Landlord Wants Me to Move out or to Increase Rent Because "They Can Not Afford My Current Agreed Rent" - Is This Allowed in NSW?

Blue Cat on 17/05/2021 - 18:05

So this email just shook my world out of nowhere and is really making me mad about the whole situation.

My fixed term contract ends at 19 July 2021, which I thought would allow me to feel safe and not to worry about rent increases or whatever for a while. We agreed on a fair market price that we were both happy with. So today, 17 May 2021, I got an email from a landlord saying they:

"can't sustain the initially agreed weekly rental price and we will have to return it to the owner and vacate the place unless you agree to one of the two options:"

  • You can continue rent the place with the same fixed term contract but with a 60% rental price increase, starting from next week
  • If you don't agree to the weekly rental price increase, unfortunately you will have to vacate the property as we need to find new tenants.

"Please let us know your thoughts and consider this as official 2 weeks notice to vacate the premises if you decide for option 2. (last day will fall 28.05.2021)"

I looked into my contract and there is a section that reads:

17.3 LANDLORD reserves the right to give the tenant a minimum of 14 day notice to vacate the property with no early termination charges.

Are there any NSW laws/help/support that can cover me or am I stuffed because I signed a contract and gave my rights away?

Thanks for reading…

Home & Garden

Comments

    • Deals For Days on 18/05/2021 - 20:43
      +1

      Thanks for updating us… hate to hear about all the headaches this would be causing you but it is always a nice read, especially when someone dodgy (landlord) is being stood up to.

    • duluxe2000 on 19/05/2021 - 00:02
      -3

      First you want to determine if you are a tenant or a lodger. Of course xCAT can determine if you are a tenant or not if there is a dispute

      If you are a tenant, you are protected under Tenancy Act. Stay until the end of your term if you wish

      If you are a lodger, things wi be different. Have a read here: basically "landlord" can give you a "reasonable" notice such as 7 days

      https://www.tenants.org.au/factsheet-14-boarders-and-lodgers

    • Tech5 on 19/05/2021 - 02:06
      +4

      Wow an actual ending update

    • lint on 19/05/2021 - 10:07
      +1

      Good onya, glad you got good advice.

    • tril3mma on 19/05/2021 - 16:35

      What a roller-coaster of emotions! Good luck for the future OP

    • try2bhelpful on 19/05/2021 - 18:16
      +1

      Thanks for the update. Best of luck for a good resolution. Frankly I would dangle NCAT in front of them whilst pointing out that the Tenancy Union people have highlighted the contract is full of illegal clauses. Unfortunately not enough people are aware of the Tenancy Unions to double check their rights. Best of luck with the house hunt.

    • [Deactivated] on 19/05/2021 - 18:22

      Anytime I called NSW Fair Trading, their advice has always been useless. ANY person off the street would be able to advice and guide you better.

    • studentl0an on 20/05/2021 - 16:19

      Well done at dissecting the problem, figuring out what needs to be done, and doing it.

      You didn't take it lying down but fought for your rights. That's a position of strength.

      Give yourself a well earned pat on the back.

  • htc on 18/05/2021 - 19:33
    +1

    Ozbargain could have a sub website called Oz current affairs.

  • ribze1 on 18/05/2021 - 19:49

    Out of interest which suburb is this?
    Trying to gauge where a 60% increase would make sense.

  • Punda on 18/05/2021 - 22:10

    How much are comparison properties at the moment compared? What do you may now? 60% seems unreasonable. Will they get that new sum if you move out?

  • randomusername2017 on 18/05/2021 - 23:43
    +1

    Sounds like a boarding house preparing for the return of international students..6 to a room style

    What is 60% in $$?

    • Other on 19/05/2021 - 19:15

      Probably >:-(

  • ankor on 19/05/2021 - 05:22

    Did the landlord's mortgage revert from interest only to principal+interest? That's an insane increase!

  • Team Ozgiftcards on 19/05/2021 - 06:45

    Good job sorting it out

  • kalithreaver on 19/05/2021 - 09:03

    curious to see what they reply with lol

  • ImpulseMan on 19/05/2021 - 09:20

    They recently had to issue us 90 days notice under the law in NSW, I believe updated due to corona.

    If I were you I would threaten an Ncat dispute.

    Not only is the notice illegal but that increase is illegal. There would be a mechanism in your lease or standard terms in the lease that outline the rent increase process.

    If they do not corporate file Ncat for an urgent injunction.

  • ThePriceMatchGuy on 19/05/2021 - 09:22
    +1

    Glad to see that curiosity won't be killing this Blue Cat!

  • pformag on 19/05/2021 - 10:02

    This needs to be pinned by mods, so we can know the outcome.

  • lint on 19/05/2021 - 10:05

    Start preparing to move out when your fixed term ends, in the meantime, you can continue paying the previously agreed rent. 60% increase is outrageous, and very very unlikely any tribunal would agree with them.

    • Lord Fart Bucket on 19/05/2021 - 10:43

      In this case, probably. Though my sister in law is currently trying to evict their tenants (fixed period finished), and the tribunal yesterday agreed to double the rent for the tenants to give them an incentive to move out.

  • Magnastar on 19/05/2021 - 13:48
    -3

    So the moral of this story is the dodgy landlord wrote an illegal contract full of clauses to intimidate a tenant into doing what they wanted regardless of the law. Tenant is intimidated and wants to avoid NCAT but wrote an email softly pretending to stand their ground and will no doubt get a reply from the landlord not budging and tenant will just move out in two weeks as landlord wants. Landlord has obviously played this game with weak tenants before, and he’s won again this time. Better luck to the next tenant I guess.

    • Other on 19/05/2021 - 19:16

      how has he lost?

      Landlord will have to go to the Tribunal and lodge fees.

      (Tenant does not have too).

      Fixed agreements do end anyway - op can find a new property.

      • Magnastar on 19/05/2021 - 19:20
        -1

        No the landlord won’t. Tenant doesn’t want to deal with NCAT so mentioned they will likely move out in two weeks which the landlord wanted.

        • Other on 19/05/2021 - 19:23

          Well reading the last post of Op, Op never mentions moving out.

          Rather he says we can go to NCAT.

          Looks like he will demand the landlord honors agreement, which is a sort of win for Op, but a loss for the landlord who wanted more rent.

          • Magnastar on 19/05/2021 - 19:28
            -1

            @Other: Last Update

            Worst of all, she believes this contract is pretending to be a contract where I am a "lodger", so the landlord believes the Tenancy Act wouldn't apply to me and they can do whatever they want, while in practice I am basically a sub-tenant for practical purposes, so the Tenancy Act should apply to me, but only the NCAT hearing can decide and confirm this 100%. There are high chances they will be forced to give me a 60 day eviction notice which I would be happy to oblige, but who the hell wants to go to NCAT?<

            Sounds to me like they want to avoid NCAT and if the landlord doesn’t budge the tenant will just fold and move out as requested.

            • Other on 19/05/2021 - 19:34

              @Magnastar: No.

              Op is confusing stuff.

              End of the fixed term agreement: 30 days Notice.

              I have no idea about the 60 days:
              https://www.fairtrading.nsw.gov.au/housing-and-property/rent…

              • Magnastar on 19/05/2021 - 19:46

                @Other: You missed a reply from OP mentioning they may just move out to avoid the drama. You mentioned 30 days but that’s not what I’m taking about in my original reply.

                Landlord created an illegal contract full of clauses to intimidate the tenant, and now wants to put the rent up 60% or for the tenant to move out in two weeks. Tenant doesn’t want to deal with the NCAT process so has sent an email asking to see out the contract at the current terms but when the landlord doesn’t budge, which I assume they won’t, then the tenant will just move out and landlord gets what they want anyway.

    • tokyocalling on 19/05/2021 - 14:26
      +3

      Lol. I bet you’re a really nice landlord to deal with.

      • Miss B on 19/05/2021 - 15:35
        +2

        Honestly, they don't seem like the kind of person you'd want any kind of interaction with. Clearly spoilt and had everything handed to them on a platter and it's ruined them. They don't even have enough awareness to realise everyone else doesn't have the same experience and actually have to earn things, even just that most people need to rent while they save up a deposit is beyond their comprehension.

    • Greem85 on 19/05/2021 - 14:27

      Nice troll post. Will not bite though ;)

    • Quantumcat on 19/05/2021 - 14:30
      +2

      There's lots of reasons to rent rather than buy.

      If you want to move around, working for a year here six months there, owning where you live is a massive liability. Trying to time selling your house and buying a new one is very stressful. It can take many months for all the settlements to happen and every time you sell and buy you are paying stamp duty so you're spending money for no good reason. By renting there's no cost to moving except the moving itself, and you can find yourself a new place in your new city and be moved in in a week or two.

      There's also the fact that owning a house is a financial risk - if the heating blows up or you get a roof leak, you could be up for thousands in repair. When you're renting you know what you need to pay each week and budgeting is simple. Renting is also overall cheaper than mortgage + rates + maintenance. You might not have an asset at the end of it, but that's people's choice. They might prefer to invest in the stock market.

      • Zachary on 21/05/2021 - 02:35

        Renting is also overall cheaper than mortgage + rates + maintenance.

        Maybe in the short term, less than a year or a few months like you said but any longer and you may as well save up and buy/build a house or go back and crash with your parents and live rent free….

    • Zondor on 19/05/2021 - 14:47
      +1

      You clearly have no idea

    • ribze1 on 19/05/2021 - 19:58
      +1

      Found the Liberal voter

    • miicah on 20/05/2021 - 11:52
      -1

      Also why choose to rent when often the amount you pay in rental fees could be used to get into a mortgage?

      Because banks won't give you a loan unless you've saved (possibly) >$50k?

  • [Deactivated] on 19/05/2021 - 14:43
    +1

    Give the landlord a big (profanity) you from all of us. Glad it turned out well for you OP :)

  • Fredfloresjr on 19/05/2021 - 15:57
    +1

    60% lol. Tell your real estate agent don't charge you for his divorce application fee.

  • [Deactivated] on 19/05/2021 - 18:20

    Write down lessons to take for renters: I'll start

    1) Leave the landlord before they randomly go berserk

  • whoopdeedoo on 19/05/2021 - 18:27

    post your contract up

    • Other on 19/05/2021 - 19:18

      Landlord tried to make it a lodging contract, so almost never applied anyway.

  • Blue Cat on 19/05/2021 - 20:02
    +26

    OK another quick update.

    First things first, I am SCARED at the moment to post the suburb, the agency/landlord names, my contract or other private details because they have already established that they are an aggressive landlord ready to skin me alive and I do not want any more trouble than I have now. I will provide more details when:

    • My contract has ended and I have moved out OR I have been kicked out
    • And when my bond has been returned

    Today, I didn't receive an answer from the landlord yet and I didn't receive any communication from Tenants' Advice and Advocacy Service, though, I think they meant for me to call them back, maybe a mistake on my end. I will try calling them tomorrow.

    But a bit more details, I am renting a studio apartment, with it's own tiny kitchen and an ensuite. I do not live with anyone else and I am in practice not a lodger, because, like the helpful lady said, if I am a lodger, I need to be living together with a (sub/head?-)tennant and/or they should be providing me meals. I live completely independently, probably no different from people renting 1 or 2 bedroom apartments/units.

    I have to admit, it was my mistake to be complacent and think that "lodger" and "renter" are synonyms and can be used interchangeably, so I didn't pay attention to it when signing… big WHOOOPS and a Certified Full Retard Award goes to me, with a big warning to anyone else who sees the word "lodger" in their contract - start questioning WTF you are signing! However, if I go to Tribunal, it is most likely I will have rights of a tennant, if they even go past all the illegal clauses in the contract.

    I signed this contract on April 2021, so if anyone believes that it is at all reasonable for the rent to increase 60% in about a month, I will have to disagree with you completely. If anyone knows which suburbs are growing 60% in price per month let me know, I am happy to invest my savings there :)

    Thanks for all the support and I will update again soon as I hurry to deal with other real life problems. It's one of those episodes where you are bored and live happily for months and then all possible bad things from all directions start coming at you at the same time.

    • Greem85 on 19/05/2021 - 21:04
      +11

      Mate, under no circumstances you should be feeling scared when renting from anyone. The LL, if he/she knows what is good for them, should not dare to enter the premise without your explicit permission. If you think it might be an option on their end, remember that you can always have a chat at a local police station about this situation and ask for them to take a note of it, plus give you an advice on how you should behave to assert your full rights.

      • xylarr on 19/05/2021 - 21:45
        +8

        +1 above. If you, in any way, feel threatened, go to the police. Don't tell them you are going to the police, just go.
        Anyway, we all have your back here - definitely keep us updated.

    • Mistredo on 20/05/2021 - 01:17
      +2

      A contract just for three months? That's unusual.

      • MorriJ on 20/05/2021 - 12:29

        A contract just for three months? That's unusual.

        Why is that unusual?

        • Mistredo on 20/05/2021 - 12:51
          +1

          Landlords usually prefer longer contracts, so they don't have to deal with the hassle of searching for a tenant, so they don't risk having a period when nobody is paying rent.

          Longer contracts are also better for tenants, as they give them more stability. Nobody wants to be moving very frequently.

          The most typical contract is 12 months.

    • dane45 on 24/05/2021 - 11:38
      +2

      Let's avoid using the term r-tard, but dont beat yourself up - smarter people have made sillier mistakes. The contract was obviously designed to deceive you, so I'm sure you're not the first person who they've manipulated in this way.

      In addition to the advice that the tenants service has given you, I think the most powerful weapon you have in this situation is good, organised record-keeping. Keep a diary of all communication (mode of communication, date, time, what was said, who you spoke to, length of the call) related to this issue, save all emails, gather all rental doc you've received (lease, rent receipts, etc). Hopefully it's not required, but having this paper trail will be good in the event that you need to go to NCAT or, god forbid, the police. Google drive is a good option :)

      If you feel threatened or unsafe, go to the police, directly to the police (do not pass go, do not collect $200). No matter what they've put in the contract, remember that the landlord cannot show up without proper notice and legitimate reason. They also cannot evict you or change the locks without an order from NCAT. Again, if they attempt either of these things, go to the police.

      As much hassle as it is, do not be afraid to engage NCAT. It's designed to be accessible to regular people, and they will make it clear to the landlord in no uncertain terms what is acceptable under tenancy law and will protect your rights as a tenant.

  • imurgod on 19/05/2021 - 20:41

    The landlord obviously wants you out. They know a 60% increase isn't going to stick but they want you to be the one to terminate the lease and go.

    Also, they've been as subtle as a sledgehammer about it.

    I've gotten rid of tenants numerous times. It's not difficult but this isn't the way to do it.

  • lovedeals on 19/05/2021 - 23:18
    +4

    Sounds like a scam tbh

    Let tenant in for cheap rent then threaten them if they don’t pay 60% more

    • velcrochicken on 20/05/2021 - 08:07
      +3

      Agree that it's clearly a scam. That's why they have all the rediculess clauses about charging money if taken to tribunal, they are basically trying to bluff you into just paying the absurd rise they had always planned on doing.

  • [Deactivated] on 20/05/2021 - 12:31

    When did legal maximum of 10% rental hike change?

    • [Deactivated] on 20/05/2021 - 16:30
      +1

      No state in Australia has this law, you might be referring to New York which is rent controlled and very renter friendly.

      • [Deactivated] on 20/05/2021 - 16:41

        My mate was told he couldn’t pump the rent up on his investment property more than 10 percent every 6 months?? Maybe that’s old news now

  • Greem85 on 26/05/2021 - 13:12
    +3

    OP, we need an update on the situation. You still with us? :)

  • Blue Cat on 26/05/2021 - 16:16
    +10

    OK I guess I got the good ending, but fun didn't stop so suddenly.

    So after the "nice" email I sent to them, they only got back to me on Monday evening, basically saying "they are very sorry for the inconvenience caused" and that the last email was "incorrectly addressed to the wrong person", even though they used my correct first name, my correct unit number and my correct address??? They also told me to delete the last email as it was not meant to be addressed to me and keeping it might be against the Australian Privacy Act (things that make you go hmmmmmm???????????….) My contract will remain unchanged and I can stay the agreed duration.

    Anyway, crisis averted for now, gonna stay my duration and move out. Tenants' Advice and Advocacy Service has also wrote back to check up on me today, after I had forwarded to them the "nice" email I wrote for the landlord, saying the reply is clear and firm and all that is left is to take it to Tribunal if there are any more problems.

    I don't feel threatened by the landlrod/agency, it's just that I didn't want any more trouble RIGHT NOW. If this had happened in January, I would have went to Tribunal straight away without any worries. Also, like I said, I will upload my contract once I moved out and have successfully got my bond back to avoid any further dramas for now.

    Lessons learned, for anyone else going through something similar:

    • Do not contact Fair Trading - it was useless and a waste of time. You can try though…
    • Do not speculate or try to be a lawyer searching for answers - just contact your local Tenants' Advice and Advocacy Service found at https://www.tenants.org.au/, explain the situation and forward them your contract and email communication with your landlord or agency. They are being paid by the government (a.k.a. your tax money!) to find loopholes that landlords/rental agencies try to accomplish, and I think I just helped them find a new target to take care of. They are helpful and calm and will explain your rights in regards to your specific contract and situation… where's NSW Fair Trading was "just follow the contract bro lmao"

    However, keep in mind, they can't legally guarantee you a 100% win at the Tribunal, and they also can't force you to write something to the landlord/agency, so it is up to you to make those choices, but they give really helpful tips on what to include, what not to include, which things are in your favor and which ones are in the landlord's favor.

    But, in the end, I would have been hopeless without them, so I am thankful that their service exists. I hope nobody has to deal with this kind of crap, but such is life.

    • Greem85 on 27/05/2021 - 10:58

      Glad to see it all ended well mate!

      Landlord claiming it was a wrongly sent email is BS big time, they just backed away and took their battle elsewhere, after they have noticed your firm stance (and possibly the TAAS in the CC?).
      As other people have pointed out, your LL is probably running an extortion scam, where he lures you into signing a bogus contract first for a low rate, and then suddenly changes his mind and tries to use loopholes planted in said contract to make you believe you have signed your rights away.

      • Blue Cat on 27/05/2021 - 11:22

        (and possibly the TAAS in the CC?)

        Weirdly, the TAAS told me not to CC them in the original “nice” email to the landlord, but forward the email to them separately.
        I didn’t ask why because I didn’t want to be a smartass and they have been very helpful that day already.

        • Greem85 on 27/05/2021 - 11:46

          Maybe they cannot openly act as your representatives in front of the LL/REA, but can guide your actions behind the scenes?

          Anyway, all is well that ends well - be sure to find yourself something comfortable in a nice neighbourhood from July, and steer clear from offers which sound too good to be true - they normally are.

    • Pelicannn on 16/06/2021 - 22:56

      basically saying "they are very sorry for the inconvenience caused" and that the last email was "incorrectly addressed to the wrong person", even though they used my correct first name, my correct unit number and my correct address??? They also told me to delete the last email as it was not meant to be addressed to me and keeping it might be against the Australian Privacy Act (things that make you go hmmmmmm???????????….) My contract will remain unchanged and I can stay the agreed duration.

      This is absolute bs… and any court would throw the book at them faster than they could shred their dodgy contracts if they pulled that excuse out.

      I actually reckon you'd have a good case to take your LL / REA to court for causing uneccesary stress or loss of income if you took time out of your work day to spend time calling TAAS / Fair Trading. That would be the absolute slap in the face back to those ass hats.

  • Greem85 on 17/08/2021 - 15:51
    +1

    OP, have you moved out of that place since your last post? Did you hit any more bumps along the way?

    Name and shame the agent/landlord now, if possible! :)

    • Blue Cat on 17/08/2021 - 18:28
      +4

      I did hit some bumps moving out, some not landlord related - long story short, I have moved out about a week ago, but due to the contract "rules", my official move out day was only yesterday (16th August 2021) so now I gotta wait 21 days… oh sorry, 21 BUSINESS days to bet my bond back.
      If I don't forget, I will talk more when I get my bond back, otherwise, feel free to reply to this thread after 21 business days, I will spill the beans!

      • Greem85 on 18/08/2021 - 09:26

        Good to know! I am eagerly waiting for more juicy details, as I have also had some problems while renting in the past, and I am wondering about your whole experience.

  • HelpMeiCantSee on 22/08/2021 - 10:22

    Please keep us updated and let us know when you get your bond back. The landlord sounds like such a game playing scamming POS. Looking forward to reading the contract, should be a hoot!

  • Greem85 on 11/09/2021 - 09:20
    +2

    How are things, OP? Did you get your bond back? Can we hear the juicy part now? :)

  • Greem85 on 27/10/2021 - 01:52

    It seems like we will never hear the full story on that case :(

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