RENT prices across Newcastle and Lake Macquarie have shot up 4.5 per cent in 12 months, with renters in the region forking out an average of $616 per week.
That's according to CoreLogic's new rental Pulse report released this week which shows that rent values in the region increased 0.5 per cent in the past month and 1.5 per cent in the last quarter.
This was the equal third-highest increase of sub-regions in regional NSW, placing Newcastle and Lake Macquarie on par with the Mid North Coast and New England and North West.
The rising cost of living coupled with rental increases are putting added pressure on renters.
New research by Finder reveals that nearly one in two (45 per cent) of renters in Australia said they struggled to pay their rent in April, according to Finder's Consumer Sentiment Tracker.
Finder's money expert Richard Whitten said although landlords have the upper hand when it comes to increases, renters could potentially negotiate down to a smaller one.
Danielle MacAskill, head of property management at Belle Property Newcastle and Lake Macquarie, said negotiating with your landlord is an option however, it is important to take an educated approach beforehand.
"Jump online and check out what's about in the marketplace," Ms MacAskill said.
"You may find that you are actually paying on or below the current market rent and the rent increase is warranted.
"Come up with a figure that you think is fair. If you go in not wanting to budge at all, that's not negotiating.
"Start the negotiations with a number and go from there."
Ms MacAskill said agents conduct market research when deciding rent figures for properties, looking at comparable properties that have been leased in the last three to six months.
"There are other factors to consider also but they bring all those factors together to come to an informed and researched recommendation to make to their clients on potential rental returns," she said.
"Do the same and arm yourself with information, chances are if you have been in a property for more than 12 months to two years you may not have noticed the market shift."
Before accepting a price increase from your landlord, check the rules in your state.
In NSW, the landlord or property manager can increase the rent provided that they give you correct written notice and that a rent increase is permitted under your tenancy agreement.
Landlords in NSW are legally entitled to increase the rent once in any 12-month period.
Renters are entitled to 60 days' written notice of a rent increase, according to the Tenants Union of NSW.
Ms MacAskill said a review of a tenancy is generally carried out every 12 months to ensure the landlord is achieving market rent.
"Consider the fact that the market has changed and consider that the property you rent has increased in rent per week and is worth more than it was 12 months ago," she said.
When putting in a request to negotiate your rent, she advises calling your landlord or property manager.
"Communication is vitally important for all parties," she said.
"In my experience, property managers and landlords would rather talk about these kinds of disagreements.
"Always start with a verbal phone call and then put everything in writing via email from that point.
"Any request for negotiations of any kind will generally always be requested in writing for paper trails. It's protection for all parties."
While rental market conditions are still tight across the region, supply levels are slightly higher than where they were one year ago.
The April 2023 rental vacancy rate across the region was 1.1 per cent, up slightly from 1.0 per cent in April last year, according to CoreLogic's Rental Pulse report.
"Momentum is clearly easing across regional rental markets as internal migration rates normalise and vacancy rates move off recent record lows," CoreLogic head of research Eliza Owen said.
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