Tenants may make an application to SACAT for a declaration that the rent payable is excessive.

SACAT will take the following factors into account when determining if the rent payable is excessive:

• the general level of rents for comparable premises in the same or similar localities
• the estimated capital value of the premises at the date of the application
• the outgoings that the landlord is liable for under the rental agreement
• the estimated cost of the services provided by the landlord and the tenant under the rental agreement
• the nature and value of furniture, equipment and other personal property provided by the landlord for the tenant’s use
• the state of repair and general condition of the premises
• the estimated cost of goods and services provided under any domestic services agreement collateral to the tenancy agreement
• if the rent was increased by mutual agreement between the tenant and landlord, whether the tenant was put under undue pressure to agree to the increase
• any other relevant matter

If SACAT finds that the rent payable is excessive, then SACAT may:

• fix the rent payable and vary the rental agreement by reducing the amount payable
• fix a date (which cannot be before the date of the application) from which the variation to the rent takes effect and
• fix a period for which the order is to remain in force

The landlord may also make an application to SACAT to vary or revoke an order fixing the rent payable.

While an order fixing the rent under a tenancy agreement is in force, or an application has been made to SACAT regarding excessive rent, a tenancy can only be terminated for:

• a breach of the residential tenancy agreement where the tenant has been issued a Form 2 and has not rectified the specified breach
• if the tenancy is periodic and
  • the landlord requires possession of the premises for demolition
  • the landlord requires possession of the premises for repairs or renovations that cannot be carried out conveniently while the tenant remains in the property
  • the landlord requires possession of the premises for occupation by themselves, their spouse, child or parent, or the spouse of the landlord’s child or parent
  • the landlord has entered into a contract for sale of the premises under which the landlord is required to give vacant possession

and SACAT has authorised the issue of the notice of termination.