Mark (not his real name) was shocked to find out the rent on his studio apartment is being upped to $900 per week.
It’s a hike of 20 per cent, with Mark currently paying $750 weekly for the property he and his partner have called home for two years.
Mark said the situation has left him feeling anxious and frustrated.
“Based on previous experience with rent increases, we never expected that it would suddenly jump up to $900,” he said.
“You could very easily argue that we were already paying too much.”
Mark received an email from his agent notifying him of a 20 per cent rent increase for his studio. Source: Supplied
Mark said he can’t justify paying the higher price, especially while he and his partner are saving for a deposit to buy a house in Sydney.
It’s far from ideal – Mark and his partner have always had problems with noise, lack of ventilation and privacy.
Not having a properly partitioned bedroom means Mark is often unable to work from home at night, even though his job occasionally requires it.
Mark finds it difficult to work from home at night - the light disturbs his sleeping partner because the studio lacks a proper bedroom. Source: Supplied
But the thought of moving house is concerning for Mark, who is experiencing health issues and juggling a high-pressure role at work.
“It's extremely time-consuming and not at all easy to pack up one's life and relocate due to a dramatic, unexpected, and unprecedented change in one's housing costs. There is a human cost.”
How have rental prices changed in Australia?
Rental prices have been trending upwards in Australia for the past year.
Nationally, weekly rents have increased by 12.3 per cent over the past 12 months, shows.
The average weekly rent for a property in Australia is $565.
Most capital cities have seen double-digit rent increases over the past 12 months.
Source: SBS
He said the number of people calling about rent increases has tripled over the past year.
“We’re hearing from people who have been given 30 per cent, 40 per cent increases very regularly. We've seen ones more than doubling.”
Bruce Bradbury is an associate professor at UNSW’s Social Policy Research Centre.
He said although there have been substantial increases in advertised rents over the past year, average rents - the prices people are actually paying - have increased more slowly.
“That's largely because that takes some time for those advertised rates increases to flow through,” Associate Professor Bradbury said.
“These dramatic increases are quite new.”
What can you do about a rent increase?
If you disagree with a rent increase, you can try to negotiate with the landlord or agent. You can ask to reduce the amount of the increase or withdraw it altogether.
If your landlord refuses to reconsider, you can lodge a dispute with your state or territory’s tribunal.
You’ll need to provide evidence that the rent increase is excessive. This can include rents for similar properties in your area, the state of repair and facilities you have access to and the landlord’s expenses.
Tribunals can make orders to stop rent increases if they agree the price is excessive.
Mark is planning to write a letter to his landlord asking them to reconsider the 20 per cent raise, but expects the answer will be no.
Mark's bathroom door is not hung correctly, so he is unable to close the door fully. Source: Supplied
He’s hoping the NSW Civil and Administrative Tribunal will agree that the increase on his studio apartment is unreasonable.
“There are examples of one-beds [apartments] with views within the building that are cheaper than what they're asking us to pay.”
If you want to avoid going to tribunal, you can lodge a complaint with your state or territory consumer affairs department, who can also help resolve disputes.
Is there a cap on rent increases?
The Queensland government this week limited rental hikes to once a year rather than once every six months, bringing it in line with Victoria, NSW, the ACT, South Australia and Tasmania.
The state government did not set a limit on the amount rent can be increased by.
The ACT is the only jurisdiction in Australia that’s brought in caps on the size of rent hikes.
Landlords there can raise the rent by no more than 10 per cent above inflation (measured by the Consumer Price Index) without justification.
Associate Professor Bradbury said economists are usually sceptical of rules preventing landlords from raising rents.
Associate Professor Bruce Bradbury said housing prices have generally kept pace with inflation over the last decade. Source: Supplied / Sean Thomas
However, he said a cap to stop “extreme examples” of rent hikes could work.
“In the long run, landlords - if they think there's more demand for their dwelling - they can steadily keep on increasing it, but they can't do big jumps in the short run.”
How many people are pushing back against rent increases?
Data from NSW Fair Trading shows 87 people complained about rent increases last June, compared to 151 people in February this year.
“NSW Fair Trading received 988 matters concerning rents and charges between June 2022 and February 2023,” a spokesperson for the department said.
Source: SBS
Not everyone is paying more
Emily (not her real name) was told last year to expect a rent increase in April 2023. She was overjoyed to find out her landlord had changed their mind and decided not to put up the rent.
“I almost cried…because it is a really big struggle,” she said.
Emily is a single mum who has been on maternity leave for the past two years. Her tight budget leaves her with only $20 free per month after paying for essentials.
Emily was surprised to find out her landlord had backtracked on raising her rent. Source: Supplied
“You just hear terrible things…but there's still good landlords out there. There's still good people out there that care.”
Additional reporting by Edwina Storie.
