Consumer Protection has reported that with a severe lack of rental homes in the State, landlords may be asking their tenants to pay more to remain in the same property.
However, the Commissioner for Consumer Protection, Trish Blake said there were strict rules surrounding how often increases in rent were allowed.
“They can occur only after the first six months of a new tenancy agreement and on a half-yearly basis thereafter in both fixed-term and periodic leases,” Ms Blake said.
“Tenants in financial difficulty who miss (or expect to miss) a rental payment are urged to explain the situation to their landlord or property manager as soon as possible.”
She said a landlord might agree to a rent reduction for a period of time, waive a payment, or agree to defer payment over a longer timeframe.
“While market forces generally determine rental prices, if a tenant believes what they’re paying is too high, they should try negotiating with the landlord before applying to the Magistrates Court requesting a reduction, or to argue against a proposed increase,” Ms Blake said.
“The court will consider a range of factors, including whether the rent is comparable to similar properties nearby and what the property costs the landlord in upkeep.”
She said the cost of services and contents provided would also be taken into account, along with the property’s general condition and whether the rent was simply being raised to force the tenant out.
“When it comes to securing a new property, some prospective tenants may offer more than the advertised price in a practice known as ‘rent bidding’,” Ms Blake said.
“While there is no current legislation relating to rent bidding, Consumer Protection can investigate if there is evidence that a landlord or agent has advertised a rental property for a set price, but subsequently insisted that prospective tenants pay more than what was advertised to secure the home.”
