Common landlord move that’s totally illegal

QUESTION: I’ve been in the same apartment for nine years and the rent has stayed quite reasonable in that time – it’s in Sydney quite close to the CBD and I pay $500 for a one-bed. Recently, I asked the landlord to fix some issues that have been going on for a while, such as dripping taps, a broken wardrobe door and old bathroom grout that needs filling in. I put in the requests and the landlord came back and said that I could either pay for the repairs myself or the rent would go up to $550 a week. Is it legal for a landlord to make me pay, and can they make a threat to raise my rent every time I ask for repairs? – Tommo, NSW

ANSWER: A landlord cannot increase your rent just because you have asked for repairs.

Rent increases can only occur under certain conditions, depending on the type of lease agreement.

Rent increases under a fixed-term agreement

If you have a fixed-term agreement, and it is for less than two years, your landlord can only increase the rent during the fixed-term period if the agreement stipulates what the increased amount will be, or how the increase will be calculated.

Your landlord does not need to give written notice before the increase can take effect.

It is not permitted for your agreement to say that the increase would be “in line with the market” or similar unclear statements.

If your fixed-term agreement is for two years or more, then your rent can only be increased once in a 12-month period, and the landlord must provide you with at least 60 days’ written notice.

Rent increases under a periodic agreement

A periodic agreement is one where the agreement does not specify a fixed term or the fixed term has ended but is continuing.

On periodic tenancies, your rent can only be increased once in a 12-month period. Your landlord must also provide you at least 60 days’ written notice.

Rent increases if there is no written agreement

If you do not have a written agreement, then your landlord cannot increase the rent during the first six months.

If you disagree with a rent increase

You are entitled to negotiate or object to your rent increase if you think the proposed rent increase is too high or not allowed under the law.

Before the new rent amount starts, you can:

• Negotiate with the landlord

If your landlord is permitted to increase the rent, but you do not agree with the increase, you should contact your landlord and try to negotiate for the rent to remain the same, or for a lesser increase. Your landlord does not have to agree, but if they do, you should request this confirmation in writing.

• Provide notice to leave

If you’re on a fixed-term lease of two years or more, then you can give 21 days’ written notice and vacate before the rent increase starts.

• Apply to the tribunal

You can apply to the New South Wales Civil and Administrative Tribunal if you think the rent increase is excessive. You must apply within 30 days of receiving the notice.

You will be required to prove that the increase is excessive, so you should provide the Tribunal with evidence of rents for comparable properties in the same area, the state of the repair of your property, and any amenities provided.

Repairs and maintenance on the property

In relation to the repairs you have requested, there is a requirement that a rental property must always be fit to live in.

A landlord certainly can’t agree to repairs being performed conditional upon a rent increase.

The repairs you have requested seem quite reasonable. You aren’t asking the landlord to fully renovate the bathroom, just to perform some minor repairs.

Even if you’re not able to reach an agreement with your landlord about them undertaking the repairs, do not stop paying rent – as tempting as that may be. Instead, you should try to negotiate a resolution together.

If you’re still unable to resolve the issue, then you can contact NSW Fair Trading’s tenancy complaints and disputes service, or lodge an application with the Tribunal.

Fair Trading or the Tribunal may order a landlord to undertake repairs, and the Tribunal can order that your rent is paid to the Tribunal until the repairs are completed.

For more information you can contact the Tenants Advice and Advocacy Service at tenants.org.au.

This legal information is general in nature and should not be regarded as specific legal advice or relied upon. Persons requiring particular legal advice should consult a solicitor. If you have a legal question you would like Alison and Jillian to answer, please email stories@news.com.au. Get more from Alison and Jillian on their Facebook page