Guide
Getting assistance for rent arrears
Guidance on how to support a client, and risk of eviction, where they have fallen behind in the rent.
Rent increases
Notice of rent increase
If your client has received a notice of a rent increase, they have options to ensure any increase in rent is valid and fair.
The renter can receive a free rental assessment from Consumer Affairs Victoria (CAV) and negotiate with the rental provider. The renter can also challenge the increase at Rental Dispute Resolution Victoria (RDRV) and the Victorian Civil and Administrative Tribunal (VCAT).
Understanding rent increases
How often can rent be increased?
A rental provider cannot increase the rent more often than the law allows. Rent can only be increased once every 12 months for the following types of tenancy agreements:
- a fixed-term lease agreement that started after 19 June 2019.
- a periodic lease agreement (also known as month-to-month lease) that started after 19 June 2019. This is the case even if the lease has been month-to-month for many years.
- a fixed term lease agreement that has a fixed term of more than 5 years. These are called long-term rental agreements, and they are not very common. Rent must not be increased more than once every 12 months and only if the agreement says that the rent can be increased.
If you are on a periodic (month-to-month) lease that started before 19 June 2019, the rent can be increased once every 6 months.
How can rent be increased?
A rental provider can only increase rent by providing a renter with a notice of proposed rent increase form from CAV. A rental provider cannot increase rent verbally, by text message, or in an email without the correct form.
How much can rent be increased by?
The law does not say how much the rent can be increased by. The law requires the rental provider to provide detail of how the rent increase was calculated and the increase cannot be ‘excessive’.
Can rent be increased during the fixed term?
During a fixed term lease agreement, the rental provider can only increase the rent if it’s written in the agreement that they are allowed to do so. If the lease agreement allows for a rent increase, it must also state how the increase will be calculated. The rental provider must still only increase the rent once every 12 months.
If the rent increase is not stated in the fixed-term agreement, the rent increase can only be issued at the end of that agreement or as a part of a new agreement. If this is the case, the rental provider must still give you a notice of rent increase.
My client has received a notice of rent increase – is it valid?
Rental providers can only increase rent if they issue valid rent increase notices.
Dear Landlord, Justice Connect’s free self-help tool for renters, can help determine if a notice of rent increase is invalid.
There are many reasons why a rent increase notice may not be valid, including:
- the rental provider did not give the renter at least 90 days’ notice before the rent increase is set to begin.
- the rental provider has proposed increasing the rent more often than the law allows.
- the rental provider issues a rent increase notice during a fixed term rental agreement but the fixed term agreement does not have a clause that allows the rental provider to increase the rent.
- the rent increase notice is not in the right form. The rental provider must use the CAV ‘Notice of proposed rent increase’ form.
- the new rent is ‘excessive’. Whether the new rent is excessive will depend on how the proposed rent increase compares with similar properties in the area, taking into account the facilities and features in the property, and the condition and state of repair of the property.
- the rent increase notice does not contain sufficient information about how the rental provider calculated the increased rent. Rent increase notices may be invalid if they simply refer to ‘Consumer Price Index’, ‘market review’, an ‘increase by a fixed percentage’ or an ‘increase by $20 per week’, but do not show details of the calculation.
If it appears your client’s notice of rent increase is not valid, speak to a lawyer about the best strategy to assist them.
My client wants to challenge the notice of rent increase
CAV rental report
If the renter believes the rent increase is excessive, they can request a free rental assessment from CAV within 30 days of receiving a rent increase notice. We recommend that a renter requests a rental assessment.
CAV will undertake a rental assessment of the property. This may involve CAV inspecting the property. Following the rental assessment, CAV will send the renter and the rental provider a written report with the outcome of their assessment.
The CAV rental report will normally state if CAV considers the rent increase to be excessive.
If a renter wants to challenge the notice of rent increase more than 30 days after receiving it, we recommend they seek legal advice.
Negotiating the increase with a rental provider
A renter may also choose to negotiate the rent increase with the rental provider.
Dear Landlord can draft a letter from a renter to a rental provider disputing or negotiating a rental increase based on:
- whether or not the notice appears to be valid;
- the CAV rental report; and
- whether the renter can afford to pay the increased rent.
- Note however a renters’ inability to afford the rental increase will not be a reason to challenge the validity of the rent increase.
Rental providers may decide to reduce a rent increase, or withdraw a rent increase notice in negotiation with the renter.
What if my client wants to challenge the increase?
If the rental provider doesn’t negotiate, your client should apply to the Residential Dispute Resolution Victoria (RDRV).
Your client may find it useful to apply to RDRV where:
- the rental provider does not want to negotiate or withdraw a rent increase notice. This can happen even if a CAV rental report says the rent increase is excessive.
- the renter does not agree with the CAV rental report.
- the notice is invalid for reasons other than the rent being excessive. For instance, even if the rent increase is not excessive, your client can still raise at RDRV or VCAT that the notice of proposed rent increase is invalid because the rental provider did not give them at least 90 days’ notice.
1. RDRV
Your client can apply to RDRV to help resolve the disputes relating to excessive rental increases. They must apply to RDRV within 30 days of receiving the CAV rental report. If your client does not apply within 30 days, it is likely that RDRV will need permission from VCAT to consider your client’s application.
RDRV process is as follows:
- Your client makes an application to RDRV, lodged through the myRDRV portal
- A resolution coordinator will make initial contact with your client, assess the case, and determine next steps.
- The resolution coordinator will contact the rental provider and/or their real estate agent.
- The resolution coordinator will facilitate discussions or a mediation between your client and the rental provider to try to resolve the matter.
- If the matter is resolved, RDRV can refer it to VCAT if VCAT Orders are required. Otherwise, a private agreement can be reached without a need for VCAT orders.
- If the matter is not resolved, it may be referred for a VCAT hearing.
If the renter has concerns regarding family violence, they can apply using this form, instead of the myRDRV portal.
If your client applies to VCAT without first applying to RDRV, their matter may be referred to RDRV unless a reason (e.g. family violence) is set out that makes their matter inappropriate for RDRV.
2. VCAT
If the rent increase dispute is not resolved at RDRV, it can be referred to VCAT for a hearing.
If RDRV refers the matter to VCAT, your client doesn’t need to make a new application. However, an application fee will be payable unless your client is eligible for a fee waiver.
Your client can also ask the RDRV resolution coordinator to skip RDRV and go straight to VCAT. If your client considers that the actual notice of rent increase is invalid, it may be beneficial to have this determined by VCAT unless your client wants to negotiate with the rental provider.
VCAT can make the following orders about a rent increase:
- the proposed rent increase is excessive, and the rent cannot be higher than a certain amount for a period of time,
- the rent increase is allowed, and the renter must pay the new amount from the date the increase comes into effect,
- the rent increase is invalid, for example because it does not include the required information about how the rent increase was calculated, and
- the rental provider must refund extra rent that the renter has already paid.
Should my client keep paying the proposed rent increase?
If your client applies to RDRV or VCAT for a decision on the proposed rent increase, but that decision is not made before the proposed increase is scheduled to begin, your client can:
- choose to pay the rental increase and be refunded the extra rent they did not need to pay if successful at RDRV or VCAT. The risk with this approach is seeking refund of the extra rent paid.
- choose not to pay the rental increase on the grounds they are challenging the increase. The risk with this option is that if VCAT finds the increase to be valid, the renter will be in rent arrears for the difference in rent paid with the increased amount and the rental provider may try to evict them.
For more information, please see the Notices to Vacate page on the Workers Resource Hub. If your client’s proposed rent increase is due to commence before their matter is resolved, your client should get legal advice to help them decide which option they take.
Where can my client get more help?
The following services might be able to provide advice or assistance if your client needs help with a rent increase notice:
- Victoria Legal Aid: Legal Help can give advice over the phone, or via an online chat service.
- Tenants Victoria: Tenants Victoria offers 30-min secondary consultations for workers. You can book a call through their website.
- Community Legal Centre (CLC): Your client’s local CLC might be able to provide some advice. Find your client’s local CLC.
Our free self-help tool, Dear Landlord, provides personalised legal information, practical guidance, and support for Victorian renters to understand their options and negotiate with their rental provider if they have received a rent increase notice.
The content on the Workers’ Resource Hub is legal information for general guidance and not legal advice. The content on this webpage was last updated in May 2026. See full disclaimer and copyright notice.
