Our office understands the importance of rental returns on your investment. For this reason, we are constantly monitoring the market rent on your behalf. When tenants vacate or a tenancy agreement is renewed, we will carry out a fair market rent review. If a rent increase is justified, it is important to note that there are notice periods that must be adhered to.

To increase the rent either at the end of a fixed term agreement or for a tenancy where they are in a periodic agreement (ie, the fixed term has expired and they have not signed another fixed term agreement), the tenant must receive 60 days written notice, plus postage days.

Rent can increase during a fixed term (maximum once per year), but only if stipulated within the agreement on signing, with the method of calculating the increase or the amount of the increase.  Although this is stipulated within the agreement, the tenant must still receive sixty days notice prior to the increase coming into effect.

What we look at when carrying out a rental increase:

• Rental prices of similar properties in the neighbouring area
• Supply and demand of tenants and properties
• Council rate increases
• Interest rate increases
• CPI increases
• Last rental increase (if applicable)
• Maintenance or Renovations undertaken

Rental increases are significantly impacted by the supply of properties and the demand of tenants.

In times of higher vacancy with reduced tenants seeking properties, then increasing rent may not be justified.  Albeit, if there is a shortage of rental properties, or the property has been improved, the rent will generally rise.

Should you wish to discuss the issue of rental increases in further detail, please contact your Tenancy Manager today!