Should I contest a rise in rent?

[MissAlison]

I am currently builing my home so I rent at the moment.

I pay $1300 pcm and my landlord would like to increase the payments to $1350. The exact same properties on either side of me are going for $1250. Given this info, I think I would have an excellent chance of leaving rent as is, or even reducing it had I take the matter to VCAT. This rise also came straight after I requested the broken shower and oven needed to be fixed. Perhaps to cover costs?....sneakily

The issues is, when my lease is up in September I wish to go on a month to month until my house is competed in June 2010.

I am concerned that I will be denied month to month for being a pain in the butt. However, we are textbook perfect tenants ie. decent income, couple, no kids/pets.

I was hoping that the cost of not renewing the lease and finding a new tenant would be pricey anyway, and they would just let us stay regardless.

What do you think?

 

[Xenia]

Hi Miss

From a pm's point of view, and unfortunately they only act on the best interest of the landlord not the tenant, you would be very likely be denied month by month.

Our tenants have a choice of fixed term or vacant posession. That is becuase some insurance policies will not cover landlord claims on a periodic lease: the landlord will be paying insurance for nothing.

As for rent, little chance of reduction because you signed a lease. You can however dispute the price rise based on market evidence. VCAT may grant you the right to stay at current rent, otherwise the choice would be rent increase or vacant posession without the intervention of VCAT.

Hope that helps and all the best

 

[MissAlison]

A family member of mine who is a pm, suggested that he has been taken to VCAT several times and has had the rent significantly reduced despite a lease.

Would you be thinking that I will not get month to month anyway? I am in no position to sign for another year, but 6 month would be fantastic.

 

[BoatBoy]

If you
A) Cant afford the rent increase or just feel it's to expensive
or
B) Choose not to accept the current rental terms as they dont suit you

Shouldnt you be looking for somewhere else to live?

Dave

 

[Joe D]

As a LL I would not be renewing any lease with you if you tried such a stunt as going to VCAT given you signed a lease. The PM has obviously given you the required notice for the rental increase.

I’m guessing your current location suits and it would cost you at least $500-$1000 to move into another rental property (moving, connection / reconnection costs etc).

I suggest you accept the rental increase but request that the lease be renewed until June 2010. (It doesn’t have to be 6 mths or 12 mths)

 

[Xenia]

A family member of mine who is a pm, suggested that he has been taken to VCAT several times and has had the rent significantly reduced despite a lease.

Would you be thinking that I will not get month to month anyway? I am in no position to sign for another year, but 6 month would be fantastic.

Is that despite the landlord meeting all other obligations of the lease? I have seen it reduced many times when LL refuses repairs!

If you have this precedence then might be worth a try???

Ask for 6 months! If you don't ask you will never know

 

[MissAlison]

VCAT would be a drastic measure, I would assume that you would just get a rental review first.

It seems odd to raise the rent above that of the area though. What is the point?

The pm I know is worried that a few tenants (in the same area) have won rental reviews and is concerned they will spread the word.

The LL has been fine. We have had some serious issues with the pm though. ie unknown repairs being fixed, workmen entering property while I'm home with a key with no notice, 3 times, key being lost, rent been withdrawn twice on one occasion. It has been a nightmare, can't wait to get out of renting.

 

[The Y-man]

I am concerned that I will be denied month to month for being a pain in the butt. However, we are textbook perfect tenants ie. decent income, couple, no kids/pets.

My understanding was that month to month coul not be denied - you simply don't sign a new lease agreement. You'll still get the price hike, but you are not locked into the lease.

The other option is of course to vote with your feet - and move to the identical property next door

You should be reporting breaches of rights of access.
http://www.consumer.vic.gov.au/CA25...g~&2=10-Tenants~&3=80-Rights+and+Obligations~

We have always raised rent based on the fact most people can't be bothered "upping and moving" for the sake of $x per month.

Cheers,

The Y-man

 

[willy008]

A family member of mine who is a pm, suggested that he has been taken to VCAT several times and has had the rent significantly reduced despite a lease.

Would you be thinking that I will not get month to month anyway? I am in no position to sign for another year, but 6 month would be fantastic.

if your family member was renting one of my propertys I think they would be looking for a new place to live

If you
A) Cant afford the rent increase or just feel it's to expensive
or
B) Choose not to accept the current rental terms as they dont suit you

Shouldnt you be looking for somewhere else to live?

Dave

agreed

 

[MissAlison]

Oh he owns and manages. he spends his days at VCAT with all sorts of bits and pieces, mostly chasing up unpaid rent (his properties are aimed at that demographic).

I do believe that the rise was just a tenant can't be bothered moving rise. I would move, but its just the issue of only needing a place for 9 months post lease.

I'm not sure why it matters if I can afford it or not?

 

[Peter_Tersteeg]

In the current market if a tenant asked me for rental decrease based on the neighbors rent, I'd suggest that the neighbor is well under real market value.

I've had good tenants give me notice to move out previously when I asked for a reasonable rental increase. A week before they were due to leave they asked me if they could stay because they couldn't find anywhere with a better rent.

In the current Melbourne market, a 3.8% increase in rent after a year is quite reasonable for most properties.

 

[josko]

Hi Miss

From a pm's point of view, and unfortunately they only act on the best interest of the landlord not the tenant, you would be very likely be denied month by month.

Our tenants have a choice of fixed term or vacant posession. That is becuase some insurance policies will not cover landlord claims on a periodic lease: the landlord will be paying insurance for nothing.

As for rent, little chance of reduction because you signed a lease. You can however dispute the price rise based on market evidence. VCAT may grant you the right to stay at current rent, otherwise the choice would be rent increase or vacant posession without the intervention of VCAT.

Hope that helps and all the best

Xenia is right.

Infact, I don't know of any insurance cover that would cover/allow the tenant not to be in a lease.

Regards Jo

 

[wylie]

If I were you, I would be asking to sign up until the time that you want to leave. If they let you do that, then I would just pay the extra, save the hassle of taking them to the tribunal, and think about how much it would cost to move twice.

Sometimes it is just better to take the path of least resistance. If you get their back up, you may find you have to move twice, and that will cost more than the extra rent for nine months (I guess).

 

[BoatBoy]

I'm not sure why it matters if I can afford it or not?

Righto then, I'm off to get me a nice new 911.

Apparently it doesn't matter if I can afford it or not

Dave

 

[the_captain]

So you chose to lease a place, then found out that similar places are renting for less than you agreed to, and you have a landlord that is meeting all obligations under the terms and conditions of the lease........and then you want to take said landlord, to VCAT, yet you say your a good tenant.

You also accuse the landlord, who fixed issues with the property promptly of being sneaky, yet you are deciding to take them to VCAT totally behind their back, put them through undue stress and strain for a measly $25 per week. Which is a rise of around 4%, which in the current Melbourne market is very reasonable.

So, after plotting and scheming against your landlord, calling them a sneak and such, you then wonder if it is important "if you can afford it or not". Come on Miss, give us a break! Why not show some intestinal fortitude and ask the landlord direct.....after all, you never know. As a landlord, if someone was upfront with me, I'd be much more considerate. If you took me to VCAT, well, you'd be on my ***** list, so to speak

If you cannot afford, or do not want to pay this amount, why not find a different property before signing the lease? I must admit, I am with Dave on this one.

Dave, on the way down the shops for the 911, could you pick me up a 40 foot Bavaria....I know your in the game, you should be able to do me a deal, thanks mate, I'll pay you back next dole cheque.

 

[skater]

I am currently builing my home so I rent at the moment.

I pay $1300 pcm and my landlord would like to increase the payments to $1350. The exact same properties on either side of me are going for $1250. Given this info, I think I would have an excellent chance of leaving rent as is, or even reducing it had I take the matter to VCAT. This rise also came straight after I requested the broken shower and oven needed to be fixed. Perhaps to cover costs?....sneakily

The issues is, when my lease is up in September I wish to go on a month to month until my house is competed in June 2010.

I am concerned that I will be denied month to month for being a pain in the butt. However, we are textbook perfect tenants ie. decent income, couple, no kids/pets.

I was hoping that the cost of not renewing the lease and finding a new tenant would be pricey anyway, and they would just let us stay regardless.

What do you think?

Get real! That is a raise of a little over $10 per week. If you don't like the increase, move! It really is that simple.

Maybe your neighbours properties are rented at under market value. Maybe the place you are renting has more features than the neighbours. You really can not judge the rental of a property based on what the neighbours are paying.

One of my properties rents for $285 per week. The house next door rents at $220 per week. The next one at $210 per week. I know this because it is my EX PPOR. The one next door is privately rented & the owner has no idea what the market is like. The next house is a long term tenant with a lazy PM who hasn't put the rent up for several years. Mine has a new kitchen, ducted air-con, built-in wardrobes. None of the others do. Mine is the right price for the house, yet from the outside they all look similar.

If you were my tenant and you were causing problems, then I would just get rid of you.

BTW, a textbook perfect tenant has no bearing on your income or whether you have kids/pets. A perfect tenant is someone who PAYS their rent on time, every time (plenty on good incomes don't, and plenty with low/little income do) and looks after the property as if it is their own. Again, this has no bearing on whether you have kids or pets as there are plenty of people who have neither who are poor housekeepers and/or cause damage, and plenty who have both who do a wonderful job of keeping a property properly maintained.

 

[NotAllPMsRBAD!]

Firstly : in Victoria a landlord cannot force you to sign a new lease agreement,a s a tenant you are within your rights to go onto a periodic tenancy (and no this does not effect the LL's insurance)

they could serve you a 120 NTV for no reason if they want to cut their nose off to spite their face.

If you want to dispute the RI then you can contact Consumer Affairs, who wills end out a rep to inspect the property and will speak to other agents in the area to see if the rent can be justified. If they deem that it should be lower than what it is now then they will write a report afterwhich you can then take the matter to VCAT to have the rent lowered.

but seriously it is $10 a week..... for the last 5 years LL's have been getting the short end of the stick when it comes to rental values... in the current rental market i would dare suggest that someone from consumer affairs would not go agains the $10 increase.

You may want to try and negotiate the increase with the agent/landlord down to $5pw or you can leave, or you can cop the $10 increase and be done with it. Simple

 

[Xenia]

My understanding was that month to month coul not be denied - you simply don't sign a new lease agreement. You'll still get the price hike, but you are not locked into the lease.

The Y-man

True!
However if the rules state fixed term OR vacant posession they are the only 2 choices a tenant would have.

 

[MissAlison]

Gosh, I ask for some advice, and I get some interesting posts, and some very informative one's. I wonder why I pay more for my unit than the two completely identical units each side of me. So, it seems that it's just the way it goes. Thanks, I have now worked out that I will take the rise and I will try to jump on a month to month. Seems like the best plan.

I am amazed at how I am being perceived as scheming, evil tenant.

Yes I have had some issues with the PM, not the LL. That is irrelevant to this discussion.

 

[HiEquity]

Talk about the complication of simple things!

The answer to the question is a firm and polite NO. Either suck it up or vote with your feet. It really is that simple.