There is not a limit on how much the rental provider can increase your rent, however the proposed rent should not be excessive.
When considering whether the proposed rent is excessive, you should compare your home with similar properties in your area, thinking about:
- the proposed rent compared to the rent for other similar properties in your area,
- facilities or features of your home, including: the number of bedrooms and bathrooms, whether your home has a backyard, courtyard or balcony, heating and cooling, storage options and accessibility features.
- the general condition and state of repair of your home,
- any work or improvements you have done on your home (with the rental provider’s consent),
- anything the rental provider pays for (e.g. utilities),
- anything extra that you pay for,
- any changes to the property (e.g. condition or facilities) since you started renting or since the last rent increase,
- the number and amount of rent increases in the last 24 months.
The amount of rent you are currently paying or any hardship you are facing are not considered when considering whether the proposed rent is excessive.
You can challenge the rent increase with Consumer Affairs Victoria (CAV) if you think the proposed rent amount is excessive. You must make this request to CAV within 30 days of receiving the rent increase. CAV will then conduct an investigation and provide you and your landlord with a report on whether CAV considers the rent increase is excessive.
