I can see tenants trying to challenge “excessive” increases in rentals, but since the yardstick is generally the level of rents for similar properties in that area – not the amount of the increase, or whether or not they can afford it – and they have to do it within 30 days, the only advantage may be that they delay eviction until they’ve had a hearing at the Tribunal.
The risk of them then getting no positive recommendation or even being named on a tenancy “blacklist” may be too severe for most tenants to contemplate. This is what a Tenants Union factsheet says on the issue:
If the Tribunal finds that a rent increase excessive, it will make an excessive rent order. The order will specify:
- the amount that the rent must not exceed
- the day from which this maximum rent applies – for a period of up to 12 months
When deciding if a rent increase is excessive, the Tribunal will consider:
- rents for similar premises in the same or a similar area (‘general market level of rents’)
- the landlord’s outgoings under the tenancy agreement
- any fittings, appliances or other goods, services or facilities provided with the premises
- the state of repair of the premises
- the accommodation and amenities provided in the premises
- when the last increase was
- any work you have done to the premises
- any other matter it considers relevant
The Tribunal will not consider your income or whether you can afford the increase.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.