Help - RE increased rent with insufficient notice

Hello everyone, REA recently sent an email to advise a rent increse effective in 10 days. I responded to say they need to provide 60 days notice. Yet to hear back from them.

However, in the rent increase notification, they also quoted the increase which is $200 less than we currently pay. What is my recourse, should there not be a response from the agent? Should I start paying in 60 days and pay the amount they mis-quoted in their email? Or will I get my butt kicked should it go to NCAT, as I should know the amount was incorrectly quoted and said nothing? I mean, I can't even tell what the correct increase should be as they didn't provide a percentage or any other indication as to how they calculated the increase.

For some background, the REA are a$$holes so I have no sympathy for their errors. The owners are decent enough, but heck, I'm happy to exploit any loopholes as much as the next guy.

Added: Current rent is $750, new rent that was quoted was $550. I reside in Sydney's NW burbs.

Thanks in advance for your constructive(?) feedback.

Comments

  • +4

    Heaps of info here: https://www.tenants.org.au/factsheet-04-rent-increases

    What if the rent increase notice is incorrect?
    If you do not get 60 days notice and/or the notice is not given in writing, you do not have to pay the increased rent.

    For most agreements, if the landlord/agent tries to increase the rent within the first 12 months since the start of the tenancy, or more than once in any 12 month period after the first year of the tenancy, you do not have to pay the increased rent.

    Continue to pay your current rent. It is a good idea to write to the landlord/agent explaining that the notice is invalid. See Sample letter: Invalid rent increase

    If the landlord/agent still wants to increase the rent, they must give you a new notice.

    If you pay an invalid rent increase, you can apply to the NSW Civil and Administrative Tribunal (NCAT) for repayment, but you must apply within 12 months of the increase. It’s a good idea to get advice from your local Tenants Advice and Advocacy Service if you want to make an application.

    I wouldn't draw attention to the fact they didn't give required notice.
    Also worth checking if the rent increase notice is otherwise valid.
    You don't have to pay the increased rent until 60 days after a valid notice is sent to you. Add 7 days from the date on the letter if it was sent by snail mail.

    However, in the rent increse notification, they also quoted the increase which is $200 less than we currently pay.

    So are you saying they sent you a notice to increase the rent, but the amount they are 'increasing' it to will be $200 per week less than you are paying now? It might just be your lucky day. Did they use the correct address in the notice? I'm thinking perhaps the agent sent someone else's rent increase notice to you by mistake.

    • Thanks, tenpercent! I missed the part about having to provide a new notice if it's invalid. Had I have noticed that, I would have shut my pie hole. No matter, they don't seem to have noticed my response as yet. I'll wait til I get a valid notice, and keep paying the rent as it stands. Woohoo for me.

    • +3

      Technically it's not a rent increase at this stage. I would insist on 60 days from the email they send you when they quote a legitimate increase.
      I also love the idea of the 0.001% chance it's an intentional rent decrease, in which case no notice is required and so the 10 days is sufficient.

    • +4

      This 60 days notification period does NOT apply to Rent DECREASES.

      Hence the 10 days notice is acceptable.

      OP should keep quiet and start paying the lower rent when it falls due.

      • Can they legally request you pay the amount back in future once realised?

        Or because you already accept the decrease they cant request the correct amount backs?

    • +7

      "However, in the rent increase notification, they also quoted the increase which is $200 less than we currently pay. What is my recourse"

      Are you serious OP?

      You want recourse for a rent decrease of $200pw ???

      Surely this post qualifies for the 'Dumb award of the year"

  • You are somewhat correct, depending on your state the REA needs to provide 2 months, 8 weeks or 60 days written notice

    • WRONG!

      Rent can be reduced at any time with minimal notice

      • Surely rental agreements are subject to the usual contract laws?

        Only three ways the terms of a contract can be changed, so I'd argue that even a decrease may not be legit in all circumstances.

  • Is it possible that the amount they quoted is the amount they want to increase the rent by, and not the new total? Also, is it possible that they sent you a notice to increase the rent 50 days ago that you missed and that this is another reminder? I would double check both of those things.

    • That would mean their rent doubled (minus $200). Which would be nuts.

      • We would need to know the cost of their original rent to calculate what the percentage increase is. Very large rent increases can also happen in some parts of Australia when demand is very high (e.g. Sydney). This can hit hard if the original rent was relatively cheap and is now being brought up to market value in a competitive market.

    • Hi wizzy, good question. Current rent is $750, new rent that was quoted was $550. As insane as rental prices are in Sydney, I dont think they could get away with an increase of $550…nor could I afford it. Unless there's a sugar daddy out there looking to help me out 😆

      Also, my lease has only just expired/reached 12 months, so this is the appropriate time to increase my rent.

      • +2

        Yes that would be a huge increase even by Sydney standards! I have heard of 50% increases, but not 70-80% increases.

        This sounds like the REA made a typo. In which case they need to correct it and send the proper 60 days notice. Fingers crossed they are only asking for a small increase. Good luck :)

  • +1

    If they never sent you a valid notice before (it has to be a specific form) then they can get stuffed. You can continue to pay the old rent because no valid notice was given.

    It happened to us where they renewed the lease but also increased the rent without giving us notice. So we contested it with consumer affairs, and now they have sent us a proper notice taking in effect 4 months later because of their own slowness.

    They also have been useless in getting the property to minimum standards for us - we've told them multiple times that the bedrooms don't have blinds for the windows and they aren't doing anything about it :(

    • Brilliant. Thank you.

  • +1

    If as you say they sent a notice with $200 less, they will need to reissue the notice and observe the timing required

  • +1

    They will fix the error in the rent when they send you your 60 day notice.

  • What state are you in?

    • NSW

  • +1

    Here's a tip OP, tell your friends you went overseas.

    https://www.ozbargain.com.au/node/924761

    • Saw that. Cringe!

  • +13

    they also quoted the increase which is $200 less than we currently pay.

    Shut up and immediately sign the extension.

  • +2

    rent is dead money get on the house ownership wagon

  • +1

    Didn’t used to be dead money if you invested what you saved by renting - rent used to be much less than mortgage payments and you could safely get 10% plus in first mortgages

    • Also renting let you transitory living in a suburb/area that is very convenient today but unwanted for the future.
      Or getting far more rooms/space than needed …

  • +1

    Assume a typo. "increase" should read "decrease". Easy peasy.

  • -1

    If you have the owners details, contact them directly and let them know.

    • +2

      OP, don't do this.

      • -1

        Why not? I certainly would have preferred my tennants (of 20 years). Letting me know the REA was an ongoing problem. Costs me money, costs the tennant money and the agent makes 20× as much when tennant moves.

        • Because the tennant (OP) will be better off to just start paying the $200 pw lower rent for a while.

          • @tenpercent: So they just put the rent up extra to compensate. Which could cost more in the long run.

            • @tonka: Nah. Old rent was $750. New rent $550. If they later bump it beyond market rates NCAT will deem it excessive and OP will end up just paying market rate anyway. It won't matter that they're trying to make up for a period of cheaper rent. NCAT doesn't care.

              E.g. if OP gets to pay the lower rate for say 8 weeks before REA and landlord figure out the error, then they would need to bump the rent to $850 for the rest of the year in order to just break even versus a no rent change scenario. That's a 13% increase on the old rent.

              E.g. If they wanted to break even versus a $50pw rent increase scenario (which would probably be a reasonable increase) they'd need to bump it to $910pw for the rest of the year. That's a 20% increase on the old rent.

              Considering average rent increases in NSW in the past year have been just over 6%, I doubt a 20% increase or even a 13% increase on the original rent would reflect market rates taking into account the particular features of the property. Therefore NCAT would tell REA and landlord that it's excessive and set a more reasonable rate.

    • +1

      and definitely don't do this at 4am in the morning

  • share the email here with blanked out PII. Just need to make sure it is indeed worded correctly.

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