“Kafkaesque madness”: tenant left baffled by Consumer Affairs investigation

In 2024, Consumer Affairs Victoria received more than 7000 requests for rent investigations, and one Southbank tenant has found themselves caught up in this statistic more often than they would have liked.

This tenant, who wished to remain anonymous due to ongoing concerns about their rental security, approached Consumer Affairs Victoria (CAV) three years ago after receiving a 39 per cent rent increase.

Following CAV’s rental assessment process, the increase was deemed “excessive”. However, a year later, the same tenant faced another increase – this time by 32 per cent – but it was not deemed “excessive”, and the investigation process, according to the tenant, descended into “Kafkaesque madness”.

When CAV investigates a rent increase, investigators must consider the statutory criteria under the Residential Tenancies Act 1997, including the rent payable for comparable properties in similar locations, the property’s state of repair, and its overall condition.

A major point of difference between the two investigations was the market comparison. During the first investigation, the properties analysed were nearby, in similar condition, and currently being rented.

However, in the second investigation, the methodology changed. The data cited included properties outside the resident’s suburb, of different nature and condition, and even properties that were only being advertised, not actually rented.

CAV also told the resident that it approached “four local and experienced” real estate rental property managers for valuations. While the Act allows this, the resident argued that requesting valuations from the real estate agents who “were the ones setting the rent increases in the first place” went against its role of protecting tenants from excessive rent increases.

Additionally, the tenant was initially discouraged from pursuing the second assessment, and the process lacked the transparency of the first.

As part of the rental assessment, a CAV case officer typically contacts the renter and may arrange an inspection. But for the second investigation, the process was significantly more drawn out.

When the officer finally inspected the apartment, the tenant asked why the process differed so greatly.

The officer’s alleged response: “Things have changed a lot at Consumer Affairs Victoria in the last six months.”

It took months for the tenant to receive the methodology data, and when they disputed the findings with the officer, they never received a response. The tenant subsequently reported the matter to the Ombudsman and the then-Minister for Consumer Affairs Gabrielle Williams.

There was a glimmer of hope when the tenant was contacted by a CAV escalation manager following the outreach to the Minister. However, this led to further distress.

After providing evidence to the escalation manager over several months, the tenant received a phone call stating that relevant information had been gathered. Due to work commitments, the tenant asked to receive the findings via email.

The escalation manager, however, insisted on phone communication only, even threatening to escalate the matter to the Victorian Ombudsman.

In an email sighted by Southbank News, the escalation manager wrote: “I am neither compelled by way of policy to correspond extensively in writing to you in relation to the matter you have raised, nor am I regarding you as having met the criteria for an unreasonable complainant at this stage.”

“Should you pursue this manner of communication, I will reluctantly be required to refer you to the Victorian Ombudsman,” the manager warned.

The tenant has been left dumbfounded by the process. Despite reporting the escalation manager’s conduct to the Minister’s office, they are still waiting for a response months later.

Southbank News asked CAV whether it is standard practice for escalation managers to insist on communicating via phone but received a more general statement regarding the investigation process.

A CAV spokesperson said, “we know that this is a challenging time for many Victorian renters, and there continues to be a high demand for our rent increase investigations.”

“We continue to provide information and advice to the community about their renting rights, and we encourage anyone concerned about an excessive rent increase to contact Consumer Affairs Victoria for assistance.”

Additionally, earlier this year, a raft of renters’ rights reforms was announced by the Victorian Government, which includes the notice period for rent increases and notices to vacate changing from 60 to 90 days.

The government has also established a new Rental Dispute Resolution Victoria (RDRV) service, offering a fast and affordable way for renters, rental providers, and real estate agents to resolve disputes over rent, damages, repairs, and bonds.

However, while the tenant who spoke with Southbank News welcomed the new reforms, they said the changes are yet to provide a solution to their situation.

After three years of investigations and numerous moments of hope, they are still unsure why two investigations by CAV have led to such different outcomes, and the prospect of finding an answer doesn’t seem any closer to them. •