How landlords are STILL raising rent prices despite the property market’s dramatic decline

The great rental rip off: How landlords are STILL raising prices despite a plunging property market – and why there’s almost nothing tenants can do to stop them

  • As the property market declines landlords continue to raise the price of rent
  • Hobart recorded the sharpest increase but Sydney remains most expensive 
  • Property experts said renters had to know their rights and avoid being ripped off 

The cost of renting in Australia is steadily rising despite the property market’s downward spiral.      

A new report, published by rent.com.au, reveals every state and every major city, with the exception of Brisbane and Perth, recorded an increase in rental prices for February. 

The most significant rise was in Hobart which saw a 4.2 per cent hike in the cost of renting, going from a median price of $365 to $450. 

A new report into the cost of renting in Australia has been released and indicates that while the housing market crashes rent is still increasing with Hobart (pictured) the worst hit

The report, published by rent.com.au , outlines how every state and every major city with the exception of Brisbane and Perth recorded an increase in rental prices for February

The report, published by rent.com.au , outlines how every state and every major city with the exception of Brisbane and Perth recorded an increase in rental prices for February

‘Nationally, there was a 2.2% rise in apartment values in February, which was driven upward by movement in Sydney (3.8%), Melbourne (2.3%), Adelaide (1.6%), Hobart (4.2%), Darwin (2.9%) and Canberra (3.3%),’ the report stated. 

Sydney has remained the most expensive city to live for renters.

Rent.com.au CEO Greg Bader said rental properties were staying on the market for longer. 

‘Some health leasing activity coming over from the January/February rush has increased demand, so renters will have needed to act fast to secure their rental of choice,’ he said. 

‘This is good news – it shows landlords are taking heed of advice from their property managers and rental data to price their properties competitively from the start.’ 

Housing advocate at consumer group Choice, Patrick Veyret, told  news.com.au landlords were taking advantage of renters who are unwilling to move house. 

He said landlords and real estate agents understand the costs associated with moving, such as removalist fees and money for bond.

‘They’re likely to often increase the rent and know that people who rent will just accept it because they don’t really have much bargaining power in this consumer arrangement,’ he said.   

'Nationally, there was a 2.2% rise in apartment values in February, which was driven upward by movement in Sydney (3.8%), Melbourne (2.3%), Adelaide (1.6%), Hobart (4.2%), Darwin (2.9%) and Canberra (3.3%),' the report stated

‘Nationally, there was a 2.2% rise in apartment values in February, which was driven upward by movement in Sydney (3.8%), Melbourne (2.3%), Adelaide (1.6%), Hobart (4.2%), Darwin (2.9%) and Canberra (3.3%),’ the report stated

Mr Veyret is now leading calls for new policies to protect renters from ‘excessive or unreasonable rent increases’. 

As it stands it is on the renter to take their case to a tribunal if they feel the rental increase is excessive or unfair. 

Mr Veyret would like to see this reversed and have landlords argue why rent should be increased.  

He also advised renters to be aware that with the down turn in the property market they are in a better position than at other time to negotiate a fare rent price rise to avoid being ripped off. 

‘More people are putting houses on the market than selling them, and investors seem to be leaving the market, so as a tenant I think you can do pretty well if you negotiate,’ he said. 

Housing expert advised renters to be aware that with the down turn in the market they are in a better position than at other time to negotiate a fare rent price rise to avoid being ripped off

Housing expert advised renters to be aware that with the down turn in the market they are in a better position than at other time to negotiate a fare rent price rise to avoid being ripped off

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