Is It Fair to Increase The Rent Twice within One Month?

saymyname on 22/01/2022 - 19:24
Last edited 22/01/2022 - 19:31 by 1 other user

Hello, I'm living in my current single bedroom apartment for about 1 year and 1 month.

Last December, my one year contract finished and the agent offered to extend the contract with an increase in rent of about $10 per week for another year. I was unable to accept the contract at that time as I was waiting for an outcome of a job application that I applied in another state. So I asked him for some time to which he agreed and gave me a contract for a month with a $10 increase in rent per week. I accepted the contract.

Now, the job application did not go in my favour, I asked the agent to extend the contract for another 6 months. He gave me a contract for another 6 months with another $10 increase in rent per week with just 1 week notice.

Is it fair to increase the rent twice within one month gap? I'm living in SA.

Thanks.

• 

  Jimothy Wongingtons on 22/01/2022 - 19:28

  Well a quick google search says you’re supposed to get 60 days notice in Sth AUS but it also doesn’t say what happens on extension of lease..

  • 

    saymyname on 22/01/2022 - 19:55

    Thanks mate. I saw that too. But as you said, I don't know what happens when a lease is extended.

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  capslock on 22/01/2022 - 19:50

  +7

  This is why people don't like real estate agents.

  • 

    fantombloo on 22/01/2022 - 21:13

    +1

    As true as this is, for rentals they are essentially only doing the bidding of the landlord. Maybe it's time to start scrutinising / stigmatising them as much as the REAs.

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  rektrading on 22/01/2022 - 19:54

  The monthly and 6 month are different contracts with updated terms.

  • 

    saymyname on 22/01/2022 - 19:56

    Thanks. But what about that 60 day notice?

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  holdenmg on 22/01/2022 - 19:57

  +1

  Well, $10pw extra for a year is looking pretty good now as opposed to the $20pw Nett for 6 months on offer.

  I'm thinking the agent doesn't want to be left with you moving out in July when reletting is slower and fewer are looking. A shorter lease exposes the owner to periods of property being vacant etc.

  Are you able to live with the $10pw for a year (if still on offer?) that sounds like a modest increase.

  Otherwise, maybe look for another place.

  • 

    saymyname on 22/01/2022 - 20:04

    Thanks. I'm still keen on moving interstate. So I don't want to be stuck in this apt until they find another renter. But my point is, there should be some control on these agents.

    • 

      holdenmg on 22/01/2022 - 20:13

      +3

      Sure, but the Agent did accommodate your request for a 1-month extension.

      In doing so the Agent has forgone the opportunity to rent the Property at a High Demand time of year probably for a one-year contract to someone else.

      Did you ask for a one-month extension with an option to extend for 6 months?
      No.

      Now, at best you only want six months. There seems to be a premium attached to this.

      Interstate the Rents are even Higher than SA,

    • 

      Hardlyworkin on 22/01/2022 - 23:58

      It's not the agent, it's the market. Rentals are out of control in Adelaide right now

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  pharkurnell on 22/01/2022 - 20:22

  +1

  I feel for people stuck in the rental roundabout… Some have no way out due to life circumstances

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  AndyC1 on 22/01/2022 - 21:32

  Add poll. Not fair and I think this is REA trying it on.

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  Snake 4 on 22/01/2022 - 22:10

  +2

  For all the posters blaming the REA. Unless he owns the property he is acting under the order of owner.

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  Trance N Dance on 22/01/2022 - 22:54

  +2

  In the month that's passed the landlord might have done a bit of research on how to price the property for the next tenant after your one month extension. If the new rent is in line with market pricing in the area then it's a fair increase. (It might not seem fair to you because it's more, but it could also be that the landlord has been really nice to you by letting you rent at below market rates).

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  KaTst3R on 22/01/2022 - 23:19

  We only know about your $10/wk increase but not the age of the property, current rent, suburb etc. If the addtional $10/week brings it above market rate, then maybe you could push back and negotiate. You could still try to negotiate and ask them to keep it on the last rate (after increase), the worst case scenario is that they insist on it but at least you tried.

  If im in your situation, I wouldnt extend the contract and let it run month on month. It might be a little risky but it could suit your situation given that you are constantly trying to get a job interstate. Who knows, you might get something in 1 or 2 or 3 months and you are stuck with a 6 month contract.

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  p1 ama on 22/01/2022 - 23:28

  +1

  Have helped many renters in the past.

  Truth is you have to stop seeing yourself as the victim, grow a spine and be willing to negotiate and play hard ball. If you think everything is "unfair" on you, then you're not going to get anywhere. The process of finding new tenants and all that goes with it is time consuming and expensive (not to mention that if a property is unoccupied for a few weeks, that's huge amounts of lost rent).

  You have leverage in the process - you have (presumably) been a good tenant, you're renegotiating for 6 months, not a terribly short amount of time, single bedroom apartments aren't the hottest rental market right now with no international students…etc.

  If the landlord is trying to charge you above market rates, then you need to be willing to stand up and find a new place. Either the landlord will see that you're serious and back down, or you end up going to a place with lower rent. Only upside for you. If the landlord has charged you below market rent and is just adjusting to meet what the market price is, then what are you complaining about? Be happy you managed to score a place to stay below market prices.

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  tsunamisurfer on 23/01/2022 - 11:29

  -3

  Yes the landlord can ask for rent increases.

  Either accept, counter or move out.

  I hate renters who think they should be protected from rent increases in a new contract.

  If there was a rent drop there'd be pure silence.

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  Rkel403 on 23/01/2022 - 20:28

  I’ve been a renter since I moved to Oz 10 years ago (WA, NSW, VIC). When I moved to Perth during the height of the mining boom it certainly was a landlords market, crazy things happing as standard. 50+ people at viewings, needed to offer at least 10% above asking to be in with half a chance. A friend of mine even paid 6 months rent up front in cash to secure a place to live. And the standard rent increase at the end of every contract.
  I’ve been in Melbourne for 5 years now and it’s a renters market especially since covid. Just take a walk around 3205/3207, for lease signs everywhere, some of which have been up for months. I moved house at the start of covid and managed to negotiate $50per week off the asking price of my new place. Some friends of mine negotiated 30% off their apartment rental in Port Melbourne. They are still paying the same price 1.5 years later while the other 4 apartments on the same floor are empty.
  In my 10 years as a renter, every time the contract renegotiation comes up, the $10per week increase gets put in there as standard. The REA needs to justify their existence. You just need to make your point to why it is unreasonable (if it is) I.e. number of similar apartments in area for lease for same/less money, thinking of renting something better for the $10 extra they want to charge.
  As others have stated, if you are a good tenant they won’t want to see you go for $10 per week.