Sisters in Law: Qld woman shocked by $6760 rent rise

The Queenslander has been renting the same place for two years but was shocked to discover being a quality tenant meant nothing.

Welcome to Sisters In Law, news.com.au’s weekly column solving all of your legal problems. This week, our resident lawyers and real-life sisters Alison and Jillian Barrett from Maurice Blackburn advise about what is legal when it comes to rent rises.

Question:

I’ve been in my rental home for six years – I have always paid my rent on time and have treated the house with respect and care.

Recently, my lease was due for renewal and I expected it to go up. I was paying $670 a week for a two-bed in a decent area and I expected it to go up to $700, maybe $720.

There is a lot of competition for rentals in my area at the moment but I also figured my loyalty would count for something. I was so, so wrong!

My agency emailed to say it would be increasing to $800 a week – an increase of $130 a week – that’s $6760 a year. I’m appalled and so angry.

When I called, the agent basically said that if I didn’t want to stay they’d easily find someone else. What is my position here, surely they can’t increase my rent by so much? – Morgan, Queensland

Renters are copping huge rises. Picture: NCA NewsWire / Andrew Henshaw

Answer:

When a lease ends and a new one is offered it is common to see an increase in rent, even more so in the current economic climate.

Given the lease (or fixed term agreement) has come to an end, a rent increase is allowed as long as it has been at least six months since the last increase and the increase is not excessive.

Other states have different laws permitting less regular rent increases. In most states, rent cannot be increased more than once every 12 months.

In Queensland a landlord isn’t required to give you any notice of a rent increase when your fixed term lease comes to an end.

Also, there are no laws in Queensland that specifically outline an amount or percentage rent increase that is excessive.

It’s not just happening in Queensland. This house at 77 Baptist St, Redfern, NSW, was listed for $1050 per week in May 2022, the rent has since increased to $1200 per week. Picture: NSW real estate.

The Australian Capital Territory is the only state or territory that has prescribed what is reasonable, saying landlords can only increase rent by 10 per cent more than the increase in the CPI for Canberra.

If you don’t come to an agreement and the fixed lease term expires, your lease will revert to a periodic lease (with the same terms and conditions as the fixed term), at the lower rent.

The agent can then increase the rent. However, the increased rent won’t commence until two months after you have received notice of the increase.

You do have the right to dispute an excessive rent increase to the Queensland Civil and Administrative Tribunal (QCAT) after the new lease is signed. You have 30 days from signing the lease to apply to QCAT.

You have 30 days from signing the lease in Qld to dispute the rent rise. Picture: Getty Images

QCAT will decide whether the rent increase is fair and equitable, and if it is not, what is reasonable.

When making this decision, QCAT must take the following into consideration:

1. Whether the rent is comparable with the market rent for other similar properties in the area;

2. The difference between the current rent and what is proposed;

3. The length of time since the last rent increase;

4. The length of time of the tenancy;

5. The state of repair of the property;

6. Whether the rent increase related to keeping a pet at the premises or any repairs or maintenance carried out.

In making its decision, QCAT may also consider the cost of the upkeep or any services paid by the owner, and the value of the property and any contents provided by the owner for your use.

A dispute is best resolved with the real estate agent or landlord. Picture: Newscorp- Daily Telegraph / Gaye Gerard

Like any sort of dispute, this is one best resolved by negotiating directly with the agent or owner.

We suggest you prepare a detailed letter for the agent and the owner that addresses the factors above. You should include any evidence you have in support of your position, such as rental details for comparable properties.

QCAT is available as a last resort if you cannot come to a compromise.

This legal information is general in nature and should not be regarded as specific legal advice or relied upon. Persons requiring particular legal advice should consult a solicitor.

If you have a legal question you would like Alison and Jillian to answer, please email [e-mail] more from Alison and Jillian on their Facebook page