant must apply to the tribunal within 3 months of the rent increase.

Knowing the rules will save you some headaches.

The tribunal will then consider factors set out in the law but perhaps the most important are those relating to the general level of rents for comparable properties, the state of repair and general condition of the premises and if the increase is disproportionate considering the amount of rent payable.

If you do apply to the tribunal for an excessive rent order, make sure you are prepared and have all the evidence that you need.

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Rent increases can be tricky – no tenant likes paying more rent – but don’t be afraid to talk to your landlord or property manager and put your views forward. Your landlord may be happy to negotiate a lesser amount, particularly if you are a long standing and responsible tenant. Good communication at all times is the key.

Paul Edwards, Real Estate Institute of South Australia. Supplied.

– Answer provided by Paul Edwards, REISA Legislation and Industry Adviser

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