Rent increases are a growing concern for tenants across Australia, especially as the cost of living continues to rise. But what happens when your landlord raises the rent while the property you are living in is poorly maintained? Under Property & Leasing Law, tenants do have rights—but refusing a rent increase is not always straightforward.

Understanding your legal position is essential before making any decisions.

What Does Property & Leasing Law Say About Rent Increases?

In Australia, rent increases are regulated at the state and territory level. This means the rules can differ depending on where you live. However, a common principle under Property & Leasing Law is that landlords must follow proper procedures when increasing rent.

Generally, landlords must:

• Provide written notice (usually 60 days)
• Ensure the increase is not excessive compared to market rates
• Follow the terms of the tenancy agreement

Authorities such as NSW Fair Trading and Consumer Affairs Victoria oversee these regulations and provide guidance for tenants.

Can Poor Property Conditions Affect Rent Increases?

This is where things get more nuanced.

While Property & Leasing Law does not automatically allow tenants to refuse a rent increase simply because the property is in poor condition, the condition of the property can be used as grounds to challenge the increase.

If your rental property has issues such as:

• Mould or damp
• Broken appliances
• Structural damage
• Pest infestations
• Unsafe living conditions

You may argue that the rent increase is unreasonable or excessive.

When Can You Challenge a Rent Increase?

Instead of outright refusing to pay, tenants can formally dispute the increase through a tribunal or tenancy authority. This is often a more effective and legally sound approach.

For example:

• In NSW, tenants can apply to the NSW Civil and Administrative Tribunal (NCAT)
• In Victoria, disputes go through the Victorian Civil and Administrative Tribunal (VCAT)

Tribunals will consider:

• The condition of the property
• Comparable rental prices in the area
• Whether repairs have been ignored
• The timing and frequency of increases

If the property is significantly below standard, the tribunal may rule the increase as excessive.

Your Rights to Repairs and Maintenance

Under Property & Leasing Law, landlords have a legal obligation to ensure rental properties are:

• Safe
• Clean
• Fit to live in

If your property is in poor condition, you should:

• Notify the landlord or agent in writing
• Request repairs within a reasonable timeframe
• Keep records (photos, emails, reports)

Failure to maintain the property could strengthen your case against a rent increase.

Should You Refuse to Pay the Increased Rent?

Flatly refusing to pay a rent increase can be risky.

If you ignore a valid rent increase notice, you may:

• Fall into rental arrears
• Receive a breach notice
• Risk eviction

Instead, a better approach is to:

• Continue paying your current rent
• Formally dispute the increase
• Seek legal advice if necessary

This ensures you remain compliant while asserting your rights under Property & Leasing Law.

Practical Steps You Can Take

If you believe your rent increase is unfair due to poor property conditions, here’s what you can do:

Gather EvidenceDocument all issues with the property—photos, videos, and written complaints.

Communicate ClearlyWrite to your landlord explaining why the increase is unreasonable.

Compare Market RatesResearch similar properties in your area to support your argument.

Contact AuthoritiesReach out to organisations like Tenants Union of NSW for advice.

Apply to a TribunalIf needed, lodge a formal dispute.

Suggested External Links:

• Australian Government
• NSW Land Registry Services
• Australian Taxation Office (ATO)
• Consumer Affairs Victoria
• Queensland Titles Registry

It’s important to recognise that rent increases are often influenced by broader market trends. Even if your property is not in perfect condition, landlords may justify increases based on demand.

However, under Property & Leasing Law, the increase must still be fair and reasonable—not simply opportunistic.

If you’re facing a rent increase in a poorly maintained property, don’t navigate it alone. Understand your rights under Property & Leasing Law and take informed action.

Speak to a tenancy expert or legal professional. Contact New South Lawyers today to protect your rights and ensure you’re not paying more than you should.