Rent increases are often unavoidable. If you have been renting a home for some time then you will have no doubt experienced this. There are rules, however, involving rent increases such as how much the rent can be raised and how often.
Sadly, some tenants may not realise this and if they are renting privately may find they are hit with increases at a higher rate or more often than they would like. If you are renting through a reputable Campbelltown agent though, such as Prudential Real Estate then this won’t be a problem.
Thanks to our longevity and knowledge in the rental industry we have committed ourselves to servicing each party involved in rental agreements, the tenant and the owner. Because of this we keep our team up to date with the laws regarding rent increases so that we can pass this information on to tenants and owners.
Notice to increase rent
If your tenancy agreement is on a periodic base, then the intention of increasing the rent needs to be done with at least 60 days notice. This needs to be done in writing and needs to state clearly:
- The new rent amount;
- The date from when the new amount is payable; and
- Your name and address, date and a space provided for your signature.
If there is no written agreement in place then the rent is unable to be increased for the first six months of occupancy. At this time we will point out that at Prudential Real Estate Campbelltown there will always be a tenancy agreement in place.
Fixed term agreements
If the fixed term agreement is for a period of less than two years the owner can only raise the rent if there is a term added stating this. Otherwise, a rent increase is not possible in this time. If there is a term added it needs to be specific and clearly state the amount and method of calculating the increase.
If the rental agreement is on a fixed term of two years or more, the rent can be raised at any time, but not more than once in 12 months, provided the required 60 days notice is given in writing. When a rent increase is received and you don’t agree you can give a 21 day notice to cancel your rental agreement.
If you would like more information on rental increases and the different tenancy contracts this relates to, contact us at Prudential Real Estate Campbelltown today.