Rent increases

A lease (officially called a rental agreement) that includes an end date is called a ‘fixed-term’ lease. Most commonly, fixed-term leases are for an initial fixed period of 12 months.

If your lease is for a fixed term, the rent cannot be increased at all during that term, unless the lease includes a rent increase clause, which says how or by how much the rent will be increased.

If your lease includes a rent increase clause

Even if your lease includes a rent increase clause, the rent still cannot be increased more often than the law allows, which is once every 12 months.

From 29 March 2021, if a new fixed-term lease includes a rent increase clause, the lease must also state the amount of the increase – or the method that will be used to figure out the amount – and that it will not be increased by more than that amount.

If you are given a short-term fixed-term lease, which includes a rent increase clause, and you receive a notice of rent increase that will take effect after only one month of being in the property, you should get legal advice. This may be ‘bait advertising’, which is where a rental property is advertised at a lower rate of rent, to get people into the property, and then increased soon after. Tenants Victoria and other organisations can help. See the information on this page about how to get help.

If you do not agree to a rent increase clause before you sign

A valid lease does not need to contain a rent increase clause. It is something that some landlords (officially called rental providers) or agents may decide to include, so it is important to read the lease carefully before you sign it.

Before you sign the lease, if you do not agree to a rent increase clause being included, you can ask for it to be removed or crossed out. If you and the landlord agree to cross out a rent increase clause, you should all sign next to the change to show that everyone has agreed to this.

If the landlord or agent will not remove this clause, it is your decision whether to sign the lease or find a different home to rent. If you are unsure whether you want to sign the lease because of the rent increase clause, seek advice immediately. Tenants Victoria and other organisations can help. See the information on this page about how to get help.

A lease (officially called a rental agreement) that does not have an end date is ‘periodic’ (often called a month-by-month lease). Also, when a fixed-term lease ends, it automatically continues as a periodic (month-by-month) lease.

For a periodic lease that started before 19 June 2019, the rent cannot be increased more than once every 6 months.

For a periodic lease that started on or after 19 June 2019, the rent cannot be increased more than once every 12 months.

The landlord (officially called the rental provider) or agent cannot include anything in the lease (officially called a rental agreement) that makes you responsible for paying an increased amount of rent if you break any of the rules of the lease.

Any term that does this is prohibited (banned). It is an offence to include a prohibited term in a lease. To learn more, see the page on this website about leases (rental agreements).

If your lease includes a prohibited term

If you have a lease that includes a prohibited term, the landlord cannot enforce it. If the landlord refuses to remove it from your lease, you can apply to VCAT, which can order that the term does not apply. For information on applying to VCAT, see our page about going to VCAT.

You can also report an offence to Consumer Affairs Victoria, which can issue an infringement notice (fine) to the landlord or agent if they failed to follow the law.

The landlord (officially called the rental provider) can give you notice of a rent increase at any time, provided they give you at least 90 days written notice using the official Consumer Affairs Victoria form on the Consumer Affairs Victoria website: Notice of proposed rent increase to renter of rented premises [Word].

The rent increase notice must not set a start date less than 12 months after the last rent increase took effect. The only exception is if you have been in the same property since 19 June 2019, where rent cannot be increased at intervals of less than 6 months. The increase must also not come into effect during the fixed-term lease (officially called a rental agreement), unless the current lease specifically allows it (has a rent increase clause).

Only one increase can be listed in each rent increase notice.

The notice of proposed rent increase can be given to you:

• In person (between 8 am and 6 pm)
• By mail, or
• Electronically, if you have given consent to receive notices this way

See our page about starting a tenancy for more information on consenting to have notices sent electronically.

The rent increase notice must include:

• The amount of the rent increase
• The method used to calculate the rent increase – this is only required if the lease (officially called a rental agreement) commenced on or after 29 March 2021
• Details about your right to apply to Consumer Affairs Victoria to have the proposed increase assessed if you think it is too high
• The date the rent increase applies from

If your lease (officially called a rental agreement) began on or after 29 March 2021, when you receive a notice of rent increase it must set out a method of rent increase. While the law does not list or define what methods can and cannot be used, common methods include:

• Consumer Price Index – see the Australian Bureau of Statistics website for the Consumer Price Index. If this is the method used to calculate the rent increase, then the amount of the increase should follow the Consumer Price Index calculation
• Statewide Renting Index – see the Victorian Government website for the Melbourne and regional rental reports
• Comparative market review or analysis

The rent increase amount should match the relevant method of rent increase used in the notice and be clear about how the rent amount was determined.

VCAT has made it clear that a landlord (officially called a rental provider) cannot just say they used a market review to justify a rent increase.

If you receive a rent increase notice and want to challenge it, you can do your own research and collect evidence for Rental Dispute Resolution Victoria (RDRV) or VCAT that shows whether the landlord’s review is accurate and reasonable.

If the landlord (officially called the rental provider) or their agent does not follow these rules, you can challenge the rent increase notice at Rental Dispute Resolution Victoria (RDRV).

If you and the landlord do not reach an agreement through RDRV, you can take the dispute to a formal VCAT hearing. VCAT will look at everyone’s evidence, apply the law and make a final decision.

See the information on this page about how to challenge the rent increase at RDRV.

Note: We do not recommend you ignore a rent increase. We recommend that you pay the increase if the start date of the proposed increase has arrived, even if you want to challenge it at RDRV or VCAT. This is because if VCAT later finds that the rent increase is legally valid, you will have gone into rent arrears (fallen behind in your rent), which can lead to a ‘notice to vacate’. See our pages on overdue rent and notices to vacate and eviction.

If you think the rent increase is too high, you should first apply to Consumer Affairs Victoria to assess it. This service is free.

You must apply in writing within 30 days of receiving the notice of an increase.

There are 2 ways to apply:

• Use the ‘Rent increase investigation’ section on the last page of the official notice of proposed rent increase that the landlord (officially called the rental provider) or agent gave you
• Use the Consumer Affairs Victoria online form: Request for rental assessment

What happens at the assessment

A Consumer Affairs Victoria inspector may contact you to arrange a visit to your home, or they may be able to review the rent increase without visiting you. For the assessment, the inspector will look at:

• The proposed rent compared to the current rent
• Whether the rate of the proposed rent increase is higher than the Consumer Price Index (All Groups Melbourne, quarterly release). For the latest quarterly release, see All groups CPI, annual movement table (%) on the Australian Bureau of Statistics website
• If the proposed increase would make your rent more than it is for similar properties in the area
• Any relevant similarities and differences with similar rental properties in the area, including:
  • Location
  • Facilities or services provided by the landlord
  • Size of land and dwelling
  • State of repair and general condition
  • Number of bedrooms
• What costs and charges you pay and what the landlord pays for things such as electricity and other utilities
• Any facilities or services that you provide rather than the landlord, such as garden maintenance, or appliances and fittings
• Any improvements or modifications you have made to the property, with the landlord’s consent or agreement
• Any change in the rent and condition of the property or facilities since the start of your lease (officially called a rental agreement) and since the last rent increase
• The number of rent increases (if any) in the last 24 months and the amount and timing of each of those increases
• Any valuation of the property
• Whether the landlord or agent has received a VCAT order, an infringement notice from Consumer Affairs Victoria, or any other relevant court order because they breached a duty under Victoria’s rental laws. For a list of landlord duties, see our page on private rentals
• Whether the property is public or community housing

Consumer Price Index

While the Consumer Price Index may be considered when deciding whether a rent increase is excessive, there is no set formula for how much weight it must be given compared with other factors.

The Consumer Price Index amount should be the relevant published Consumer Price Index (All Groups Melbourne, quarterly release) at the time the notice of rent increase was given, not the time of any later hearing. For the latest quarterly release, see All groups CPI, annual movement table (%) on the Australian Bureau of Statistics website.

Prepare for the assessment

During the inspection, you should point out anything that supports your claim that the rent increase is excessive. If the inspector is doing the review without visiting you, you should contact them to give them this information. You may wish to point out:

• The state of repair of the property
• Problems with the location
• The rents for similar properties in your area
• The cost of any goods and services and facilities that you provide rather than the landlord – for example, garden maintenance, or appliances or fittings
• Any improvements or modifications you have made to the property, with the landlord’s consent or agreement
• Any change in the rent and condition of the property or facilities since the start of your lease and since the last rent increase

Rent assessment report

Once the inspector has carried out an investigation, you and the landlord will receive a written report.

If the inspector’s report says that the rent increase is too high, they may try to negotiate a fairer rent with the landlord. You can also do this yourself – see the information on this page about how to negotiate with the landlord.

Even if the inspector’s report says the rent increase is not too high, you can still negotiate directly with the landlord, and you can still apply to Rental Dispute Resolution Victoria (RDRV) to try to reach an agreement. However, it will be more difficult to succeed without the rent assessment report, or if the report says the increase is not too high.

It is worth trying to negotiate with the landlord (officially called the rental provider) about the rent increase.

If you have a Consumer Affairs Victoria rent assessment report that says the increase is too high, or you have a report from a real estate agent about rents in the area, or have done your own research, you can also use this to try to negotiate. If you do come to an agreement, put it in writing, make sure you both sign it, and keep a copy.

If the landlord does not agree to withdraw the notice or reduce the amount of the rent increase, you can apply to Rental Dispute Resolution Victoria (RDRV) to resolve the dispute. If you have a Consumer Affairs Victoria rent assessment report, you can attach it to your RDRV application. Find out more on this page about challenging the rent increase at RDRV.

Even if the landlord is willing to negotiate, it can still be worth applying to RDRV. RDRV gives you the benefit of negotiating with the landlord with an independent mediator present. You can also get your agreement formalised as a VCAT order so it is enforceable. For more about the process of going through RDRV, including tips for drafting agreements, see our page about going to RDRV (Rental Dispute Resolution Victoria).

You can apply to Rental Dispute Resolution Victoria (RDRV) online using myRDRV, or you can submit your application by email, by post or in person at an RDRV office.

If you have a Consumer Affairs Victoria rent assessment report, you should attach it to your application.

Once you have applied to RDRV, you should give your landlord (officially called the rental provider) a copy of your application and any documents or evidence you attached to it.

An RDRV resolution coordinator will review your application and contact you to discuss your options. They may also contact your landlord to understand their side of the dispute.

If the resolution coordinator decides the dispute should progress through RDRV, they will explain the next steps to you. They will also let you know if you need to provide further documents or evidence.

For more on applying to RDRV, see our page about going to RDRV (Rental Dispute Resolution Victoria).

It is important to organise your documents and evidence before discussions with your landlord (officially called the rental provider) at Rental Dispute Resolution Victoria (RDRV).

You may have already attached some documentation to your application. Or you may have applied to RDRV with just your details and some basic information about the dispute. The resolution coordinator will let you know if you need to provide further documents or evidence. Your landlord may also ask you to provide evidence during the RDRV session, and you can ask them to do the same.

The more clearly organised your documents are, the easier and more efficient your negotiations will be, and the more likely the dispute will be resolved.

Your documents and evidence may include:

• Your Consumer Affairs Victoria rent assessment report, if you have one
• Photos or videos showing the condition of the property or problems with the location, including any changes since the start of your lease (officially called a rental agreement) and since the last rent increase
• Reports from real estate agents about rents for similar properties in the area, or your own research
• The cost of any goods or services or facilities that you provide rather than the landlord – for example, garden maintenance, or appliances or fittings
• Details about any improvements or modifications you have made to the property, with the landlord’s consent or agreement
• Documentation showing the number of rent increases (if any) in the last 24 months and the amount of each of those increases
• Evidence of any VCAT orders or court orders the landlord or agent has received for breaching a duty under Victoria’s rental laws, or of any other relevant breaches by the landlord or agent. For a list of landlord duties, see our page on private rentals
• Whether the rate of the increase is higher than the Consumer Price Index (All Groups Melbourne, quarterly release, at the time the rent increase notice was given). For the latest quarterly release, see All groups CPI, annual movement table (%) on the Australian Bureau of Statistics website
• Any valuation of the property

You can copy, scan or take photos, but make sure everything is clear enough to read.

For more on providing documents and evidence at RDRV, see our page about going to RDRV (Rental Dispute Resolution Victoria).

After the resolution coordinator has spoken separately with you and your landlord (officially called the rental provider), they may organise a facilitated discussion through Rental Dispute Resolution Victoria (RDRV), where you can both try to negotiate an agreement.

The facilitated discussion usually takes place by phone, videoconference or email. The resolution coordinator may bring you and your landlord together to talk, or they may act as a go-between, passing on claims, offers and options so you don’t need to speak to each other directly.

If the resolution coordinator believes a more structured, face-to-face meeting might be the best option to resolve the dispute, they may invite you both to a formal mediation session.

Because the resolution coordinator cannot give legal advice, it is important that you understand your legal rights before going into a discussion or mediation session at RDRV. You can also organise for a lawyer or advocate to represent you. Find out more on this page about getting help.

If you reach an agreement at RDRV

If you and your landlord reach an agreement at RDRV, you should put it in writing to make sure everyone follows through on their commitments.

You can ask for your written agreement to be formalised in a consent order issued by VCAT, which is a legal document to confirm an agreement between parties. Or you can write a private settlement agreement, which is a contract between yourselves.

For more on what to do if you reach an agreement, and tips for drafting agreements, see our page about going to RDRV (Rental Dispute Resolution Victoria).

If you do not reach an agreement at RDRV

You do not have to reach agreement at RDRV. If you and your landlord cannot resolve all the issues through RDRV, or if either side does not wish to continue with RDRV, you can ask the resolution coordinator to refer the dispute to VCAT for a formal hearing.

VCAT will let you know the time, date and location of the hearing. The hearing may take place in person, by phone (teleconference) or by videoconference.

Hearings about rent increases are usually held within 4 weeks of you applying to Rental Dispute Resolution Victoria (RDRV).

If you need to change the date or format of the hearing

If you cannot attend the hearing, you may be able to change the date. Call VCAT on 1300 018 228 or use VCAT’s application form to change a hearing date.

If you want to request a different format for the hearing – for example, if the hearing is going to be by video but you would prefer to attend by phone – you can call VCAT on 1300 018 228 or email renting@courts.vic.gov.au.

You can also let the resolution coordinator know about any dates you are unavailable or your preferred format for the hearing, or you can note these in your RDRV application. However, it will always be up to VCAT to approve these requests.

Before the VCAT hearing, you and your landlord (officially called the rental provider) can continue trying to reach an agreement, even outside of Rental Dispute Resolution Victoria (RDRV).

If you reach an agreement, you can ask the resolution coordinator to organise for it to be formalised in a consent order issued by VCAT, which is a legal document to confirm an agreement between parties. Or you can write a private settlement agreement, which is a contract between yourselves, and ask the resolution coordinator to withdraw the VCAT case. Either way, you will not need to attend a hearing.

Find out more about what to do if you reach an agreement on our page on going to RDRV (Rental Dispute Resolution Victoria).

If you and your landlord (officially called the rental provider) tried to resolve the dispute at Rental Dispute Resolution Victoria (RDRV) before going to VCAT, anything that was said or done at RDRV cannot be used as evidence at VCAT unless everyone agrees in writing. For example, if the landlord admits during an RDRV discussion that the rent increase is too high, or if you agree that there are properties for similar rents in the area, these statements cannot be used as evidence at VCAT.

If you submitted documents, photos or videos as part of your evidence for RDRV, you will not need to submit these again to VCAT. However, you may need to provide further documents or evidence for the hearing.

Before the hearing, you should make sure the landlord and VCAT have a copy of any documents or evidence you will use at the hearing. In some situations, the resolution coordinator may help to ensure your documents are ready for the hearing. See more on this page about the types of documents and evidence you might use to support your claim. The VCAT website also has tips on preparing evidence.

The landlord must also make sure you have a copy of any documents or evidence they will use at the hearing. If they present evidence at the hearing that you have not seen, you can ask VCAT to reschedule (adjourn) the hearing so you have time to look at the new evidence. While it may not always be necessary to adjourn the hearing, it can be helpful in more complex disputes.

To prepare for the hearing, get all your evidence together and make a few brief notes outlining what you want to say. Being organised is the key to presenting a good case. For more information on getting ready, see our page about going to VCAT.

Protecting your personal information

In some circumstances, it may be necessary to share personal information relating to issues like trauma, family violence or your mental or physical health, or that of another household member. If this applies to you, you can raise this with VCAT and ask that the information be restricted under the Open Courts Act 2013 (Vic). This usually means that your personal information will be anonymous and not made public. It will be up to VCAT to decide if this is appropriate.

If you have any concerns about providing personal information to VCAT after going through RDRV, raise them with the resolution coordinator.

At VCAT the person who hears and decides on your case is called a member. The VCAT member will listen to each side, review any evidence and make a decision that resolves the dispute.

What VCAT will consider when deciding if the rent increase notice is valid

When deciding whether the rent increase notice is legally valid, the VCAT member will check:

• If the notice was in the correct form
• If it was given to you the right way
• If it gave you at least 90 days notice before the rent increase takes effect
• Whether the landlord (officially called the rental provider) used a recognised and lawful method to calculate the rent increase (if applicable)
• Whether the notice correctly states the amount of rent you currently pay and, if based on the chosen method (when applicable), accurately states the increased amount

What VCAT will consider when deciding if the rent increase is too high

When looking at whether the rent increase is too high, the VCAT member will look at:

• The proposed rent compared to the current rent
• Whether the rate of the proposed rent increase is higher than the Consumer Price Index (All Groups Melbourne, quarterly release). For the latest quarterly release, see All groups CPI, annual movement table (%)on the Australian Bureau of Statistics website
• If the proposed increase would make your rent more than it is for similar properties in the area
• Any relevant similarities and differences with similar rental properties in the area, including:
  • Location
  • Facilities or services provided by the landlord
  • Size of land and dwelling
  • State of repair and general condition
  • Number of bedrooms
• What costs and charges you pay and what the landlord pays for things such as electricity and other utilities
• Any facilities or services that you provide rather than the landlord, such as garden maintenance, or appliances or fittings
• Any improvements or modifications you have made to the property, with the landlord’s consent or agreement
• Any change in the rent and condition of the property or facilities since the start of your lease (officially called a rental agreement) and since the last rent increase
• The number of rent increases (if any) in the last 24 months and the amount and timing of each of those increases
• Any valuation of the property
• Whether the landlord or agent has received a VCAT order, an infringement notice from Consumer Affairs Victoria, or any other relevant court order because they breached a duty under Victoria’s rental laws. For a list of landlord duties, see our page on private rentals
• Whether the property is public or community housing

Consumer Price Index

While the Consumer Price Index may be considered when deciding whether a rent increase is excessive, there is no set formula for how much weight it must be given compared with other factors.

The Consumer Price Index amount should be the relevant published Consumer Price Index (All Groups Melbourne, quarterly release) at the time the notice of rent increase was given, not the time of any later hearing. For the latest quarterly release, see All groups CPI, annual movement table (%) on the Australian Bureau of Statistics website.

What happens if you don’t have a Consumer Affairs Victoria rent assessment report

If you don’t have a Consumer Affairs Victoria rent assessment report, or you did not request one on time, the VCAT member will first decide whether you have a reasonable excuse for not getting a report or for the delay in asking for one.

If they accept that you have a reasonable excuse, you will need to show you own evidence at the hearing that the rent increase is excessive, and the VCAT member will make a decision based on that.

If they do not accept your excuse for not having a Consumer Affairs Victoria rent assessment report, this could mean your rent goes up under a legally valid notice. For this reason, we strongly recommended you request the report and do so on time.

The VCAT member usually makes a decision, called an order, on the day of the hearing. The member will give the order verbally on the day and in writing either on the day or soon afterwards. If you don’t understand the order on the day, ask the member to explain it to you again.

If the VCAT member finds that the notice of rent increase is invalid, they will order that the rent increase cannot go ahead, and the landlord (officially called the rental provider) will need to issue a new notice to restart the process.

If you have already paid extra rent under an invalid notice, the VCAT member may also order the landlord to refund you any overpaid amount.

If the VCAT member finds that the notice of rent increase is valid, they will then decide whether the amount of the increase is excessive or not.

If the VCAT member decides the rent increase is excessive and sets the rent to a lower amount or refuses to allow the increase, make sure you ask them to order the landlord to refund any rent that you have overpaid.

If the VCAT member decides that the amount of the rent increase is fair, and you want to stay at the property, you need to pay the increase from the start date listed on the original notice, if you have not done so already.

If the start date of the rent increase has arrived, you should pay the extra amount, even if you are going to challenge it.

If you do not pay the proposed increase, and VCAT later decides that the increase is valid and/or not too high, you may end up in ‘rent arrears’ (overdue in your rent payments), which can lead to a ‘notice to vacate’. See our pages on overdue rent and notices to vacate and eviction.

If you are considering ending your lease (officially called a rental agreement) because of the increase, we recommend you seek advice first. Tenants Victoria and other organisations can help. See the information on this page about how to get help. See also our page on ending or breaking your lease.

You can also consider Tenants Victoria’s free financial counselling service.

If you need support to respond to a rent increase, help is available.

There are step-by-step guides, self-help tools and other resources to assist you with rent increases.

The Residential Tenancies Act 1997 is Victoria’s main law for renting. It describes the rights and duties of renters and landlords in numbered sections.

The sections in this list relate to rent increases in private rentals. Click on a link to see more about the section. Note: Depending on whether your lease (officially called a rental agreement) was signed before 2021 (or before 2019), certain sections may not apply.

• Section 44 – Rent increases
• Section 45 – Renter may complain to Consumer Affairs Victoria about excessive rent
• Section 46 – Application to VCAT about excessive rent
• Section 47 – What can VCAT order?
• Section 48 – VCAT can order refund of rent
• Section 452 – General applications to VCAT
• Section 506 – Service of documents

The Residential Tenancies Regulations 2021 provide more detail and definitions, and specify updates to the Residential Tenancies Act.