The Property Investors Federation is warning of big rent rises in the near future, as landlords lose the right to claim depreciation on their properties.
The cost of living rose by 1.1% over the September quarter, although rents went up by just .5%.
The federation's Andrew King says that, while rental rises have been subdued, that will change - because landlords face rising costs for rates, insurance, interest payments and maintenance.
Mr King says depreciation changes next year will also have a big impact, driving up rents by 5%.
He says renting is still about $6000 a year cheaper than owning the average house.