Rent is the amount paid by the tenant to the landlord to occupy the rented premises and to use the facilities and services. Rent is payable at the place specified in the agreement or if none is specified, at the rented premises. The rent is payable in the manner, if any, specified in the agreement (s.42).
The RTA does not limit the amount of rent payable by a tenant. However a landlord must not require a tenant to pay more than one month in advance (unless the weekly rent exceeds $350).
Where rent is paid in person, the person receiving the payment must issue a receipt immediately (s.43(1)(a)). Where a tenant pays rent by any other method and requests a receipt at that time, a receipt must be issued within five business days (s.43(1)(b)). The party receiving the payment must sign the receipt (s.43(3)).
If rent is not paid in person and a receipt is not requested, a record of the payment must be kept for 12 months and must be provided to the tenant within five business days of request.
A tenant should never pay the rent in cash unless they are given a receipt.
Where the landlord refuses to issue a receipt the tenant can make a general application to the VCAT under section 452 of the RTA, but should also request Consumer Affairs Victoria to investigate the matter (see: "Advice and contacts", at the end of this chapter for contact details).
The tenant should not refuse to pay rent on account of the landlord's failure to fulfil their duties. If the tenant does not pay their rent they will be at risk of being evicted. Refusing to pay rent may also prejudice any applications to the VCAT for compensation.
It is an offence for the tenant to refuse to pay rent because they intend to regard the bond as rent paid (s.428).
It is only if the tenant refuses (as opposed to where the tenant is unable) to pay rent in lieu of the bond that they can be prosecuted.
For information on this topic see "Notice to Vacate – landlord wants tenant to leave", below.
The landlord must give at least 60 days notice in writing of a proposed rent increase. The notice may only provide for one rent increase and must inform the tenant of their right to apply, within 30 days, to Consumer Affairs Victoria to investigate the rent increase (s.44(3)). Any rent increase notice that does not comply with these requirements is invalid and the tenant does not have to pay the increase.
During a "periodic" agreement a landlord must not increase the rent payable at intervals of less than six months (s.44(4A)) (see: "Periodic tenancy agreement", above).
The landlord cannot increase the rent during the course of a fixed-term tenancy unless the tenancy agreement allows for rent increases during the fixed term (s.44) (see: "Fixed-term tenancy agreement", above).
Tenants should be wary and seek advice before signing a lease with rent increases "built in". If there is a clause allowing rent increases during the fixed term the landlord can increase the rent in accordance with that clause and the RTA.
The prohibition on increasing the rent payable at intervals of less than six months remains (s.44(4A)).
If the tenant believes the proposed rent is excessive they can apply to the Director of Consumer Affairs Victoria to investigate and report as to whether the increase is excessive (s.45(1)). The application to the Director must be made within 30 days of receiving a Rent Increase Notice (s.45(2)).
The tenant can make the application by letter or can use the Request for Repairs Inspection or Rent Assessment form available from Consumer Affairs Victoria. The tenant can provide reasons with the application for why they believe that the rent is excessive. Complaints may be related to the state of repair of the property or if amenities or services provided at the start of the tenancy have been reduced or withdrawn.
An inspector from Consumer Affairs Victoria must carry out the investigation and give a written report about the rent to the tenant and landlord as soon as practicable. The report will state whether or not in the Director’s opinion the rent is excessive. The report must take into account considerations listed in (s.47(3)) of the RTA.
If the Director’s report finds the increase excessive, the tenant may apply to the VCAT for an Order to this effect. This application to the VCAT must be made within 30 days of receiving the inspector's report (s.46). Application by a Tenant to the Victorian Civil and Administrative Tribunal forms are available from Consumer Affairs Victoria and the VCAT (see: "Advice and contacts", at the end of this chapter for contact details).
The application should request an order declaring the rent or proposed rent excessive. A copy of the Director’s report must be attached to the application (r.6.25(1) VCAT Rules). The VCAT will take into account the inspector’s report and the factors of the case (s.47(3)).
The tenant should obtain as much evidence as possible on the matters listed in (s.47(3)) before the VCAT hearing.
If the rent increase comes into effect before the case is heard at the VCAT, the tenant should pay the increased rent until the VCAT has made a decision. If the application is decided in the tenant’s favour, the VCAT can order that the tenant be reimbursed any increased rent that has already been paid. If the tenant does not pay the increased rent they will be in arrears and at risk of eviction.
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RENT :: Last updated: Thu Jul 1st 2010