Extortionate Rent Increase - Please Help

AussieDolphin on 08/04/2022 - 18:08
Last edited 08/04/2022 - 22:00 by 1 other user

Hello!

I’ve got a rental lease until September this year. I received an email today advising that my rent is increasing by $131 per week starting in 4 weeks time.

The options offered are to agree with the rental increase or vacate by the 8th of next month.

I’ve never heard of such a huge rental increase. I cannot afford to pay this or move. There’s other circumstances beyond this rent increase that affect vacating.

I’ve never found myself in this situation before. I would be grateful for any advice or if I can be directed to someone that can help. I’m in the Northern Territory if that helps.

Update - I’m sorry I didn’t think to mention that my lease is under the NRAS scheme. I just had a quick look and it should be 20% below market value as long as I meet the criteria which I do.

Home & Garden

Comments

  • freefall101 on 08/04/2022 - 18:21
    +7

    https://nt.gov.au/property/renters/find-out-about-rental-cos… - step one, read that. Step two, read your contract and see what it says about rent increases. If you signed a contract allowing for that kind of rent increase, you should then move onto local legal services to discuss it.

    Push back if it's not in your contract but still be prepared to find somewhere new before your lease is up in September. It's going to be a rough year for rents, especially if interest rates go up, landlords will scramble to get it back out of their tenants.

    • AussieDolphin on 08/04/2022 - 21:52

      This is very helpful. Thank you

      • spychiatrist on 09/04/2022 - 01:17

        I was following NRAS before. The only reasonable excuse is that the landlord's NRAS term ended. Hence, they can charge market rates now.

      • gustus on 11/04/2022 - 14:37
        +1

        There are some questions regarding rent increase under NRAS scheme so this may help
        https://www.professionals.com.au/2021/08/02/what-happens-at-…

        Best of luck OP. I hope good news will come to your side

        • AussieDolphin on 12/04/2022 - 12:58

          Thank you for your kind message. I hope things improve as well.

  • Iwantthebestprice on 08/04/2022 - 18:26
    +14

    I came here expecting to see like maybe a $30 or $40 a week increase, but $130 is downright crazy!

    • st1ng on 08/04/2022 - 19:28
      +2

      My rent (North West Sydney) went up $100 per week starting next month. Was kinda expecting it given borders are now open and the foreign workers are coming back.

  • ddhar on 08/04/2022 - 18:31
    +4

    Wow, it seems like the landlord just wants you out. What is the average rent around your area and where does this increase put your place relative to the others?

    • MS Paint on 08/04/2022 - 18:35
      +1

      This for sure. OP could have been way below market for a few years and the landlord is now trying to claw back his losses or just increasing to current values.

    • AussieDolphin on 08/04/2022 - 21:52

      My rental is through an agent. I haven’t had any problems, no late payments, passed all inspections etc. I will check what the average prices are. I’ve never heard of a huge jump such as this.

  • AustriaBargain on 08/04/2022 - 18:37
    +4

    I would never sign a lease that says the rent can be increased mid-lease. That is absolutely bonkers. Why would anyone agree to that.

    • Donaldhump on 08/04/2022 - 18:41

      100%

    • andresampras on 08/04/2022 - 19:00
      -1

      to be fair, the lease may just not specify that it can't be increased mid-lease, which is easier to miss.

    • orangetrain on 08/04/2022 - 20:09
      +4

      You sound rich. A lot of leases are offered on a take-it-or-leave-it approach. Especially when landlords require a deposit to secure the place before a potential tenant can view the lease. It's very one-sided, especially if you don't have a choice to not sign the lease.

      • AustriaBargain on 08/04/2022 - 20:15
        +1

        I live in Adelaide. Rents here haven't gotten crazy yet, though property values in some suburbs are getting up there. People paying a million dollars just for land.

      • salmon123 on 08/04/2022 - 22:18
        +3

        Especially when landlords require a deposit to secure the place before a potential tenant can view the lease

        Which state is this? Your profile says Sydney … in NSW all residential tenancy agreements are the same. They're set out by the government and are available on the NSW fair trading website.

        There's lots of protections in place for tenants, unfortunately rent increases and no-grounds evictions aren't protected tenant rights.

        • orangetrain on 08/04/2022 - 23:06
          +3

          There's a huge amount of protections for landlord rights such as the biggest one that allows them to kick out tenants despite the tenants facing genuine costs of moving, sacrificing PTO and other misc costs, ie loss of possessions during move. But if a tenant does it? They are responsible for re-letting costs, having to continue to pay rest of rent, and/or break fees. All allowed by law.

          I would say there are few protections for tenants in comparison. It's disgusting.

          • salmon123 on 08/04/2022 - 23:20
            +1

            @orangetrain:

            the biggest one that allows them to kick out tenants

            Yeah - I think I said that. Is it fair? Definitely not.

            But if a tenant does it?

            Probably not comparing apples there.

          • DSXC on 09/04/2022 - 10:34
            +5

            @orangetrain: We had our previous landlord want to do renovations and asked us to vacate before the end of the lease term. We were happy to move and found a better place and started the process of packing and moving. When we had finalised everything with the new place the real estate agent rang to say that the landlord would like us to pay the remainder of the lease term. Don't know why the agent even rang us as he terminated the lease when he asked us to vacate.

            • Quantumcat on 09/04/2022 - 20:25
              +2

              @DSXC: What happened in the end? Just laughed and said "no"?

              • DSXC on 13/04/2022 - 11:56
                +1

                @Quantumcat: Yeah exactly that. Had nothing but headaches with the owner not fixing things and promising other things and never fulfilling. We were in there 4 months when they put it on the market to sell, then after a year wanted us to sign another years lease before they took it off the market (of course it never did). Was a pretty crappy owner that wanted to do all his own repairs and didn't actually repair anything. At least the new place is great and we've been there for 6 years now and even had a change of owner during the time there with no issues.

  • djones145 on 08/04/2022 - 18:39
    +8

    as scomo says go buy a home!

    • AussieDolphin on 08/04/2022 - 21:53
      +10

      Well I wish it was as easy as that. Getting divorced and starting over came at a huge expense.

  • andresampras on 08/04/2022 - 18:40
    +4

    this doesn't help you OP, but you're not alone unfortunately.

    a colleague has just this week finalised purchase of his new apartment - he was always a renter prior, until a month ago when his agent said his rent was to go from $600 to $750 per week. this is in Sydney however.

    Check your lease agreement to see if there's anything in there re. rent increases, and start looking for alternative accommodation as a priority.

    In the meantime, talk to your agent and explain your circs, and maybe also see if you are eligible for rent assistance or similar.

  • dogboy on 08/04/2022 - 18:46
    +1

    Damn, and I felt like a pr!ck for increasing my rent $5/week.

    • AustriaBargain on 08/04/2022 - 18:58
      +1

      I feel like a prick just owning an investment property. I mean I probably would if I owned a property just to rent out, in theory.

      • bmerigan on 08/04/2022 - 21:32

        Truth

      • tonka on 09/04/2022 - 22:17
        +2

        I don't understand that train of thought. No investment properties means no rental properties.So everybody needs to have a job and make a long term commitment to a mortgage.
        And you can argue the government should provide everyone a house. But that's gonna be at the expense of healthcare, education and standard of living.

        • AustriaBargain on 09/04/2022 - 23:33
          +1

          The government could do lots of things. It could impose limits on rents, which would lower the value of property and make investors favour other things like gold or stocks and bonds.

          • tonka on 10/04/2022 - 00:09
            +1

            @AustriaBargain: Again, no investment properties mean no rental properties. Making investors favour other things means a rental shortage and everyone needs to ante up and buy their own home.
            I own an investment property, but I sure would love to see a world where everyone buys their own house instead. Then I wouldn't have to feel grumpy about all my housing commission neighbors with a nicer houses than me, while I work a 60 hour week and they have never worked.
            My tenants have had 20 years now to get it done and mortgage payments have been the same cost as rent for years. Guess they may have to get jobs though and give up the rental assistance that my taxes pay for.

            • AustriaBargain on 10/04/2022 - 00:18
              -4

              @tonka: Unlike you, every dollar of my income comes from work, the sweat of my own brow, not from rent collecting behaviour.

              • tonka on 10/04/2022 - 00:46
                +1

                @AustriaBargain: Have you worked hard enough to buy your own house yet?? If not then push off with your excuses about property owners being bad. Get another job or two (like I did) so you can start to save and make some investments so you can have some residual income to support yourself in retirement or when you can no longer work.
                And if you are renting, give your notice and move out now if you think it's so nasty, hypocrites suck.

                • AustriaBargain on 10/04/2022 - 09:24

                  @tonka: Buying and renting out a house isn't the only investment choice anyone has to make. You can buy shares for example, shares in a business. This helps businesses become more valuable instead of making houses more valuable, which is much better for the economy and for your own conscience.

                  • tonka on 10/04/2022 - 10:26
                    +1

                    @AustriaBargain: Answer the question. Do you rent. Are you dependant on someone else to put a roof over your head. But you want to complain about contributing to the cost. A big chunk of rent goes to rates , strata, insurance, maint, etc. Then there's he cost of money, the effort involved, the risk and commitment. So again if you rent, move out, stop being a hypocrite. Sure all landlords should kick the tenants out now, and sell the property. Should be great for the economy. I've not made nay rental income in 20 years from mine. You have no idea at all.l

                    • AustriaBargain on 10/04/2022 - 11:02

                      @tonka: I own my home, but it's not an investment property. It's my home. It's not something I rent out, it's not something I plan to sell and wish upon a star the value triples in ten years. It's where I live.

                      • tonka on 10/04/2022 - 11:43

                        @AustriaBargain: Great.
                        I originally bought a very modest unit, which I moved out of and rented out because I couldn't afford to live there. When I could afford a house (very modest) I didn't sell my unit as I didn't need to and also didn't want to kick the tenants out. I ended up working long hours multiple jobs to keep both mortgages up as interest rates were high. I've never made any income from the rent, I've not had any capital growth in 10 years. I would have made a lot more money on the stock market. And my tenants that have never worked a day would be homeless.
                        There's lots of different situations, many people buy and rent hoping they can afford to live there one day. Many rent because they prefer to holiday in Bali 3 times a year or don't want to work, or prefer to wait for their parents money. Either way land prices are driven by supply and demand, and demand is driven by the need for housing, not the type of purchaser. I would suggest the bigger problem is the government balancing their budget and appeasing their big business donors with high immigration. That simultaneously drives up housing demand and suppresses wage growth. Then there is the the local and state governments skimming a considerable amount off sale prices.

                        • AustriaBargain on 10/04/2022 - 11:59
                          +1

                          @tonka: Sounds like you should stop buying things you cannot afford.

                          • tonka on 10/04/2022 - 12:07
                            +1

                            @AustriaBargain: Sounds like you should just stop whinging if your best argument is just trying to troll someone. At the moment you are advocating that the 30% of Australians who rent become homeless.

                            • AustriaBargain on 10/04/2022 - 13:07
                              +1

                              @tonka: I'm advocating decoupling housing as an investment instrument. Every kid in Australia "knows" that buying an "investment property" is the best path to wealth because houses/rents always rocket up in value, and that's not a good thing for renters. There are plenty of other things to invest in, if rents were more controlled that would limit growth on property values. It won't stop people from renting out properties, but it will stop people who want to get rich quick from buying houses just because they think it's an endless bubble to get back a lot more than they put in. It's laughable to suggest that unrestrained property bubbles is a "good" thing for renters, how out of touch with reality can you be. Have you ever actually talked to a renter before, have they actually told you they enjoy the current state of things? Runaway property values is driving people out of cities like Sydney and Melbourne and there's no good reason rents are so high except that investors see rising property values as a path to riches. And they see things like rent control and investment property disincentives as barriers to getting rich. Renters paying more for the same property is not a "good" thing for anyone except the landlord, and overall it just makes it even harder for the average person to own their own home.

            • dogboy on 12/04/2022 - 13:18

              @tonka: In Sweden you are not allowed to own investment properties and all rentals are managed through the government instead of real estate agencies.

  • garetz on 08/04/2022 - 18:50
    +2

    Pretty sure a lease is like a contract, that cannot be changed without the express agreement of both parties, usually increases happen after the lease expires and then they ask you to pay more for the next lease of 12 months.

    If you have a lease till September, ask them to send you an eviction notice.

    https://www.tenants.org.au/factsheet-10-landlord-ends-agreem…

    is a good read, dunno if it applies to NT though

    • orangetrain on 08/04/2022 - 20:10

      From first comment:

      Rent can only be increased during a tenancy if the right to do so has been written into the tenancy agreement.

      https://nt.gov.au/property/renters/find-out-about-rental-cos…

      • garetz on 08/04/2022 - 20:17
        +2

        yes but its usually supposed to be a reasonable increase, and its not always the case that it is written into the agreement.

        Otherwise whats the point of having a lease agreement at all if they can just make the lease cost whatever they want whenever they want, and kick your out at a whim at the drop of a hat.

        • orangetrain on 08/04/2022 - 20:28

          These lease agreements and such laws are because it was written by the rich landlord class who prey on the weak and poor.

          • garetz on 08/04/2022 - 20:30
            +2

            @orangetrain: We have both state and federal laws and regulations to prevent that kind of predatory behavior.

            • orangetrain on 08/04/2022 - 21:00

              @garetz: Prevent? The state government allows it…? Because the rich class writes these laws?

  • rektrading on 08/04/2022 - 20:17

    It looks like the landlord is pricing in a +2.00% cash rate hike.

  • Traveller107 on 08/04/2022 - 20:42
    +1

    I know in Brisbane a lot of people are getting huge rent increases because of the tight housing situation. Pretty common to see in SEQ. A bit like Perth during the mining boom when everyone was moving there and housing became tight.
    I'm seeing a lot of large rent hikes and specially for those who managed to get cheap rentals during covid and now facing $200-$300pw increase. A small 2 bedroom house near us used to rent at $550pw and was relisted and rented at $850pw last month!

  • Peter Enis on 08/04/2022 - 21:30
    +4

    Would help if you told us the percentage increase. For all we know you could be paying $5k/week at the moment.
    And how it compares to similar properties.

    • AussieDolphin on 08/04/2022 - 23:23
      +1

      I’m currently paying $660 per fortnight. This will increase to $922 forcing me into a very difficult situation.

      • Lunarboogie on 09/04/2022 - 11:08
        +1

        Say what? This is a huge proportional increase. This can’t be right. WTF is happening in Australia? I say it’s time for an election!

        • AussieDolphin on 09/04/2022 - 14:29

          I’ve never heard of such a huge increase in one hit. Also, my contract says rent increases can occur but not by how much. I did some research and apparently a tenancy contract is supposed to indicate the percentage of the increase. Also, last year I got a rent reduction of $15 a week and I was so grateful for that. Now I’ve got this dilemma.

  • miwahni on 09/04/2022 - 00:19
    +1

    This is a huge increase, and I'm surprised it's come mid-lease - but with the NRAS scheme for subsidised rent coming to an end, it was going to happen at some point. Just sucks, all the same, and I feel for you OP.

    • miwahni on 09/04/2022 - 00:20

      I should clarify - NRAS allowed for lower than market rents, not subsidised (poor choice of words) but it was subsidised by the government. And the current govt canned the scheme.

      • AussieDolphin on 09/04/2022 - 02:07

        I didn’t realise the scheme had been thrown in the bin. It must have happened this year because there was no indication of this when I renewed my lease 6 months ago. If this is true surely the agent should have told me?

        • miwahni on 09/04/2022 - 23:05
          +3

          Apparently the agent only needs to give you "at least ninety days" notice of NRAS eligibility ending, via the Notice of End of Allocation form. Did you get this? https://www.dss.gov.au/sites/default/files/documents/04_2020…

          The scheme was axed by the current Coalition govt with incentives gradually withdrawn as each property reached the 10-year participation mark; by 2026 it is expected that there will be no properties remaining in the scheme.

          Again, I'm sorry you've been caught up in this. It was a brilliant idea, to help with lower rents due to the lack of public housing, just a shame it's ending now. Good luck with finding affordable accommodation.

          • AussieDolphin on 11/04/2022 - 07:52

            @miwahni: Thanks, I didn’t get that notice and I haven’t been in the property 10 years yet.

  • jrvb42 on 09/04/2022 - 08:41

    It would be helpful to know what percentage increase that is.
    If house prices go up x%, you should expect rents to increase by x%, all things being equal.
    Otherwise, house prices are too high, and we know that's not true, otherwise the governments wouldn't be giving grants and assistance to help people buy and inflate prices more.
    It's a mess. You're in the same boat as a lot of people will find themselves in.

  • WillThisNameDo on 09/04/2022 - 09:15
    +2

    Having just been through this in SEQ, I’m sorry to be the bearer of bad news but you’re in for a bad time.

    My rent was increased $180 per week when a new owner bought the property. We tried to go down the mediation route, then the arbitration route and finally we were given notice to vacate without grounds on Xmas eve. Merry Christmas, right?

    At the end of the day, the RTA just shrugged and said “it’s happening everywhere unfortunately”. We were fortunate enough to find a place and put an application in for it (sight unseen) and got it.

    I feel for you, OP. I hope you find a solution.

    • AussieDolphin on 09/04/2022 - 10:13

      Thank you. It is very stressful indeed. I can understand reasonable rent increases, but to find an extra $260 a fortnight is very difficult. I'm so stressed about the situation I have found myself in. I can't even sleep. I had a look for rentals last night and there are non suitable for my family. Also, I won't be able to meet the deadline for vacating in 4 weeks either.

  • Boogerman on 09/04/2022 - 11:07
    +2

    If you're on pandemic rates, its no surprise there is a large jump that the pandemic/lockdowns are over

    • AussieDolphin on 09/04/2022 - 19:23
      +2

      I’m not on any pandemic rates.

    • WillThisNameDo on 14/04/2022 - 08:42

      I certainly wasn’t on Covid rates. We were paying “overs” when we moved in (based on rates in the surrounding area) but accepted it to get out of the inlaws lol.

      The key with our situation is that the property was sold in one of the hottest suburbs for investment in SEQ. New owner paid $200k more than what the property was worth the previous 12 months, so up the rent went.

      I’m told they’re now charging $850 for something that we were paying $620 for.

  • Waltervp on 09/04/2022 - 11:57
    +2

    WE MUST GET TENANCY PROTECTION!

    Why are we so hung up about the Australian Dream to own a home? Because it is a necessity! You can get kicked out, rent increases,… unless it is your own home.
    Proper tenancy protection would give people two options: A fixed-period rental contract or an Indefinite rental contract, Many people choose the latter as rent cannot go up beyond CPI and they CAN NOT get kicked out. This is forever! Hence selling a home with a tenant is often at a lower price than an empty home. It means HOUSING PRICES REMAIN MORE STABLE, investors can take a gamble on buying a tenanted house cheap and sell when vacant one day, or keep the house tenanted by CARING TENANTS who will even pay for renovations and upkeep because IT IS THEIR PERMANENT RENTAL HOME. They intend to use the renovated kitchen and bathroom for 10 more years…

    The way we do it investors compete with buyers who intend to live there, and with rental markets the way they are investors are keen and house pricing goes up making it virtually impossible for an average income earner out of the market!

    Vote 1 Wally….

    • orangetrain on 09/04/2022 - 13:44
      +2

      I live in Sydney and drive by huge wire fence grass plots throughout. Then there's a lot of empty houses and businesses boarded up with a picture of a "new store coming soon" for years

      A simple punitive vacancy tax based on property price would force owners to attract tenants (ie lower rent / more supply) and house prices would fall to a reasonable level that the vacancy tax hurts less.

      Investors are still welcome with this, but they can't just hoard land. Lets say the property market is $100 trillion and all properties are rented out meaning income tax to pay. Maybe $1 trillion in tax revenue.

      Or foreigners bad..

    • rektrading on 09/04/2022 - 15:16
      +1

      Many people choose the latter as rent cannot go up beyond CPI and they CAN NOT get kicked out.

      The unofficial inflation rate is higher than the CPI.

      People who say that rent should be pegged to CPI will regret it when CPI finally catches up to inflation.

      • Waltervp on 14/04/2022 - 09:27

        I don't know enough about the fine details, but rent cannot go up like 20% pa. If CPI is high then inflation is high and rents should go up too, even if it is in larger chunks… but as long as it doesn't race up way beyond the CPI which is forcing people out all the time. I'm sure people will lose jobs and fortunes and not be able to pay their rent in many cases, but basic tenancy protection would be a huge improvement to social welfare all-round and slowly reduce homelessness instead of adding to it now - people are forced out due to rent increases and not finding affordable housing and ending up living in cars and on couches.

  • margiela on 09/04/2022 - 15:21
    +3

    Hi AussieDolphin, not sure where in the Territory you're located but try and get in touch with the Darwin Community Legal Service. They have a free tenancy legal advice where they assist renters with matters like this on a regular basis.

  • tonka on 09/04/2022 - 22:20

    Maybe it's actually a mistake? Meant to be a monthly of fortnight increase?

    • AussieDolphin on 09/04/2022 - 23:05

      I really hope so. I have asked the question by email. I need an answer because I’ve felt sick since yesterday.

  • Ghost47 on 11/04/2022 - 11:47
    +1

    I said a while back that landlords would just raise rents when rates go up and got replies from people saying it would never happen lol. It’s clear to me lots of people don’t live in the real world.

    Sucks to be in your situation OP, I have a workmate who said the exact same thing is happening to them. Now they’re extremely stressed and have to find a new place further away from work and have to go through the process of moving again and it’s impacting their mental health. I doubt they can focus on work as well as they normally can. But hey landlord wants moar money.

    My advice would be to find a new place. Don’t bow down to the greedy, selfish, stupid landlord who is probably negative gearing like a moron (because losing $1000 to save paying $325 tax is so much smarter than making $1000 and paying $325 tax and pocketing $675 lol because tAx iS bAd!1!!). Terminate the lease and leave that mould infested hovel. If more [smart] people do this they’ll realise they can’t just do this willy nilly.

    • AussieDolphin on 12/04/2022 - 13:01
      +1

      Thank you for your kind message. It means a lot, I checked if the rental increase was an error and its not :(. She said that the market had improved and a valuation was done by the DSS and they’ve determined that my rent must be increased by more that $500 a month. This is so stressful :(.

      • gustus on 12/04/2022 - 14:48
        +2

        This is horrible :( is it possible to look for another person to share the place and rent with until you can move out to a cheaper place?

        • AussieDolphin on 20/04/2022 - 09:38

          Not really because I have two dependents and a dog that we live dearly. Our accomodation is modest and we don’t have a spare room for another person. I saw an ad on the Gumtree but that person wanted $700 a week.

  • Gros21 on 12/04/2022 - 09:59

    Ok so the Govt schmeme has ended.

    so its more like his $660 rental is really worth $792 and its went to $922 so arround a 16% increase which is prolly more than fair.

    Whats the market rent at?

    You cant cap rent increases at CPI/inflation as they are not really tied to each other. The market will decide on a fair price.

    Agreed a landlord should not exploit the situation, but was on a govt scheme which got axxed, then a standard increase as per market. How long was OP on this reduced ammount maybee its the first change in years.

  • cerealJay on 14/04/2022 - 16:03
    +1

    Just ignore the email and do the equivalent of George Castanza showing up to work on Monday pretending he wasn't fired.

    Keep paying the same rent on the grounds you cannot afford more. Or offer to pay $10 pw more. If it goes to tribunal, your existing lease agreement until September, AND the massive increase will work in your favour.

    $131 pw rent increase is an example of how disgusting the rental situation and treatment of tenants is in this country.

    Your landlord should do the right thing and wait until September before increasing their properly into the rip-off zone.

    • AussieDolphin on 20/04/2022 - 09:36
      +2

      Thank you. Apparently a drive by valuation occurred and it was decided that I was paying too little. I managed to get a free half an hour with a lawyer tomorrow.

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