Are you next? Controversial rent advice sparks outrage as rising rents hit hard across cities

Australians are facing rental pressures like never before.

A controversial video from a Melbourne real estate agency sparked outrage this week.

The advice it contained has left tenants reeling.

A real estate agent's claim that landlords would be doing tenants a 'favour' by raising their rent ignited widespread criticism amid Australia’s worst rental crisis in decades.

The now-deleted social media video from Barry Plant Korumburra in Melbourne's south-east suggested landlords should increase rents by small amounts, such as '$5', regularly to prevent tenants from being 'shocked' by market rates if they needed to move.

Rents and Vacancy Rates Soar

The guidance landed poorly with renters already struggling under rents that had surged 57 per cent across capital cities over the past decade, from $473 in 2015 to $742 in 2025.

In the video, a Barry Plant agent explained: 'If you don't put your rent up, you price your tenants out of the market should something happen. If you sell, or something else happens, and you need to take the property back, your tenants won't be able to afford the kind of living that they are used to.'

The video quickly attracted tens of thousands of views before being deleted amid a torrent of angry responses.

Tenants advocate Jordan van den Lamb, known as Purple Pingers, delivered a scathing response that drew thousands of comments.

'So, yeah, you're actually helping your tenants when you just consistently raise the rent because that way when you inevitably evict them or price them out of their rental they'll know that everything else is f***ed too,' van den Lamb said.

Barry Plant chief executive Lisa Pennell later apologised for the video, describing it as 'well-intentioned' and clarifying that the agent was advocating for 'gradual increases' rather than 'sudden, short shocks.'

The Broader Rental Crisis

The advice came at a particularly sensitive time.

Vacancy rates across Australia’s combined capital cities had tightened to a record low of 1.5 per cent in August 2025, down from 2.0 per cent in August 2024.

Major cities including Sydney, Melbourne, Brisbane, Perth and Adelaide recorded their worst affordability scores on record over the past year.

Perth saw affordability drop by 13 per cent, Adelaide by 8 per cent, Melbourne by 6 per cent, Sydney by 5 per cent, and Brisbane by 4 per cent.

Once considered affordable, cities such as Adelaide experienced an 81 per cent rental increase over the past decade, followed by Hobart at 76 per cent, Brisbane at 66 per cent, and Perth at 63 per cent.

Rent Controls and Market Pressures

While many renters were outraged by Barry Plant’s advice, some acknowledged the logic behind gradual rent increases.

'There is some valid logic there. I've heard of plenty of tenants that get used to years of low rent and get smashed when they suddenly have to pay market rent,' one commenter said.

Since mid-2022, rents for nearly all properties with new tenants—between 80 and 95 per cent—had been higher than those charged to previous tenants, peaking at 94 per cent in February 2023.

Property experts warned, however, that the situation is more complex than simply preparing tenants for market rates.

Increased demand from regional migration during the pandemic and an influx of overseas migrants since borders reopened in early 2022 put enormous pressure on a tight rental market.

Housing Supply and Social Housing Decline

The controversy also reignited debate about rent controls.

Tasmania and the ACT showed slight improvements in rental affordability, with the ACT benefiting from rent increase limits introduced in 2019.

Nationally, rents increased by 4.8 per cent in 2024 and 1.7 per cent in early 2025, outpacing household income growth and worsening affordability.

Households with a new mortgage spent 50 per cent of their income on housing, while tenants spent 33 per cent.

Only 177,000 homes were built in 2024, far below the 223,000 needed to meet demand.

Australia is expected to fall 262,000 homes short of its 1.2 million target by mid-2029, with net new supply totalling just 825,000 dwellings after demolitions.

Social housing has declined sharply, from 4.7 per cent of all dwellings a decade ago to 4.1 per cent since Labor was elected in 2022.

Implications for Renters on Fixed Incomes

Older Australians face particular challenges.

More households are entering retirement as renters, with only half expecting to own a home in their lifetime.

For rental property owners, the pressure to raise rents is real, but so are ethical concerns about affordability.

Victorian tenants can only have rent increased once every 12 months with 60 days' notice, and increases must not be excessive compared with similar properties.

Even small, regular increases can devastate older renters on fixed incomes, as all major cities and regional areas are now 'critically unaffordable' for those relying on pensions or government payments.

Looking Ahead

CBRE predicted vacancy rates would fall to 1.1 per cent by 2030, with apartment rents projected to soar over the next five years.

Some moderation was seen in early 2025, with capital city rental inflation easing to around 5.5 per cent in April 2025 from its peak of 8.5 per cent in December 2023.

Policy debates continue, with experts warning that overly restrictive regulations could deter investment and worsen the crisis.

Changes to incentives like negative gearing or capital gains tax discounts could have similar effects.

The Barry Plant controversy highlighted a fundamental tension in the rental market—between landlords’ financial pressures and renters’ struggle for affordability.

Gradual rent increases may make sense in theory but provide little relief to tenants already at breaking point.

The struggle to keep up with rising rents is more than just numbers—it affects real people and their daily lives.

One story shines a light on the harsh realities faced when housing becomes unaffordable and the stress it causes for those on fixed incomes.

If you want to understand the human impact behind the rental crisis, this example provides a vivid, real-life perspective.

Read more: ‘This is not how I want to see the end of my life’: The shocking truth about pensioners’ housing struggles

What do you think about the Barry Plant agent's advice—should landlords absorb market pressures or continue raising rents gradually?