“As a property owner, how often and by how much can you increase your rental property rent, per annum?”
We asked Director at RentChoice, Caroline Nurse for an answer to this query:
“Rent increases cannot be done during a fixed term tenancy unless a rent review clause exists within the lease agreement,” Caroline said.
“Rent reviews, whether they be increases or decreases, can only occur at the end of a fixed lease if there is no rent review clause.”
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Caroline said rent changes are usually made in line with market conditions, based on the current rent received for a comparable property.
“In a tight rental market, owners will often increase rents in line with the market activity and in a softer rental market, tenants will request a rent reduction,” she said.
“It’s always important to consider the bigger picture when conducting a rent review. If you have a good tenant who cares for your property and is reliable with their rent payments, you may decide to negotiate a lesser increase to ensure you keep your loyal tenant.”
“Vacancy periods, no matter how short will often outweigh the benefits of a small increase in rent.”
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