As a tenant, is there anything I can do to prevent my landlord from increasing rent at the end of my lease if I want to renew?

TwentyTwoCarats on 06/10/2020 - 16:24

Here's the details to help with context:

  • Melbourne CBD/Docklands area, $500 pw
  • 2 Bed 1 Bath 1 Car, fairly modern
  • My 6mth Lease ends Jan 2021

Firstly, is there some VIC law that states how much a landlord can increase rent by? I tried looking but I cannot find that, and apparently they can increase with no limit? Sounds crazy but to my knowledge so far that's how it is… the only thing I could find is that the rental increase must be "reasonable" but what does that even entail?

So although I still have about 3 months left until my lease is over, I was doing some research on Domain. I found that similar apartments in this area, including some that are in my building, were advertised with rent in the $550-650 pw range. That doesn't mean that's actually how much tenants are paying, but maybe it's some indication that the rental prices have increased? I have found some other nearby apartments who haven't increased much and are still at the $480-550 range but those apartments aren't as modern or neat as mine in my opinion. It's hard to predict what the market may be like in 3 months time as we're in a very random time right now.

Anyway, is there anything I can do to ensure I can keep paying the same rent and extend my lease by 6/12mths? I realise the landlord has all the power, but is there something I can do with the real estate agency that's managing my place? Haven't ever contacted my landlord directly. In terms of my history, I've always paid the rent on time, maintained the place well and been a normal good tenant, but I feel like that doesn't really mean anything. I guess I would have more leeway if I say that I'll renew on a 12mth lease?

Any advice on this general topic would be appreciated.

Thank you!

Home & Garden

Comments

  • BOGOF on 06/10/2020 - 16:35
    +2

    Due to a moratorium, landlords will not be able to increase the rent from 29 March 2020 until 28 March 2021. A landlord can increase the rent after the moratorium ends, but only by a reasonable amount and in accordance with the terms of the lease agreement and the Residential Tenancies Act 1997.

    • Drakesy on 06/10/2020 - 16:51
      -1

      Can still kick not renew the lease in January and re-let out for more.

      • RDY4ME on 06/10/2020 - 16:58

        I am a landlord and in this situation now (tenant's current lease ends in January). I cannot issue an NTV to remove them until March 28, 2021. IE: Even though the lease ends in January they don't have to leave if they don't want to.

    • elgrande on 06/10/2020 - 21:37

      Is that all states?

  • ThithLord on 06/10/2020 - 16:36

    Preemptively offer to sign a 12mth lease at the current rate, before yours is up for renewal.

  • capslock on 06/10/2020 - 16:36
    +1

    Sounds like you got one of those low introductory rates to entice new renters during covid. I think you will just have to hope that vacancy rates remain high until January so that the landlord will want to keep you at the current rate. If they can easily get someone else for $550+ a week then why wouldn't they.

  • 87percent on 06/10/2020 - 16:38

    Side note, tenants have asked for a rent decrease (they’re already paying under market price because they’ve been long term good tenants), how much discount should I give them? $10-$20? $50? I’ve asked them how much, but they’ve said “up to me”

    I know the wife was a retail store manager, so they’re down to one income

    • JimB on 06/10/2020 - 17:41

      As they are already paying under market rate, perhaps give them a $20 discount for 6 months with an understanding that this be reviewed in 6 months.

      Should their employment still be affected in 6 months, you may consider extending the discount but if the wife is back at work, then the $20 discount cease.

      Seems fair to everyone given they are currently paying under market rates.

    • brendanm on 06/10/2020 - 18:51

      How much does it cost you to provide the place for a week? How much do you currently rent it for? Are you under financial hardship?

  • 28kb on 06/10/2020 - 16:40
    +1

    I think they will accomodate you given the current market!

  • dts88 on 06/10/2020 - 16:44
    +2

    I dont think any landlord will take any risks to lose tenant during this pandemic.

    A vacant property is costs way more than what they could get from rent increase.

    Imagine if you leave the property, and it vacant for 2 months (10 weeks), it actually bring 5,000 loss to the landlord; Not to mention any re-advertise fee, agent fee…etc.

    • Drakesy on 06/10/2020 - 16:53

      I'm not sure how it is in Melbourne but in WA we're at record low vacancy rates with a fair few people rocking up to each rental. I know over here tenants are happy to battle it out to get rentals, much to the landlords benefit.

      My girlfriend just moved out and the landlord increased the rent by 20% and re advertised.

      • Hardlyworkin on 06/10/2020 - 18:19
        +2

        Melbourne is totally different. It's a world apart from what it was a year before. Tenants have all the power for an inner city apartment and due to the drop in migration/students that will continue for some time.

  • DannyC on 06/10/2020 - 16:53

    Any advice on this general topic would be appreciated.

    Looking at how COVID is effecting the rental market, I would say fairly confidently that your Landlord would want to keep you as a tenant. It saves them time in finding and screening potential tenants during this wild time, I do see a number of vacancies in the Melbourne City area due to COVID.

    Vic Government, Rental rules & support COVID

    If your happy and want to stay at your current spot, I would contact the Landlord or Agent that is taking care of the place to renew (6 or 12 months?) since you only have less than 3 months before your lease ends. Just remember that there is always room for negotiation, perhaps even a small discount or most likely keeping the same rates as that link above has a moratorium on rental rules applied.

    As someone who has a rental property, I have actually given a rental discount for a single mom n her daughters to help during COVID. With the rule change in Victoria after the moratorium rules end I will adjust to the average rental for the area… as I do have my own family and the darn mortgage to pay off!

  • Willco88 on 06/10/2020 - 17:03
    -2

    What a waste of money

  • [Deactivated] on 06/10/2020 - 17:05
    -2

    Tie him up and beat him like a rented mule until you get the rate you want..

    …or exercise your option to move out into somewhere with a rental agreement that is mutually amenable.

  • Ocker on 06/10/2020 - 17:27
    +2

    With vacancy rates in the Docklands area running at over 15%, that's over 800 vacant apartments, I would have thought your landlord would jump at the chance to lock you in for a further 12 months - even at a lower rental.

  • SelfMade on 06/10/2020 - 17:31
    -1

    LoL…what a great tenant you would be…

  • JimB on 06/10/2020 - 17:34

    Those advertising for $550-650 a week may be waiting a loooooooong time for a tenant.

    In the current environment a landlord of a Dockland apartment will be silly to refuse to resign a long term lease at the current rates.

    I'd speak to the Agent. Ask the Agent they have anything similar or even in the same building for a cheaper price.

    The landlord should bend over backwards or reduce the rent to keep you there.

  • Nalar on 06/10/2020 - 17:54

    Plenty of places in that part of melb offereing 1/2 rant for first 3 months just to get people in the door. 100% talk to your landlord and offer 12 month lease at current rate.

  • Hardlyworkin on 06/10/2020 - 18:24

    Don't be concerned on the advertised price, some people are simply dreaming in inner Melbourne if they think they will get what they use to. Take more noteof how many have dropped in price. I moved out if my old building and now over a quarter of them are empty there. Like others have said above, the market right now allows you to offer less!

  • hoey888 on 06/10/2020 - 18:51

    My agent advised on shorter lease tenancy agreements because:

    a) due to the lease moratorium, as a landlords we can't kick tenants out
    b) as above landlords are unable to increase rents
    c) if tenants they don't want an rent increase at the end, they will look elsewhere automatically
    d) as landlords, we are however not obligated to 'renew' existing leases at existing prices. Should landlord be cash strapped, they may consider maintaining prices to keep tenant

    Allow for both scenarios and hope for the best I say.

  • jimbobaus on 06/10/2020 - 19:24

    In a normal situation (non covid) when you gets. Rent increase notification there is a box at the bottom you can tick to send off to get a rental review. the agent can’t increase the rent until the review is completed and they take time to occur
    The review is independent and binding on the agent. (Note they can also determine your rent is too high and force it to be lowered but that rarely happens)

  • Eaglette on 07/10/2020 - 09:05

    I got evicted 26/6/20 during covid for rent arrears of $1500 which I paid back in full.. it was a court order. I'm in WA it was foundation housing..now I'm struggling to find a rental..any advice pls

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