Why do rent increases occur?
There are many reasons rent increases occur throughout the time of your tenancy. Some of these include:
- Changes in rental market conditions
- To assist in the overall increase of expenses of the property including rates and insurance premiums
- Improvements being carried out to the property resulting in the rental value increasing
How often can your rent be increased during your tenancy?
2020 saw changes made to the legislation surrounding Real Estate, including Residential Tenancies, which included a limitation of one rent increase to the tenancy in every 12 month period for periodic tenancies (meaning that your fixed term Residential Tenancy Agreement has expired and you have continued your tenancy on a periodic agreement).
How much can your rent be increased by?
There is currently no limit to the figure in which your rent can be increased by, however, the rent increase must be fair, reasonable and justifiable meaning that it must be in line with the market conditions at the time the rent increase is carried out.
How much notice are you required to be given by the Landlord / Real Estate Agent?
The Real Estate Agency you are renting through (or landlord, if you are renting privately), is required to provide you with 60 days notice outlining the rent increase.
Can your fixed term Residential Tenancy Agreement include a rent increase in the fixed term period?
Yes, providing it is outlined in the Residential Tenancy Agreement at the time of signing the agreement. Here at Property Excellence, it is not a common occurrence that a rent increase is included in a fixed-term period. If a rent increase was to be included in the fixed term period of the Residential Tenancy Agreement, this something that would be discussed with you before the preparation of that Agreement.