Based on your responses, your notice of rent increase might be invalid. A rental provider must send you a valid notice if they want to increase your rent. Generally, Consumer Affairs Victoria (CAV) will only decide if the rent is excessive. Read on to understand the different processes.
If CAV has found that the rent is excessive, you can use the report to negotiate with your rental provider. You can use the report’s recommendations to offer an affordable amount which is less than the proposed rent increase.
If your rental provider refuses to negotiate, or your notice might be invalid, you can apply to the Victorian Civil and Administrative Tribunal (VCAT) for an order that the rent increase not be allowed. If you are considering applying to VCAT, we recommend getting legal advice about your options.
You have to apply to VCAT within 30 days of receiving the CAV report. If you do not apply within 30 days, you need to explain to VCAT why it took you longer than 30 days to apply and why the delay has not caused detriment to your rental provider. VCAT will decide whether to allow your application.
VCAT has the power to order that:
- the proposed rent is excessive and for a period of time the rent cannot be higher than a certain amount,
- the rent increase is allowed, and you must pay the new amount from the date the increase comes into effect,
- the rent increase is invalid, and you continue paying your regular rent amount.
A rent increase notice may be invalid because:
- the rental provider increased rent during your fixed term rental agreement but there is nothing in the agreement letting them to do so,
- you already had a rent increase in the last 12 months if your rental agreement started after 19 June 2019 or in the last 6 months if your rental agreement started before 19 June 2019,
- the new rent is excessive,
- the rent increase notice is not in the right form. The rental provider must use the ‘Notice of proposed rent increase’ form from CAV.
- the rent increase notice does not contain the correct information about how the rental provider calculated the increased rent,
- the rental provider did not give you at least 60 days’ notice before the rent increase started.
If the notice is invalid or the proposed rent is too high, you should ask VCAT for an order that the rental provider refund any extra rent that you have already paid.
Any decision made by VCAT must be followed.
If you do not take any further steps, the rent increase will start at the date set out on the notice.