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More tenants fighting rent increases

Western Plains App

Luke Williams

22 March 2023, 2:40 AM

More tenants fighting rent increases Image: NSW Government.

The Western Plains has had a dramatic rise in the number of people trying to find ways to stop rent increases by landlords. 


Data collated by the Tenants Union of NSW for the Western Plains App showed a jump of more than 150% in the number of calls to its service from our region’s tenants who are trying to challenge rises in their rent. 


In the 2020-21 period, there were 70 calls from our region related to rent - compared to 174 over the 2021-22 period. NSW Tenants Union CEO Leo Ross told the Western Plains App that early indications were that calls have increased again this financial year. 



“The question people ask is whether the landlords can increase the rent,” he said “A landlord cannot pursue an excessive rent increase. The way 'excessive' is determined is by looking at like properties in the area. The problem in many small towns is that there aren’t many properties on the market and so real estate agents are often using an inaccurate or too small of a sample to justify an increase”. 


Ross also clarified that while the relative reasonableness of the increase can be determined by a tribunal “What the tribunal cannot take into account is the capacity to pay or the financial capability of the tenant”. 


The latest SQM Research Weekly Rents Index released in December found that since November 2021 there has been a 12.7% increase in rents for houses and units in the Dubbo to Broken Hill area over the past three years. 


However, rent prices may be slowing – having just increased just 1% in the 12 months from March 2022, and 1% in the last month. 


Tim Mckibbin CEO of the Real Estate Institute of NSW told the Western Plains App the laws of supply and demand mean “The market sets the rent not the landlord, the tenants set the rent, not the landlord and the rental.” 

“What concerns me is that landlords are being demonised by the state government, by they are just responding to market demand”. 


The Tenants Union also saw more calls from tenants about whose responsibility it was to clean mould over recent years which Ross said is likely due to the flooding and wet weather experienced in our region. 


“Tenants have a responsibility to prevent damage. Landlords have a responsibility to keep the property in reasonable repair. There is often a dispute about what caused the mould. Tenants are often told they are not ventilating, but in many situations, this is simply not the case”.    


A “Renters Election”  

Housing is proving to be a substantive issue at the March 25 state election with both parties making pledges to make housing affordable. 


ABOVE: Leo Ross. Image: supplied. 


Tenancy and renter’s rights have also played a significant role in both parties' election campaigns. 


Both major parties have agreed to end “no grounds evictions” – landlords will now have to show “reasonable grounds” to evict, and they have also both committed to allow bonds to be transferred between properties so when a tenant moves properties they don’t have to pay a new bond while their current bond is still unable to be accessed. 


The ALP have said they will create a Rental Commissioner. A move supported by the Tenants Union of NSW “At the moment rental matters are handled by Fair Trading NSW. Because they have such a big portfolio Fair Trading NSW often does not have the expertise needed on complex matters” Ross said. 


The state opposition also says it will shift the decision on whether a tenant can have pets from the landlord to the Rental Commissioner. While the Coalition Government has pledged to reduce the amount of data requested by real estate agents as part of the application process. 


Ross said his organisation supported this “We want to see the application process itself regulated. For instance, it's often a competitive process. But people should be properly assessed on their own merits. People are not judged on whether they should have electricity or not when applying and it should be the same for people applying for houses - people need shelter”. 


Mckibbin from the Real Institute of NSW said the best way to improve housing affordability is to increase housing supply “We need more property its as simple as that.” He said the focus of policymakers should be on easing the costs of property investment rather than restricting landlord rights. 


“40% of what the consumer pays when buying a house is government taxes across all three levels of government,” Mckibbin said “It also takes longer to get approval for a build from a council often takes longer than it takes to build the dwelling.”