Market Rent Reviews and Disputes

Market rent is the amount a property would reasonably rent for in the current market, considering its condition, location, size, and amenities. It's not simply what a landlord wants to charge, but what tenants would actually pay for similar properties in the same area.

The Tenancy Tribunal considers several factors when determining market rent: the property's condition and age, its location and proximity to amenities, the number of bedrooms and living spaces, any special features like garages or gardens, and recent rental prices for comparable properties. They also consider any issues that might reduce the property's value, such as needed repairs, dampness problems, or lack of insulation.

Landlords cannot increase rent simply because they want more income or because they've made improvements that tenants didn't request. Any increase must be justified by genuine market conditions and the property's actual rental value compared to similar properties.

You should consider challenging a rent increase if it seems significantly higher than what similar properties in your area are renting for, if it doesn't reflect your property's actual condition or amenities, or if the increase is much larger than typical market movements in your area.

Common situations that warrant challenge include rent increases that are 20% or more above comparable properties, increases that ignore significant property issues like dampness or needed repairs, or increases that don't account for the property's age or condition compared to newer rentals being advertised.

Before challenging, research current rental listings for similar properties in your neighbourhood. Look for properties with the same number of bedrooms, similar condition, and comparable amenities. If your proposed new rent is substantially higher than these comparables, you likely have grounds for a market rent review.

Remember that you must act within 28 days of receiving the rent increase notice. Don't assume the increase is fair just because your landlord says it reflects market rates - do your own research and consider seeking legal advice if you're unsure.

Strong evidence is crucial for a successful market rent challenge. Start by collecting rental listings for similar properties in your area, focusing on properties with the same number of bedrooms, similar age and condition, and comparable amenities like parking or outdoor space.

Document your property's condition thoroughly with photographs, noting any issues that might affect its rental value such as dampness, needed repairs, outdated fixtures, or lack of insulation. Keep records of any maintenance requests you've made and how they were handled, as ongoing issues can support arguments for lower market rent.

Contact local real estate agents for their assessment of your property's rental value. Many agents will provide informal opinions, and some may provide written assessments that can be valuable evidence at the Tribunal. Property management companies can also provide insights into local rental markets.

Collect evidence over several weeks if possible, as rental markets can fluctuate. Screenshot online listings with dates, and keep records of how long similar properties stay on the market, as this indicates demand and appropriate pricing levels.

To apply for a market rent review, you must file an application with the Tenancy Tribunal within 28 days of receiving your rent increase notice. The application requires specific forms and a filing fee, and you must serve copies on your landlord according to Tribunal rules.

Your application should clearly state what you believe the market rent should be, based on your research of comparable properties. Include all your evidence with the application, including photos of your property, rental listings for similar properties, and any professional assessments you've obtained.

The Tribunal will schedule a hearing where both you and your landlord can present evidence and arguments. Prepare for the hearing by organising your evidence clearly, practicing your presentation, and understanding the key points you want to make about why the proposed rent exceeds market rates.

Consider whether you want legal representation for the hearing. While you can represent yourself, tenancy lawyers understand how to present evidence effectively and can help ensure you don't miss important legal arguments that could strengthen your case.

At the hearing, both you and your landlord will have the opportunity to present evidence about what the market rent should be. The Tribunal adjudicator will ask questions and may request additional information about comparable properties or your property's condition.

Present your evidence systematically, starting with comparable rental properties and explaining why they're similar to yours. Address any differences between your property and the comparables, such as condition issues, age, or missing amenities that might justify a lower rent.

Your landlord will present their case for the rent increase, likely including their own comparable properties and arguments about your property's value. Be prepared to respond to their evidence and point out any differences between their comparables and your property that might affect rental value.

The Tribunal may ask detailed questions about property conditions, local rental markets, and the specific factors that affect your property's rental value. Answer honestly and refer to your evidence to support your responses.

The Tribunal can make several different decisions about your market rent application. They may confirm your landlord's proposed rent increase if they find it reflects genuine market rates, reduce the rent increase to a lower amount that better reflects market conditions, or in rare cases, set a rent lower than you're currently paying if they find you've been overpaying.

If the Tribunal sets a rent lower than your landlord proposed, you only need to pay the Tribunal-determined amount from the date the increase was supposed to take effect. If they confirm a higher rent than you're currently paying, you'll need to pay the difference as back-rent.

The Tribunal's decision creates a new market rent determination that prevents your landlord from increasing rent again for at least 180 days, unless there are significant changes to the property or market conditions. This provides you with rent certainty for several months.

In some cases, the Tribunal may order your landlord to address property condition issues before any rent increase takes effect, particularly if poor maintenance or needed repairs were factors in determining the market rent.

You can continue living in your rental property throughout the market rent review process. Keep paying your current rent until the Tribunal makes a decision - don't stop paying rent or pay a reduced amount, as this could put you in breach of your tenancy agreement.

Your landlord cannot terminate your tenancy or take other action against you simply because you've applied for a market rent review. This would be considered retaliatory action and could result in penalties for your landlord.

Maintain a normal landlord-tenant relationship during the dispute process. Continue to report maintenance issues, follow tenancy agreement terms, and communicate professionally with your landlord. The dispute is about rent levels, not about your tenancy rights or obligations.

If your landlord becomes difficult or retaliatory during the market rent process, document their behaviour and consider seeking legal advice about your options. Tenant harassment is illegal and can be addressed through separate Tribunal applications.

While you can represent yourself in market rent disputes, legal representation can significantly improve your chances of success. Tenancy lawyers understand how to present evidence effectively, know what factors the Tribunal considers most important, and can identify legal arguments you might miss.

Lawyers can help you gather stronger evidence by knowing what types of comparable properties are most persuasive, how to document property condition issues effectively, and how to obtain professional property assessments that carry weight with the Tribunal.

Legal representation is particularly valuable if your landlord has their own lawyer, if the rent increase is substantial, or if there are complex issues about property condition or comparable rentals. Lawyers can also advise whether your case is strong enough to justify the time and cost of a Tribunal application.

Many tenancy lawyers offer initial consultations to assess the strength of your market rent case and can provide advice on whether to proceed with a Tribunal application or negotiate directly with your landlord for a more reasonable increase.