Report highlights challenges renters face
Research finds most methods for setting rents focus on landlords’ rising costs
In recent years, rent increases have become a significant source of concern and uncertainty for Victorian renters. While Victoria’s rental laws and regulations provide renters with significant protections, they are relatively silent on what constitutes a fair rent increase.
A new report led by Consumer Policy Research Centre (CPRC), in partnership with Tenants Victoria, identifies factors currently affecting the practices landlords and property managers use to set rents in Victoria.
The report highlights findings from interviews with Victorian landlords, property managers and real estate industry representatives.
The research found an inconsistent approach to calculating rent increases, with most methods focused on covering landlords’ rising costs. While often based on comparisons with similar properties, these practices lack certainty and rarely consider renters’ circumstances.
Tenants Victoria has long called on the state government to introduce a ‘rent increase fairness formula’ to rein in rent increases. Housing is a human right and renters deserve fair, predictable rents – not a system that leaves so many unable to pay the rent.