Rental Increase Notice Two Days after Resigning on Lease (VIC)

LBigBrickBoy on 07/02/2019 - 11:14

Hi All,

I just signed resigned my new lease, I was originally on the wall about it, due to potentially moving for work.

Two days after I signed the lease, I received a notice for increase.

I have read the Rent Increases Info on Tenants VIC, it doesn't bar this from happening, but I feel like it was
a bait and switch, especially considering I had been talking to agent regularly up until this day.

Anyone ever had this happen, I am tempted to negotiate, I'm more annoyed, if I had been told there may be a rent increase
after resigning the lease, I would've been fine with it.

Home & Garden Rental

Comments

  • HighAndDry on 07/02/2019 - 11:23

    I have read the Rent Increases Info on Tenants VIC, it doesn't bar this from happening

    That's that. You got the required notice period (30 days or whatever it is) right?

    if I had been told there may be a rent increase

    Was there anything preventing the landlord from increasing the rent? If not, then you should've operated on the basis that there always may be a rent increase.

    But yeah, you do have options: Try to renegotiate, see if you can argue the rent increase is unreasonable, and/or see if there's anything in your tenancy agreement that lets you get out before the end of the term. You can exercise your rights, same as the landlord exercised theirs.

    • Tech5 on 07/02/2019 - 11:41
      +7

      I feel like rent cannot change on a fixed term lease. It can only change on a open ended continuous one. Otherwise, what is to stop the landlord from increasing it say from $200 to $1000

      • HighAndDry on 07/02/2019 - 11:46
        +2

        I feel like…

        Let me stop you there and point you to this. It does say that you can't increase the rent in a fixed term lease "unless the terms of the lease allow for this".

        If OP's lease doesn't allow for it, easy solution. I'm going to assume it does though, because OP says he's read the documents and understands the landlord can in fact increase the rent.

        • Tech5 on 07/02/2019 - 11:48

          Here's hoping OP didn't sign up for a lease that allows for any amount of rent increase, rather than a fixed percentage/amount. No-one can be that daft.. Can they?

          • HighAndDry on 07/02/2019 - 11:54
            +1

            @Tech5: It might be some innocuous special condition that says something like "only reasonable rental increases are allowed during the term of the tenancy". Which sounds fine and maybe even good for the tenant, but is vague and open-ended and doesn't actually protect the tenant because only reasonable increases are allowed under the law anyway.

            • bobbified on 07/02/2019 - 12:53
              +2

              @HighAndDry: In all my previous agreements through a few different agencies, I've seen that clause. It simply says that they "may increase the rent by providing 60 days notice". Although the couple of minor ($10/week) increases that I did get over a period of 5-6 years were always outside of the agreement period.

              Seeing that clause in there (I didn't realise it was a non-standard clause at the time) really made me think that there was no real benefit for a tenant to be locked into a lease agreement if they didn't need to be. During the agreed period, the landlord can increase the rent and can still provide a Notice to Vacate under certain circumstances (the reasons aren't always readily verifiable, so I had to factor in the thought that even if they lied about a reason to get me out, there's not much I could really do to prove otherwise). Whereas, a tenant is locked in for that whole period and is up for a range of costs if they want to leave.

          • JIMB0 on 07/02/2019 - 12:59

            @Tech5:

            No-one can be that daft.. Can they?

            It'd be the same as people who drive without insurance. Leaving themselves open to a potentially large liability.

            • bobbified on 07/02/2019 - 13:08
              +2

              @JIMB0:

              Leaving themselves open to a potentially large liability.

              There's a safeguard in the rules though so even if the 60 day rent increase clause is there, the increase can be challenged by the tenant at the relevant tribunal if they think it's unreasonable amount.

              • [Deactivated] on 07/02/2019 - 18:06
                +1

                @bobbified: I've rented commercial properties. Because commercial properties typically have longer leases and options for renewal, I can see why a price increase clause needs to be in place. By extension, I can understand why it is also in residential clauses as renters may potentially be there long term.

                During my search, I found that many landlords have their increase clause left ambiguous. Perhaps it is an industry norm but I as the person signing takes ultimate responsibility for the contracts I sign (regardless of the allowances the law allows me). I made sure to specify the maximum allowable increase and if an increase occurs, it is benchmarked to CPI.

                I hear some friends who are still renting tell me, "it is unreasonable to expect ordinary people to go through all that…". I'm not extraordinary. It's basic responsibility and it is irrelevant if I'm renting to stay or to trade.

                TLDR - it is my responsibility to limit my liability and it is the same for anyone else.

                • orangetrain on 07/02/2019 - 21:13

                  @[Deactivated]: I haven't seen any renters who get the contract before the deposit. As a result, despite a lot of complaining, they still sign the lease rather than lose $400-1000.

                  • [Deactivated] on 07/02/2019 - 21:23

                    @orangetrain: There's always a contract before the "deposit" otherwise you have been taken for a fool.

                    What if you paid a deposit and the contract is for double the advertised rate? Does your deposit vanish?

                    As a renter, there is a bond and advance payment. Bond is a formally lodged. Advance payment is actual rent.

                  • HighAndDry on 08/02/2019 - 16:15

                    @orangetrain: Absolutely zero obligation to pay any deposit before you see the contract. Of course, also zero obligation a landlord needs to rent to any particular prospective tenant.

  • bobbified on 07/02/2019 - 11:33
    +6

    Rent increases in tenancies
    The landlord or agent must give the tenant at least 60 days’ notice of any rent increase, using the Notice of rent increase to tenant/s of rented premises.

    The landlord or agent must not:
    increase the rent more than once in any six-month period 
    increase the rent before the end date of a fixed-term agreement, unless the terms of the lease allow for this
    (https://www.consumer.vic.gov.au/housing/renting/during-a-lea…)

    Do the terms of your lease allow for rental increases? If there's nothing specific about allowing for increases that quickly, it means it's not allowed.

    If you believe the amount it is being increased by isn't reasonable, you can also ask for a Rent Assessment (as per the information in the above link).

    • Typical16-bitEnjoyer on 07/02/2019 - 11:43
      +2

      ^ Exactly this. Standard Lease won't include a clause allowing rental increases. Does the Lease have this clause added?

      • bobbified on 07/02/2019 - 11:49
        +21

        For the record, even if the lease conditions allow for it, I would be very pissed if a landlord/agency did that to me immediately after signing the lease. It's a pretty dog move.

        Even if I didn't think that it'd result in anything, I'd drag them through the whole assessment, review and tribunal process just for the heck of it.

        And later on when they would like to open the place up for inspection new potential tenants, I'd be carefully reading the lease agreement and exercising every single one of my rights in the to not make things easy for them. Any minor things that need to be fixed, I'd be calling the agent and acting like a completely spoilt kid.

        • HighAndDry on 07/02/2019 - 11:52
          +6

          Yeah agreed with this. Pretty stupid move on part of the landlord/agent, because it basically destroys any goodwill in the relationship. And while the tenant might have their bond on the line, the landlord has the entire property plus potential future tenants at risk.

        • [Deactivated] on 07/02/2019 - 12:21
          +5

          I hope the rent increase was minor and you can absorb it.

          If it is, consider it a gift. You've learnt a great lesson at a low cost and you have been given a guilt-free pass to be the biggest pain in the ass tenant the landlord will ever have.

          It is immensely, nay, intensely fun to turn technicalities against the person who drew first blood.

          Ps. A great way to lower the perceived value of property without breaching any code is food smells. Bad shellfish stinks. It would be a shame if you accidentally left some unrefrigerated the day before an inspection.

          • HighAndDry on 07/02/2019 - 12:26
            +5

            @[Deactivated]: Man, remind me never to get on your bad side.

            It would be a shame if you accidentally left some unrefrigerated the day before an inspection.

            This is downright evil.

            • [Deactivated] on 07/02/2019 - 12:29
              +5

              @HighAndDry: Drew inspiration from a mate who rented an apartment from a classic slumlord bad landlord.

              The previous tenant shoved a few uncooked clams into the hollow of the curtain rod (which does not have a cover).

              The stench was unbearable and worse when the window is open (air flow disperses the smell). It took months before he found the stink trap.

            • Rel63 on 09/02/2019 - 09:24

              @HighAndDry: I heard a story a while ago about a divorce where the wife had put so much effort into making their home (from design, dealing with building, to full interior design) and was proud of what they had. A yr or 3 down the road and they separate and she wants the house because it means so much to her but the hubby wants it to piss her off. So unless she can buy him out (he had the money to buy her out, she couldn't afford too), she would lose the house.

              A crafty friend suggested she put some prawn scraps in the vents on the day she moved out. Hubby moved in with his new girl and was feeling real proud of pissing his ex off-he would make comments of how much his new girl loved the house. A few weeks later the wife got a call from hubby about a rotten smell in the house and did she know anything about it, of course she said no. His new girl had moved out, it was so bad and he was staying with a friend. She waited a few weeks more and he had cleaners and pest guys in, he'd spend a crap load of money trying to sort it out.

              He then asked her if she was interested in making him an offer for the house, saying he would take less than he paid her. She offered about half and he agreed, so he moved out and she moved in making sure to completely clean out the vent she put the prawns in. All good, no smell.

          • bobbified on 07/02/2019 - 12:30
            +2

            @[Deactivated]:

            A great way to lower the perceived value of property without breaching any code is food smells.

            haha - that was exactly what I had in mind! Curry and fish sauce came to mind straight away! Plus there's nothing that specifies how tidy the place needs to be during the inspection and how the tenant needs to be dressed (if the tenant IS dressed!).

            Calling the agent to replace a lightbulb could easily cost the landlord over $100. Instead of simply going to the supermarket or wherever to get a lightbulb and replacing it, I'd be making separate calls for each light.

            The shifty real estate agent and landlord obviously hasn't thought about how much hell a pissed off tenant can give back.

      • afah0447 on 08/02/2019 - 16:14

        Well played sir!

    • [Deactivated] on 07/02/2019 - 12:00
      +4

      The landlord or agent must not:
      increase the rent more than once in any six-month period

      I guess if it rent increase is allowed as per lease, at least good to know it won't be changed again for at least 6 months .

      I think it is a pretty dodgy tactic though IMHO, to increase 2 days after rental agreement signed. I wouldn't go through that real estate agent again.
      And I would post online about the experience, to warn others (if you don't get a fair result, give real estate an opportunity to fix this, negotiate on the rental increase, and explain how you do not feel it is fair).

      • trustnoone on 07/02/2019 - 12:25
        +4

        So true, I'd be putting a complaint in everywhere, legal or not.

      • Chandler on 08/02/2019 - 10:41

        I wouldn't go through that real estate agent again

        It may not have been the agents call, it could have been the owners.

        It was probably the agent, but not definitely.

  • TheBilly on 07/02/2019 - 12:26
    +4

    Why not just move out and stick it to the land lord. Lost rent of a few hundred a week will be much more than the increase.

    • bobbified on 07/02/2019 - 12:33
      +1

      Why not just move out and stick it to the land lord.

      Except OP has only just signed the lease. Moving out will cost the OP the usual break-lease costs, one of which involves compensation for the period until another tenant is found.

      • TheBilly on 07/02/2019 - 15:29
        +1

        I find it hard to believe the agreement is written in way where he HAS to accept the increase and doesn't have a choice without financial penalty. I could be wrong though.

        • bobbified on 07/02/2019 - 15:44

          I find it hard to believe the agreement is written in way where he HAS to accept the increase and doesn't have a choice without financial penalty

          The landlord/agent has to give 60 days notice to the tenant on a specific form (below)

          https://www.consumer.vic.gov.au/library/forms/housing-and-ac…

          At the end of the form, the tenant has an option to contest the rate increase by requesting a Rent Assessment within 30 days of the notice, followed by a VCAT order where applicable.

    • Quantumcat on 07/02/2019 - 12:34

      He'll probably be up for paying the rent until the place can be re-let if he moves out during the fixed period. Not sure if the notice for rent increase allows him to move out.

  • blonky on 07/02/2019 - 13:56

    You could always give your advance notice to terminate now (for when the lease expires) if you wanted to something but nothing.

    I'd speak to the agent first though and ask why it's being increased so early, and that you would like to stay longer term but not at that price.

  • andmcg on 07/02/2019 - 16:35
    +2

    It's absolute BS that it is legal. I am a landlord myself, but still completely appalled by this.

    So what is the benefit of a tenant signing a lease agreement if rent can still be increased during the term? People often think that it protects them from being evicted. But you cannot evict someone without a good reason anyway (nor would you usually want to).

    It sucks how much the system in VIC/Aus does not protect renters.

    • [Deactivated] on 07/02/2019 - 17:34

      So what is the benefit of a tenant signing a lease agreement if rent can still be increased during the term?

      It is not in the standard contract. It is a special condition. If the renter agrees to it, then why should it be a problem? We don't need a law protecting people from agreeing. They can simply disagree.

      The issue here isn't the law, it is people signing things without understanding.

      The issue in this particular instance is the above but only secondary to the fact the landlord exercised these special conditions in an opportunistic manner.

      • andmcg on 07/02/2019 - 17:52

        But what is the benefit to the renter to sign the lease agreement? It sounds like they are just for the landlord/agent if the law allows adding a condition allowing rent to be increased.

        In the real world, agreements/contracts are unfortunately usually not negotiable. If you don't like them, then you don't get that house/job/rental. The law should have provisions preventing anyone putting unreasonable conditions in their contracts.

        • [Deactivated] on 07/02/2019 - 17:54

          The law should have provisions preventing anyone putting unreasonable conditions in their contracts.

          It does. You cannot add a condition that contradicts the law or is criminal.

          This special condition isn't against the law, it is simply not part of the standard agreement and I agree, it should not be standard.

          If you don't like them, then you don't get that house/job/rental.

          And you won't get the problems of being stuck in an agreement with things you don't actually agree to. This applies to landlords too. If the law starts dictating what conditions can be placed to the point to dictating price, then the landlord is being forced to agree to something they don't agree to.

          Seems a bit disingenuous to want one party to have choice but the other to go without.

          • Hoofee on 08/02/2019 - 09:34

            @[Deactivated]: How are the non-standard conditions displayed within the contract? Intertwined with standard conditions or within their own section?

            Maybe a solution would be to require non-standard conditions to be placed into a section titled "Non-standard conditions", so that it is more clear to the tenants which conditions are/aren't typical. I think this would be more informative to the tenant if it's not already done.

            • [Deactivated] on 08/02/2019 - 09:35
              +2

              @Hoofee: All at the end of the contract titled - special conditions.

    • HighAndDry on 08/02/2019 - 16:19
      +1

      But you cannot evict someone without a good reason anyway

      I don't see how this leads to:

      It sucks how much the system in VIC/Aus does not protect renters.

      It seems to me the system protects renters well if they can't be evicted without a good reason anyway even outside a fixed term contract, whereas tenants can easily terminate a tenancy outside the fixed term without any reason.

  • andmcg on 07/02/2019 - 16:43

    There could be a cooling-off period on the contract? From memory, this applies to all contracts.

    You could maybe use that to negotiate. And be honest with the agent, saying that you are not happy.

    If you're a good tenant, they'd prefer to keep you and not increase the rent, rather than have to look or a new tenant.

  • CyberMurning on 07/02/2019 - 16:50

    There was another post for something very similar with this. But NSW. Try search and you two can discuss further?

    https://www.ozbargain.com.au/node/433026

    • [Deactivated] on 07/02/2019 - 17:51

      Two separate issues.

      The other one is about negotiation before signing.

      This one is about exercising a pre-existing special condition in the original and subsequent contracts immediately after renewing the contract.

  • Meho2026 on 07/02/2019 - 19:07

    How many months is your new lease for?
    Do you rent through a real estate agent?

  • Fier2 on 07/02/2019 - 21:25

    What is the market price? Do you pay higher ?

    https://www.consumer.vic.gov.au/housing/renting/during-a-lea…

  • alxr0101 on 08/02/2019 - 07:23

    Challenge it…contract not negotiated in good faith.

  • theguru1 on 08/02/2019 - 07:43

    In signing the lease both parties have agreed to its terms and conditions including the rent. Unless there is a specified clause allowing for 6 monthly increases the rent is fixed for the term of the lease.

    • terrys on 08/02/2019 - 08:20

      Have you considered reading the post and replies?

      TLDR: No, it's not.

      • theguru1 on 09/02/2019 - 07:57
        +1

        Not sure what you mean., I have done hundreds of leases, probably have a bit of an idea.

      • theguru1 on 09/02/2019 - 08:14

        The replies from the OP you mean?

          • theguru1 on 09/02/2019 - 10:46
            +1

            @terrys: Yeah, I do know this stuff, hence the comment. I don't see where the OP has stated what is in his lease. He did sign it and would have a copy.
            Either way, a rent increase would not be straightaway. It would either be in 6 months or the end of the lease. The Agent should have done the rent increase with the lease in which case notice isn't required.

  • eggles01 on 08/02/2019 - 18:43

    Contact the "TENANT UNION OF VICTORIA" there are more contacts in the victorian phone book,you can also contact,Dept Victorian Consumer Affairs

  • ozbjunkie on 08/02/2019 - 19:11

    How much $ and % is the increase. When was it last increased?

    Agree that cannot increase during a fixed term lease.

    The idiot agent probably forgot to increase after last lease.

  • theguru1 on 09/02/2019 - 08:10
    +1

    Looks to me like the Agent stuffed up, as they should have incorporated the rent increase in the new lease. To me they either have 6 months before increasing the rent, if they have a rent increase clause overriding the fixed term, or have to wait for the lease term to expire.

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