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Hi, I can understand your frustration and your instinct to protect your mother is absolutely right. Let me give you an honest assessment of this situation.
On the rental rate:
Based on recent Parkshore transactions at $5.5K, $6K and $6.2K, a renewal at $5.3K with additional rectification costs imposed on the landlord is genuinely below market. Your mother's unit at 1,300 sqft deserves better, even accounting for its age and condition.
On the agent's conduct:
What concerns me here is the sequence of events. A good landlord's agent should:

Negotiate firmly on the landlord's behalf first
Present rectification costs as a separate negotiation, not a condition of closing
Never allow rectification commitments to effectively neutralize a rental increase

The way this was handled — pushing rectification works to close quickly at $5.3K — does raise legitimate questions about whose interests were being prioritized.
What I would recommend:

Do not sign the renewal agreement yet if it hasn't been signed — you still have negotiating room
Request a full breakdown of all rectification works and costs your mother is expected to bear
Get independent quotes for the aircon replacement and any other works before agreeing to anything
Engage a new agent who will represent your mother's interests properly and renegotiate from a position of strength

The aircon replacement alone for a System 2 unit can cost $1,500 to $2,500 — that effectively wipes out months of the $300 increase your mother negotiated.
I specialize in protecting landlord interests in exactly these kinds of renewal situations. If you'd like a second opinion or wish to explore re-marketing the unit at a proper market rate, I'd be happy to assist your mother directly. Read More