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Tenancy Tip Thursday - Rent Raising Requirements

Discussion in 'Property Management' started by D.T., 19th Nov, 2015.

  1. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,584
    Location:
    Adelaide, SA
    Hiya's

    Been a lot of questions recently regarding raising the rent. How often can you do it? How much notice do you need to give? etc

    Obviously increasing the rent is good; everyone likes more money in their pocket. Doing so (and in fact not doing so) will be justified by a good agent using nearby comparable properties and market experience. I prefer to use the term 'optimising' rent, rather than increasing it, as you always want to get the most you can but at the same time you want to keep the property occupied as well.

    Keep in mind in that in all states, if a tenant thinks an increase is excessive, they can lodge a dispute with their state's tribunal. They'll review and amend it if deemed necessary. The tribunal can also reverse the increase if the correct procedure was not followed.

    In all states there is provision to increase or decrease the rent at any time by mutual agreement, eg if a new feature is added to the property or if a certain feature is nonoperational.

    Can I increase the rent during a fixed term tenancy?
    Qld, SA, Vic:
    Yes, but only if the lease actually specifies when it'll increase and how much by. You need to be specific here - use a dollar figure or a percentage - don't say "in line with market". The usual frequency / notice periods still apply.
    NSW < 24mths: As per QLD, SA, Vic.
    NSW > 24mths: Yes, using the appropriate notice period. Note that in doing so, the tenant is allowed to provide you 21 days notice to break lease without penalty.
    WA: Yes, after 6 months with appropriate notice.

    How often can I increase the rent during a fixed term tenancy?
    NSW:
    12 months, but note above conditions
    Qld, Vic, WA: 6 months
    SA: 12 months

    How often can i increase the rent during a periodic tenancy?
    NSW:
    Not in the first 6 months, as often as you like afterwards observing the notice period.
    Qld, Vic: 6 months
    SA: 12 months

    How much notice do I need to give for a rent increase on a periodic lease?
    NSW, SA, Vic, WA:
    60 days
    Qld: 2 months

    How much notice do I need to give for a rent increase on a fixed lease?
    NSW, SA, Vic, WA:
    60 days
    Qld: 2 months

    Can I top up how much bond is held to match the new rental amount?
    QLD, SA, WA:
    Yes. Refer to Tenancy Tip Thursday - Rental Bonds

    Most of the states have much the same rules as you've seen. If you have any questions or need any additional topics covered then be sure to let me know.

    Cheers,

    Dave :)
     
    Last edited: 19th Nov, 2015