Unreasonable rent increase

Hi All,

A disgruntled tenant here seeking advice on how to fight a proposed rent increase. I posted on here several months ago after battling to get our rent reduced during construction of a granny flat. Thanks to your help, a fair outcome was achieved ($100 p/w reduction during construction period). The granny flat is now complete, and normal rent has resumed ($400 p/w).

Today, I received a "reminder" letter from our PM that our rent will increase to $450 in 2 weeks time. It refers to a letter dated 16/9, which we never received, and is a date that conveniently satisfies the 60 day notice requirement. What makes it ridiculous is the fact I have a letter dated 8/9 informing us that due to completion of the granny flat construction, our rent was scheduled to increase back to the normal weekly amount.

Regardless of the fact that we weren't notified of the increase, am I right in thinking a 12.5% increase is excessive? We have had constant issues with maintenance requests throughout our tenancy, and we have actually had our amenities reduced by the construction of the granny flat (loss of car spaces, reduced privacy). It seems to me that there is absolutely nothing to justify this increase.

Our lease has expired so we're week to week. Any advice on the best course of action to take here?

Cheers,
Tom

 

Hi Tom,
I am sorry to hear about your renting issues.

in NSW you must have 60 days notice in writing for a rent increase.
Plus four days postage.
If you dont think rent is fair, collect copies of similar rent ads to prove your point.
Have you asked about the maintenance issues in writing? Do you have copies of this? or records of the conversations? Present them to Tenants Union.

I hope this helps.

 

What do comparable properties in the area rent for? Perhaps start looking to move.

Without having much detail, it sounds like they are either trying to get rid of you, or trying to recoup the loss of the $100/wk during the GF construction.

 

On the face of it, it does seem dodgy, but there is an absence of supporting facts, like comparable rents in the area.

I would suggest that you may have ongoing issues with your LL, and if I was in your shoes, I would move.

 

You need to find similar properties for rent to check the current price and weekday increase would match the market, if any

Assuming you're in nsw they need to give you 90 days notice to vacate but you only need to give 1 week from memory. So can leave asap if there's better accommodation for yourself

 

I'd move. Adding the granny flat hasn't improved your bottom line, but $50 a week is a bit of a hike.

 

There is no rule that limits the percentage or dollar amount by which the rent can go up.

A landlord can put the rent up to whatever they like. If you choose to accept it and pay it then great. If you choose to challenge it at tribunal it will need to be shown what is fair market rent for similar properties in the area. It is unlikely the PM would support the landlord in hiking the rent to an amount that would lose a tribunal challenge.

 

If your on just the week --week and depending on the bond then i would start looking for a new place to rent,because fast track a month or so and the new tenants move out the back your problems may only just be starting..

 

Caution - That rule varies per state.

In general, as long as its still reasonable market value, can increase as you say though.

I'd challenge the OP to provide links to properties he thinks are similar but cheaper.

 

True and very fair point @D.T.

 

Sounds like a case of a landlord 'managing you out'. Multiple run-ins with rent adjustments, maintenance requests etc...legitimate or not....doesn't sound like a peaceful relationship nonetheless and I think for your sleep at night factor, best thing could be just move on....

 

Thanks for your help everyone, greatly appreciated.

I have done a search of the suburb (Waratah NSW 2298) and i'm confident that $450 p/w is steep for a 3bed 2bath property, particularly given the state it is in. I have now realised why this increase has come about though....the landlord has just listed the 2bed 1bath granny flat for $380!

The timing is too perfect for this to be anything other than a stitch up from the PM. They clearly did not send a letter in mid-September informing of the increase, yet how do you prove it? They can easily mock up a fake letter with whatever date they want, it's just our word against theirs.

We would not hesitate to move except for the fact we have an apartment under construction that is nearing completion. We always thought we would be out of this place by now, but as you know there always seems to be delays with these developments. Current completion forecast for the unit is mid-December, so far too soon to find somewhere in between. It's a very frustrating situation to be in!

 

Well, if you are due to move Mid December, that changes everything. I'd do like Wylie said, and string them along. Call their bluff with a written note of your own detailing the letter that you have, and mentioning that you did not get the letter of increase. Tell them that the rent is excessive for the area & condition of the property & that if they insist on the increase you will once again take them to Tribunal. This will buy you time, and they don't need to know that you are moving, hopefully mid December.

At the end of the day, even if you DO have to take up the increase in rent, it's only for a matter of weeks, so don't sweat it.

 

Sounds like they are playing games so make ip some of your own rules and play back in order to drag it out OR just pay the extra and be done with it. I would attempt to string it out if it wasnt to much hassle or if to much hassle would wear the $200 and move on with my life.

 

Thanks @wylie & @skater , you're right, it's not worth fighting it over the $$$. It's the way they have gone about it that has really got to me. Think I just needed to vent my frustrations, this house has been nothing but problems since we moved in, compounded by the fact that it was a forced move to begin with due to aggressive neighbours at our previous place.

I've sent an email to the PM requesting that the 60 days notice apply from the date we received the "reminder" letter. If they agree to this, it should comfortably cover us through to move out date. I have also requested a copy of the initial letter, it will be interesting to see whether they can provide it.

Safe to say i'm looking forward to becoming an owner!

 

All that and you're moving out anyway? Sheeez. I'd just suck up the $200 as others have said. LL gave you $100 off per week during construction (which no doubt was longer than 4 weeks), so swings and roundabouts.
Does the PM even know you're vacating?

 

Definitely not! PMs don't read this public forum.

 

That's not the point. Do you know what landlord's are like! ? they think they are above the law!

 

@Sonamic had to fight tooth & nail for that deduction too. Not really swings and roundabouts when there was a valid reason for the discount to be given during the construction, not least the fact that part of it was to cover the cost of power used by the tradies. And as i said, it's not really about the money, it's about the landlord and the PM not keeping up their end of the lease agreement. We do what is required of us by respecting their property and keeping it tidy, a little bit of consideration in return would be nice.

And no, the PM does not know we are vacating, nor do they need to know. I'll be delighted to announce it once we have a firm date for settlement on the apartment, but that could still be a while away. Just today I received a call to postpone our first inspection that was scheduled for this Friday, the second time this has happened.