3.1 Rent, Rent Increases and Rent Reductions

Rent

Am I entitled to receipts for rent payments?

The owner/agent must give you a receipt within three days of receiving a rent payment (s33. penalty $1000). The only time the owner/agent doesn't have to give you a receipt is if you pay rent directly into a bank, building society or similar body chosen by the owner (s.33(2)).

The rent receipt must show:

• the date the payment was made
• who paid the rent
• the amount paid
• the rental period covered by the payment; and
• the address of the rented premises.

Rent Increases

How can the owner increase my rent?

You must receive written notice from the owner/agent advising of a rent increase on both periodic and fixed term tenancies. Under a fixed term tenancy, the rent can only be increased if there is a specific clause in your agreement which allows for an increase.

Any rent increase notice must:

• be in writing,
• state the amount of the increase,
• state the day from which the increase becomes payable, and
• provide you with a minimum 60 days notice from the day the notice was given.

How often can the rent be increased?

The owner/agent can not increase the rent more than once every six months (s.30). This applies even if more people move into the premises.

The rent cannot be increased if you have a fixed term tenancy (eg. 12 months) agreement unless:

• the agreement includes a clause which allows for an increase, and
• it has been at least six months since the last increase.

If your tenancy agreement is being renewed on the same property, the owner/agent should not increase the rent on the day of renewal without the correct notice, or without your agreement. However, the owner/agent may refuse to renew the contract if you refuse to pay the new rent.

If the owner/agent does not give the correct notice the rent must stay the same. You can refuse to pay the rent increase until the correct notice is given. You can also refuse if the notice does not include the required information, or the notice is given verbally.

The 60 day notice period begins when the correct notice is issued, not from when incorrect notice was given.

Is there a limit to how much the rent can be increased?

There are no rent control laws in Western Australia. This means there is no limit to how much rent can be increased by the owner. However, there are very limited circumstances where you might be able to argue that the rent is excessive. See the section below.

Rent Reductions

What can I do if I believe the rent is too high?

Under the Residential Tenancies Act (1987) (s.32), you can apply to the Small Disputes Division of the Local Court for a rent reduction or to dispute an attempted rent increase if you believe it is too high.

For your application to be successful you must show that:

1. since you entered into the tenancy there has been a significant reduction in the property or the facilities in the property provided by the owner (for example, the heater doesn't work and the owner won't replace it); or
2. the owner/agent has applied an excessive rent increase in an attempt to force you to move out.

The court will consider other factors when deciding if the rent increase is excessive. It is your responsibility to provide this information to the Court. These include the:

• general level of rent in the area,
• estimated value of the property and chattels (items in the property; eg. furniture),
• general state of repair and condition of the property and chattels,
• outgoings to be paid by the owner (eg. rates),
• the estimated cost of any services provided by the tenant or owner under the agreement.

If you are successful, the Court will order that the rent is excessive. You should apply to the Local Court as soon as a problem arises as, if you are successful, the court order may only be backdated to the date of your application, not when the changes to the rent or the property were made.

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