Katy Blackley of Treeby Freeman Real Estate Pty Ltd trading as Treeby First National on behalf of the landlord.

1. The tenant, Maria Teresa Coelho Marques and the landlord George Darmos are parties to a residential tenancy agreement for the premises situated in Ringwood North ('the rented premises'). Treeby Real Estate Pty Ltd trading as Treeby First National is the managing agent of the rented premises ('the agent'). Mr Darmos' wife Mrs Stamata Darmos is also a landlord under the residential tenancy agreement, however Ms Marques has only named Mr Darmos in her application.
2. The rented premises is a unit comprising 3 bedrooms, 1 bathroom and 1 carport. There is no air conditioning. The unit is more than 11 years old. There was no evidence presented of any significant renovations since Ms Marques commenced occupation of the rented premises over 11 years ago.
3. Mr and Mrs Darmos served a notice of rent increase on Ms Marques on 25 February 2015 ('the notice'). The notice increased the rent from $1434 per calendar month ('current rent') to $1477 per calendar month ('new rent') commencing on 2 May 2015. This equates to an increase in the weekly rental from $331 per week to $340 per week.
4. Ms Marques seeks an order of the Tribunal that the new rent is excessive. If I find that the new rent is excessive, I must also decide the maximum rent that can be charged by Mr and Mrs Darmos for a period of 12 months from the date of this order.
5. At the hearing on 17 July 2015, Ms Marques sought leave of the Tribunal under section 46 (3) of the Residential Tenancies Act 1997 ('the Act') to proceed without a report from Director of Consumer Affairs ('the Director') as Ms Marques has lost confidence in the Director.
6. The matter was heard by me on 17 July 2015 and 7 August 2015, and at the conclusion of the hearing on 7 August 2015 I reserved my decision.

1. Section 44 states:

(1) A landlord must give a tenant at least 60 days notice in the prescribed form of a proposed rent increase.

(4A) A landlord must not increase rent payable under a tenancy agreement by intervals of less than 6 months.

1. Section 46 states:

"(3) If a tenant has received a notice of a rent increase and the tenant considers that the proposed rent is excessive, the tenant may, with leave of the Tribunal, apply to the Tribunal for an order declaring the proposed rent excessive without receiving a report from the Director under section 45.

(4) An application under subsection (3) may only be made after the end of 30 days after the notice of the increase is given.

(5) The Tribunal may grant leave under sub-section (3) if it is satisfied that there are reasonable grounds for the tenant's failure to request the Director to investigate and report under section 45."

1. Section 47 (1) states:

(1) If an application is made under section 46, the Tribunal may-

(i) declaring the rent or proposed rent excessive; and

(ii) directing that for the period specified in the order the rent must not exceed the amount specified in the order; or

1. Section 47 (3) sets out the following factors that the Tribunal must have regard to when determining whether the new rent is excessive:

(a) the rent payable for comparable rented premises let under a tenancy agreement by a landlord, other than a public statutory authority, in the same locality;

(b) the state of repair and general condition of the rented premises;

(c) the cost of goods and services and facilities provided with the rented premises;

(d) any charges in respect of the rented premises for which the landlord is or may be liable under this Act or any other Act or the tenancy agreement;

(e) the cost of goods and services and facilities provided by the tenant under the tenancy agreement;

(f) any charges payable by the tenant under this Act or any other Act or the tenancy agreement;

(g) any work which the tenant has done with the landlord's consent or agreed with the landlord to do to the premises;

(h) any changes in rent and the condition of the rented premises or facilities since the commencement of the tenancy agreement and since the last rent increase;

(ha) the number of rent increases (if any) in the preceding 24 months, the amount of each rent increase in that period and the timing of those increase;

1. The notice was issued to the tenant by Mr and Mrs Darmos on 25 February 2015 by registered post, and provided for the new rent to take effect from 2 May 2015. The notice was in the prescribed form required under section 44(1) of the Act.
2. Mr and Mrs Darmos previously issued a notice of rent increase to Ms Marques on 25 June 2014, which set a new rent of $1434 effective from 2 September 2014. This notice of rent increase was issued to Ms Marques 6 months prior to the notice in question in this proceeding, and the effective date of 2 September 2014 was 8 months prior to the commencement of the new rent in this proceeding. Mr and Mrs Darmos have complied with section 44(4A) of the Act.

Leave to proceed without a report of the Director

1. At the hearing on 17 July 2015, I granted leave to Ms Marques to proceed without receiving a report of the Director. It was clear during the hearing that Ms Marques had lost confidence in the Director, and I found this to be a reasonable ground to grant leave.

Factors to consider when determining whether the new rent is excessive

1. I must now consider the factors set out in section 47(3) of the Act in order to determine whether the new rent is excessive.

Rent payable for similar premises let under a tenancy agreement (other than a public statutory authority) in the same locality

1. At the hearing on 7 August 2015, Ms Marques produced a one page print out obtained from the internet on 13 July 2015. The following properties were listed on the print out:

Extremely neat two bedroom unit. Light and bright open plan living. Freshly painted in neutral colours, new carpets, window furnishings and light fittings throughout. This unit comprises spacious lounge, kitchen/meals area, gas cooking, reverse cycle air conditioning, separate laundry and a...

From the entrance, a sunken formal lounge complete with cathedral ceilings and an open fireplace leads through to a light filled kitchen and adjoining family/meals area. The main bedroom boasts an ensuite and walk in robe, while two additional bedrooms are serviced by a central family sized...

Conveniently positioned within walking distance of Kalinda Primary School, Yarra Valley Grammar and just moments from public transport, McAdams Square and Burnt Bridge Shopping Centre this solid brick veneer home consist of a sunken formal lounge, open plan kitchen, dining and family area...

This unit comprises of two bedrooms, both with built in robes, single lock up garage, large living area, kitchen with dishwasher and gas stove, bathroom with bath and separate shower, a larger than usual laundry and access to the spacious low maintenance...

This neat as a pin unit is situated in a quiet Croydon street and comprises lounge with air conditioner, modern kitchen, and a separate meals area. There are three bedrooms, two with built in robes, gas ducted heating, private rear garden with shed and double carport with garage door...

1. Ms Marques gave evidence that her neighbour pays rent of $1499 per month for a property within the same block of units. Ms Marques stated that whilst her neighbour's unit is 3 bedroom and 1 bathroom, it also has parking for two cars and a split system air conditioner in the lounge room. Ms Marques also stated that the neighbour uses an area outside the unit for extra parking. Ms Marques gave evidence that she believed she should not have to pay the increased rent as she does not have air conditioning or parking for more than one car. The agent gave evidence that Ms Marques' neighbour did not have permission to use the area outside the unit for extra parking as it was a common area or easement.
2. At the hearing on 7 August 2015, the agent produced a document titled "Comparative Market Analysis" ('the report'). The report was prepared by the agent and listed properties in Ringwood North and surrounding areas that have been rented by the agent in the last eight months. The list was extensive and included properties from surrounding suburbs. The report disclosed the median rental for a three bedroom unit to be $350 per week and the average weekly rental to be $359 per week. The report also contained an estimated weekly rental appraisal for the rented premises of $352 per week. This is less than the new rent.
3. The following properties are listed in the report:

1. The agent also provided a list of the following properties currently advertised for rent in Ringwood North and nearby suburbs by its competitors Carter Real Estate, Harcourts Real Estate and Philip Webb:

Compact but neat one bedroom unit comprising lounge with as new carpet, bedroom with built in robes, as new kitchen with electric cooking, combined as new bathroom/laundry and separate toilet. Close to all major amenities....

Fresh and light 2 bedroom unit at the end of a block of 5 units, in an ideal location. Large lounge room offers plenty of light, and has gas heating. Kitchen/meals area with ample bench space and gas cooking. Updated bathroom with separate shower and bath. Good sized bedrooms both with built in robes. Floorboards through majority of the unit. Good sized court yard and a single lock up garage. Close to East Ringwood Shops and railway station, Eastland, Eastlink, Ringwood Lake, schools...

...This lovely modern apartment features a kitchen that is sure to impress with plenty of storage and stainless steel appliances- including dishwasher, The open plan living and dining area opens out to a well presented and low maintenance courtyard, perfect for entertaining. The two spacious bedrooms, both with built in robes, are serviced by the elegant bathroom which features a separate bath and large shower recess. The European laundry, secure car space and fully enclosed lockable storage area complete this easy living, sophisticated apartment...

This freshly renovated 2 bedroom cottage offers a country feel combined with a renovated interior including a brand new kitchen and modern bathroom and air conditioning. Complete with off street parking for two cars and situated in central Ringwood, the location is ideal for those looking for easy access to all services. Public transport including the Frankston and Airport bus, Eastland, Eastlink, various primary and high schools, Ringwood Aquatics centre, parks and sporting facilities are all readily accessible.

Situated in a highly convenient pocket of Croydon this updated two bedroom apartment ticks all the boxes for carefree living, Comprising security entrance, bright living/dining flowing onto sun drenched balcony, highly functional kitchen ...

This modern new property offers low maintenance lifestyle in a quiet yet supremely convenient pocket of Croydon close to all amenities. This beautifully presented home comprises entry with storage, rear light open-plan living/dining...

Located in a highly desirable spot close to all Croydon has to offer this superb two bedroom first floor apartment will knock your socks off with its chic style! Comprising security entrance with intercom, entrance hallway, two bright...

This two bedroom unit at the rear of a quiet leafy three unit complex is located close to public transport, shops and parks, with a tastefully landscaped rear yard you will enjoy all year round. Inside, the bright light filled lounge room walks..

Here's a beautifully renovated, clinker brick family home that's perfect for everyone! Set on a corner block in a prime location with street appeal and manicured low maintenance garden with a second landscaped fenced area...

Situated in a lovely spot, this double storey modern townhouse is positioned in a quiet street to ensure privacy and security. Ground flooring housing entrance hallway, open plan lounge flowing through to the large dining area overlooked by...

Situated on your own low maintenance block the house sized single level three bedroom, two bathroom unit has been built with quality care free living in mind! Comprising wide entrance hallway, light & bright open plan lounge/dining that flows...

This 2 bedroom unit is in a great location being on a hop away from Eastland Shopping Centre and public transport and Eastlink. Bedrooms are of a good size with build in robes, sun filled lounge with near new carpet, gas wall heater & cooling, kitchen with gas cooking and bathroom consisting of separate bath and shower.

There's more than first meets the eye at this uniquely flexible residence, positioned in a quiet nook of a well maintained complex. With unrivalled peace and privacy, and picture perfect garden views, this beautifully presented three bedroom....

This three bedroom home offer stylish polished boards throughout and a neutral décor.

Set in a quiet location at the rear of the complex you'll find this well maintained 2 bedroom unit with build in robes.

Built in robes to both generous bedrooms, spacious kitchen with gas cooking and dishwasher, moments from shops, schools, public transport and more! You will be pleasantly surprised with this delightful two bedroom unit situated in a great location within walking distance to shops, schools, parks and transport.

Located in sought after Bayswater North, just moments from train and bus transport, shopping precinct, local schools and parkland this well presented home features 2 bedrooms, updated kitchen, lounge/dining area, 2 bedrooms both with ensuite effect central bathroom and separate toilet.

Modern four bedroom townhouse, master bedroom with full ensuite and walk in robe, separate lounge, modern kitchen includes wall oven, gas hotplates, dishwasher, rangehood and pantry, meals area with access to rear yard.

Gorgeous fully renovated 3 bedroom house in a fantastic location in Croydon with walking distance to Mooroolbark station and shopping.

Oakridge, is locate on the corner of Valentino Drive and Mount Dandenong Road in one of the most sought after positions in the Croydon/Ringwood area.

It's a great luxury to have a green outlook from your living room, and this house, convenient as it is, enjoys such a view.

Hurry to inspect this weatherboard home with period characters throughout, room for the whole family with 2 living areas, 3 bedrooms all with built in robes, central kitchen with gas cooking, separate laundry, toilet and bathroom.

Enjoying peace and privacy, we offer this delightful two bedroom home with a generous low maintenance courtyard

Built in robes in both bedrooms, semi modern kitchen with gas cooking and loads of cupboard space, modern bathroom with separate bath and shower. Just minutes from Eastland, Eastlink, schools and more

Hurry to inspect this well presented two bedroom home located in the heart of Ringwood

Wow you will be impressed when you inspect this apartment

This brilliant unit blends traditional comforts with the convenience of a fantastic location

Located within a minutes walk to cinemas, cafes, restaurants, transport services, Eastland with immediate Eastlink access to the city, this two bedroom apartment is set in a stylish complex and offers split system heating/cooling, European laundry facilities, floating timber floors, integrated meals zone and a spacious lounge room

Be first to secure this villa unit set peacefully in this quality development

Set in perfect location, walking distance to an abundance of shops, parks and a bus stop at your own from door- this property is the place to live

Step inside this gorgeous two bedroom unit and be pleasantly surprised by the size

Fresh as a daisy and more like a little house than a unit, this home has been superbly maintain and is just moments from the delights of Eastland, schools, transport and Eastlink

A rare opportunity exists to occupy this fully furnished home

Call now to inspect this well presented, fully renovated home

Located in popular central Ringwood, just moments from Eastland Shopping Centre, Eastlink Access, Ringwood Train and Bus Station, local schools and parkland is this well presented family home.

Large family home in fantastic location featuring five generous bedrooms, multiple living zones, off street parking for 4 cars. This spacious family home is flexible living at its best.

Perfectly located within moments from Ringwood train station, Eastland shopping centre, Ringwood secondary college, Our Ladies Catholic Primary School, Ringwood Lake and much more, we offer this stunning brand new townhouse.

Set on a large allotment with plenty of space this home features three distinct living areas catering for a family of any size, large formal lounge and dining, large family room and rumpus room with kitchenette.

A sensational lifestyle opportunity, this single level unit is a sun-filled of multiple conveniences.

This fantastic renovated two bedroom unit offers all the comfort and benefits that one could desire.

Built in robes in both bedrooms, walk in robe to master and ensuite-effect, immaculate kitchen with gas cooking and stainless steel appliances, amazing outdoor decked pergola, moments from schools, public transport, Eastland and more! Enjoying peace and privacy, we offer this delightful two bedroom home with a generous north facing and low maintenance garden with superb outdoor entertaining area.

Two spacious living areas, ducted heating and split system cooling, large entertainers backyard, central country style kitchen with dishwasher and gas cooking. Oozing charm and character we offer this delightful weatherboard home.

Perfectly located within easy walking distance of Ringwood East train station, local shopping, cafes, Maroondah Hospital, local schools, parks and more, we offer this comfortable and affordable home.

Intelligent design and an impressive modern aesthetic give this double storey townhouse a tangible yet understated luxury.

4/10 Braeside Avenue, Ringwood East and 6/10 Braeside Avenue, Ringwood East

Be the first to occupy this spacious 4 bedroom townhouse, tucked in a quiet street yet only a stone's throw from all local Ringwood has to offer.

1. The agent gave evidence that to the best of her knowledge the only difference between the rented premises and the neighbouring unit was the split system air conditioner and the double carport.

The state of repair and general condition of the rented premises

1. The parties did not make any submissions at the hearing in relation to the state of repair of the rented premises, except for the submission of Ms Marques that the rented premises did not have a split system air conditioner.

The costs of goods and services and facilities provided with the rented premises, any charges in respect of the rented premises for which the landlord is or may be liable under the Act or any other Act or the lease

1. Mr and Mrs Darmos are responsible for the payment of council rates, water rates, any applicable owner's corporation fees and any land tax. Mr and Mrs Darmos are also responsible for the general maintenance of the rented premises. The parties did not make any further submissions about these costs.

The cost of goods and service and facilities provided by the tenant under the lease, any charges payable by the tenant under the Act or any other Act or the lease

1. The parties did not make any submissions in relation to any goods, services or facilities provided by Ms Marques at the rented premises.

Work that the tenant has done with the landlord's consent or agreed with the landlord to do to the rented premises

1. The parties did not make any submission in relation to any work completed by the tenant at the rented premises.

Any changes in the rent and the condition of the rented premises or facilities since the commencement of the lease and since the last rent increase

1. Ms Marques has been living in the rented premises for over 11 years. The parties did not make any submissions in relation to the condition of the rented premises or facilities since the commencement of the lease or the previous rent increase on 2 September 2014.

The number of rent increases (if any) in the preceding 24 months, the amount of each rent increase in that period and the timing of those rent increase.

1. Ms Marques produced copies of a Notice of Rent Increase dated 25 June 2014, increasing rent from $1390 per calendar month to $1434 per calendar month, effective from 2 September 2014.

1. The parties did not provide a current valuation of the rented premises.

1. I have considered the evidence provided by the parties and each of the factors set out in section 47(3) of the Act.
2. In order to assess whether the new rent is excessive I must consider the new rent in the context of the rent paid for other premises in the same suburb as the rented premises. I must also consider the rent paid for the neighbouring premises.
3. I am persuaded by the evidence provided by the managing agent in the report, as this is the most accurate representation of current market rental for properties within the same suburb, offering similar amenities to the rented premises and within close proximity to the rented premises
4. The report notes that the properties at 1/13 Loughnan Road Ringwood and 1/19 Tamar Street Ringwood North are located less than 300 metres from the rented premises and have three bedrooms and one bathroom. The property at Loughnan Road, Ringwood has one car park and the property at Tamar Street, Ringwood North has 2 car parks. Both properties attract rent higher than the new rent. The rent payable for 1/13 Loughnan Road, Ringwood is $360 per week and rent payable for 1/19 Tamar Street, Ringwood North is $440 per week. The properties located at 7/326 Maroondah Highway Ringwood, 1/17 Sonia Street Ringwood and 4/30 Thomas Street Ringwood are all located less than two kilometres from the rented premises, have the same number of bedrooms, bathrooms and car spaces as the rented premises and the market rent charged for these properties is greater than the new rent.
5. The majority of the properties located in Bayswater, Croydon, Croydon North, Ringwood, Ringwood East and Ringwood North advertised by Carter Real Estate, Harcourts Real Estate and Philip Webb are 2 bedroom units. On average, the two bedroom units in these suburbs attract rental of $320-$380 per week. I note that properties located in Ringwood North have a higher value and therefore attract higher rental than similar properties located in Ringwood, Ringwood East, Croydon, Croydon North and Bayswater.
6. I am not persuaded by the print out provided by Ms Marques. The print out does not list any properties located in Ringwood North that are similar to the rented premises. The properties located at 4/40 Arlington Street Ringwood and 4/5 Arlington Street Ringwood are both two bedroom units and therefore not comparable to the rented premises. The property at 26a Maggs Street, Croydon is a three bedroom and one bathroom unit, however the value of property in Croydon is less than Ringwood North and the rent charged for a property located in Croydon with the same amenities as the rented premises is therefore less.
7. I note the evidence of Ms Marques that her neighbour pays $1499 per month. The only additional amenity provided in the neighbouring premises is the split system air conditioner, and I find that a difference in rent of $12 per month on account of the split system is reasonable considering that the one split system unit is installed in a single room and does not cool the entirety of the neighbour's property.
8. In respect of sections 47(3)(b) and (h) of the Act, I accept that the rented premises is in good condition. There has been no evidence presented to me to indicate that the rented premises is not in good repair.
9. In respect of sections 47(3)(c) to (g) of the Act, there has been no evidence presented to me to indicate that there are any unusual circumstances surrounding the tenancy or the rented premises.
10. With respect to section 47(3)(ha), there has been one other rent increase in the previous twenty four months, taking effect on 2 September 2014. The rent increased by $44 per calendar month. I do not find this increase in rent to be excessive.
11. Having regard to the factors that the Tribunal is required to consider under section 47(3) of the Act, I find that the rent increase is not excessive. It is clear from the evidence provided by both parties that many properties that are smaller in size than the rented premises and have a less desirable location than the rented premises attract a rent the same as or higher than the rented premises. It is clear from the number of 2 bedroom units attracting a higher rental that the new rent is reasonable for a 3 bedroom unit located in Ringwood North.
12. I find that the new rent of $1477 per calendar month for the rented premises is not an excessive amount of rent. I therefore dismiss the tenant's application.