How to Deal with Rent Increases In QLD

Step 1 – Know Your Rights

The Residential Tenancies and Rooming Accommodation Act 2008 outlines the rights you have as a tenant when renting in QLD.

In Fixed Term Agreements the rent cannot be increased unless it is stated within the tenancy agreement and;
- The agreement states the new amount (or how it will be worked out)
- The landlord/rental provider gives the tenant at least 2 months’ notice in writing
- It has been at least 6 months since the tenancy started or since the last increase
- Landlords/rental providers must also give the tenant separate written notice of the increase. It does not automatically come into effect because it is in the agreement. The notice should include the increased amount and the day it takes effect.

In Periodic Term Agreements the rent can be increased if,
- The landlord/rental provider gives the tenant at least 2 months’ notice in writing, and
- It has been at least 6 months since the tenancy started or since the last increase

In New Agreements the landlord/rental provider and tenant can agree to a rent increase at the end of a fixed-term agreement by entering into a new agreement, however, it must be at least 6 months since the last increase. If a new agreement is not signed it becomes a periodic agreement and the same rules apply as a periodic agreement.

NOTE: There is no need to serve a new notice of the rent increase if a new agreement is started.

Excessive Rent Increases, if you think the suggested rental increase is excessive, your options include;
- Negotiation with the rental provider/landlord

TIP: see the below steps to find out if your rental increase is fair by Rent Rabbit 😊

Apply to the RTAs dispute resolution service for an order that the suggested rent increase is excessive. IMPORTANT: You must apply within 30-days of getting a rent increase notice and before the agreement ends if it is a fixed-term agreement.

Rent Increases for rooming accommodation are different, more information can be found here.

Step 2 – Steps to finding out if your rental increase is fair

Log in to your www.rentrabbit.com.au account
Select “Dashboard” from your drop-down menu
Select the “Suburb Trends” option from your taskbar
Type in your Suburb name (in this example we have used Ridgehaven)
Ascertain your suburbs % increase

Step 3 – Calculate your suburb’s median % rent increase

Using Ridgehaven we will calculate its median % rent increase
- In this example, in the last 12 months, the median house rent when from $380 to $410.
  - $410 divided by $380 = 1.0789
  - (1.0789 minus 1) times by 100 = 7.89%
  - Therefore, the median house rent in Ridgehaven went up 7.89%
Now let’s calculate your property’s value (if you were based in Ridgehaven, remember to always use your suburb in part 1).
- Your landlord is requesting an increase in rent from $400 p/w to $460 p/w.
- $460 / $400 = 15% increase (therefore your landlord’s increase is over 7% more than the current market data suggests)
- What the suburb data is showing is that for a $400 p/w property the increase should be:
  - $400 * 0.079 = $31.60 increase
  - $400 + $31.60 = $431.60
- We can see from this example the increase should be roughly from $400 p/w to $430 p/w

Step 4 – How to reply to your landlord/rental provider to propose a revised increase

Here is a draft response

“Hi {insert name of landlord or agent},

I’ve recently received notification of a proposed increase in rent from {$X} to {$X} per week. The suggested price increase is too high, the market in our area over the last 12 months suggests the median rate has in fact {dropped or risen slightly} to {X %}.

It would be great if we could discuss terms and find something we are both happy with. I enjoy living here and I am a good tenant, having kept the property in excellent condition.

To help with the landlord’s decision, below is recent market activity demonstrating a {house/unit} median increase in {Insert your suburb name} of {X%} from 12 months ago. We’d like to negotiate a 12-month fixed lease for {$X} considering the market rents for comparable properties.

{Insert median house/unit data from your suburb search}

In addition, it’s likely if we were to relocate that the owner would perhaps be up for a re-letting fee ($800-$1500), potential loss of rent if it was vacant and unknown quality of tenants.

Thank you,“