Disputed rental increase

Take them to VCAT, you have in writing the agreed amount at $30 per week increase. It's not your fault they didn't send you a new rent agreement with that amount. I would say they will refund you the difference instead of trying out VCAT. The agency has really messed this up.

 

Resolving renting disputes - Consumer Affairs Victoria
Disputes can often be settled without going to VCAT:

• The first step should be to try and resolve the issue by talking.
• If this does not work, put your request and complaint in writing or issue a formal written notice, depending on the issue.
• As a last resort you can go to VCAT

Start friendly and factual, empathise - a mistake has been made, let's fix it. Cannot afford all the amount in one go? Fine, half now, half in a month. If the matter cannot be resolved in an amicable way or via a formal complaint, VCAT is the way. In that case the applicant's reasonableness and respondent's lack of a reply will be in favour of the former.

I have made nearly 50 years of consumer complaints, winning most. An insurer denied liability for a travel claim. I showed that they asked the wrong question on the form. They denied and denied, only folding when I upped the ante. They paid, I withdrew the matter, sorted. Despite them saying that their form was okay they issued a new form with a better question. If they had gone to VCAT I would have won and there would be a record, something large entities hope to avoid.

 

Yes, I think I have copied in the wrong section. The details are the same in section 44 from what I can see.

 

I haven't look at the Victorian legislation specifically, but as a general common law rule you can agree to vary a lease by mutual agreement by lowering the rent without any real formalities required beyond the usual contract law ones.

It is increasing the rent that has the very prescriptive processes and procedures under legislation in each state.

On the face of it, there probably is a pretty good argument for the $30 increase being the effective rental amount for the relevant period, overpayment notwithstanding.

 

Thanks again for all the responses. If I was to reduce my next payment so we weren't in credit, am I at risk of getting kicked out if we're either found to be in the wrong by VCAT, or if the agent just claims we're in the wrong and initiates an eviction process? Also, if I were to look for another rental, and have escalated the dispute (either through VCAT or by withholding rent), how might that impact a rental application we submit in the future? The rental market is so tight, I don't want to have any blemishes on our "perfect" record.

 

Have you requested a copy of your ledger?

 

You have a lase to pay a certain amount. This amount is in question, although it seems to me that it should be $30 more than before. To keep is simple and easy to refer to, call the old rent $500, the one you wanted $530 and the one that was paid $580.

There is still a requirement to pay the rent, and there is no basis at law to suddenly stop paying. In time it may be that a solution is to allow you to stay for no rent payment until the overpayment is exhausted, but that's in the future. For now I suggest that you advise the manager that it is your intention to pay the amount that you stated, $530/week., and that unless the manger can provide good reasons to the contrary this is what you will pay from the next due date.

Gently remind or advise that you still need $50/week by however many weeks it is (state this in numbers with dates) paid back. Ask how this can be done and don't mention VCAT - yet.

A court order against a tenant may be put on the credit report. My understanding is that anything else is not.

 

Assuming their position is correct, then they have paid the rent - overpaid. So of course there's a legal basis to "suddenly stop paying".

I'm not sure what future point in time you would be referring to otherwise?

 

The lease is a contract and that must be followed. The mistake can be remedied in several ways, including but not limited to cessation of payments until the overpayment is resolved, or the property manager agreeing to a lump sum payment to the tenant. The amount of the overpayment and the way that this is resolved need to be agreed by parties. Not paying rent will get the PM and LL offside, and that is not desirable for a reasonably amicable remedy. Further, should the matter go to VCAT, cessation of payment by the tenant without due process will look bad for the tenant.

Taking it in slow steps is better and more likely to lead to a solution without recourse to a formal complaint or VCAT. After a long time of paying too much, a bit longer is of minimal import. Start with dropping the rent to $530 in my example above. This gives the PM and LL time to understand and hopefully tacitly accept that too much was charged. Also, if they agree to this it will be a lot easier later.

VCAT hearing or mediation:
Applicant: After I advised that respondents were charging $50/week too much you agreed to dropping the rent $50/week to $530/week. Why?
Applicant: I offered you an option to pay the (cite amount) over time. Why was this not accepted?
I'd be very happy to follow these lines.

 

I get what you're trying to say overall, but I couldn't disagree more with these comments.

If you're legally in the right and the other side is both wrong and being unreasonable, then what's the point of going out of your way to be nice? None imo. That's why we have laws and legal processes after all.

 

I have filed many matters with VCAT since they were established in 1998. I win most cases, either with a ruling or the respondent agreeing to my claim. I am very conversant with how VCAT operates.

Once the rent is not paid due to an unproven case that monies are owed then a line has been crossed. The way I suggest is gentler, slowly getting results in steps. It may be that there and they are trying frantically to avoid having to tell the LL that they screwed up. On many, many occasions I have seen respondents and defendants apply one common defence - deny, deny deny. It was not us, we did not do it, there's no evidence, sorry. Only when the evidence is overwhelming do they fold. I've seen this in small operators and companies with a market cap of over $50 billion. That one was very clear with the Particulars of claim being over 3000 words. They folded at the directions hearing.

Forgot. Another strategy is to seek a mediation. This will take 2-4 hours with the PM and LL attending. They may not want to take this time, with the prospect of more time needed for a hearing where a ruling is made.

At this stage the facts and legal rights of parties are yet to be determined. This is why I said to document matters and advise the PM. The process is to determine the facts, apply the law, and reach a conclusion. Gently reducing the rent by $50/week with notice of this and why is the first step. At present, not paying the rent at all is a breach. This is a possible remedy.

My long experience is that when the other party knows the facts, strength of my case, the law and my determination to proceed to a court of law they usually agree to my claims. In the current matter there were mistakes applying an $80 increase (too high, not agreed, seems not to have used the proper form) and the OP not spotting the extra $50. These can be sorted before or at a mediation or hearing. On the information before me I would be very happy to take this to VCAT if nothing else worked. Start slowly and gently, keep them onside as much as possible, focus on the actions and not the people.

 

I mean its great for you that you have some experience, but I don't think you fully understand the law in this sort of case, so I wouldn't be suggesting any specific course of action that involves VCAT if I were you.

OP should probably get some legal or tenancy advice, and go from there. I'd be very surprised if VCAT was a good idea at all.

 

I was not the first person to mention VCAT, so further and better particulars surrounding filing with VCAT are indicated. At this stage VCAT is a dreadful idea. However, to give a better chance of a better result at VCAT for the OP, knowing what to do now is useful. In one case I waited over a year, patiently getting dusty answers or none. Patience is my friend.

 

I would take it that you’re in credit because you’ve been paying extra and stop paying until you’re even.