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Rent increases are skyrocketing, but negotiations are still happening. Here's how people are doing it

As rent increases rise, tenants are being encouraged to try and work down the price with their landlord. (ABC News)

Tenants are continuing to feel the pinch of rising rent increases across the country.

In New South Wales, there is no limit on the amount a landlord can raise rent, and the Minns government confirmed freezes wouldn't be on the cards.

The median weekly rent has jumped by 13 per cent in Sydney over the last 12 months, according to the latest CoreLogic data.

Chief executive of the Tenants' Union of NSW Leo Patterson Ross said renters are at a loss to stop or negotiate an increase.

"We're used to dealing with rental increases of $20 or $30 at a time, but in the last year, we've started seeing increases of more than a $100 becoming pretty regular," he said. 

Leo Patterson Ross encourages tenants to attempt a rent negotiation if they feel the proposed increase is excessive. (Supplied: LinkedIn)

The biggest increase the union has seen so far has been an additional $500 a week.

"Renters have been trained to think over many years that with a rent increase, there might be some negotiation, but essentially there's nothing you can do about it," Mr Patterson Ross said. 

"It's something that people aren't used to doing."

Get ahead of the curve

If a rent increase feels like it's on the horizon, Mr Patterson Ross says tenants can weigh up whether presenting their own figure will serve them better than waiting for their landlord to reach out first.

However, he warns this move is a gamble if a landlord was never planning on increasing the rent in the first place, or if the tenant accidentally offers more than what the landlord was going to propose.

"Trying to find out what neighbours or people around you of a similar age and type of property [is paying] is very useful," Mr Patterson Ross said.

He also recommends using a rent tracker postcode tool, or rental bond data, to help with the research process. 

Put your case forward

If a tenant feels the landlord's rent increase proposal is too high, Mr Patterson Ross recommends writing a counter-proposal.

He also said tenants should keep a written record of maintenance or repair requests that haven't been met yet, to help with informal negotiations. 

Joel Dignam, from advocacy group Better Renting, says tenants need to take every possible means to make "every penny count".

"It's probably worth a shot to try to get a lower rent increase, particularly if you can point to things that would justify a different amount such as the state of the market or the state of repair of your current property," Mr Dignam said.

"Or you could try to get a commitment to do certain things to the property alongside increasing the rent. If they say no, you aren't necessarily in a worse position."

Consider the tribunal

While experts say informal discussions are the cheapest and most mutually beneficial options for both parties, sometimes negotiations break down.

Ned Cooke, from the Inner Sydney Tenants' Advice and Advocacy Service, said tenants in NSW can dispute an excessive rent increase though the NSW Civil and Administrative Tribunal (NCAT). 

The Residential Tenancies Act lays out a range of factors that assist the tribunal in reaching a decision, including the market value for similar properties in the area.

Unfortunately for tenants, their ability to pay the increased rent price is not a recognised factor during proceedings.

Mr Patterson Ross said once a rent increase has been served, a tenant only has 30 days to put in an application to the tribunal for a hearing, which costs $54 to lodge. 

"It can sometimes cement [a landlord's] position and make them harder to have a conversation with," Mr Patterson Ross said. 

Reach out for help

If a tenant is in a dispute, has received a questionable termination notice, or an invalid notice for their rent increase, Mr Cooke said they should seek legal advice from their local tenant advocacy service. 

NSW Fair Trading provides a free complaint service for tenants, which includes rental increase disputes.

Mr Dignam acknowledges it's an especially tough time for renters, with cost of living concerns coupled with the burden of negotiating rent.

Joel Dignam said cost of living concerns are hitting the sector. (ABC News: Nick Haggarty)

He said people experiencing stress from rent increases should consider financial counselling, which can help explore possible rebates or concessions.

"It can be worth talking about your experience with others, particularly other renters," Mr Dignam said.

"While people may not be able to fix your problem, it's important to affirm that it's not your fault and you aren't alone."

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