Reader Question: 

“As a property owner, how often and by how much can you increase your rental property rent, per annum?”

rental increases

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.”

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.”

For information specific to your state or territory, visit Rent.com.au’s Important Numbers page.

We’ll be posting answers to reader questions every week. If you have a question you’d like to see answered here, please send it to marketing@rent.com.au

Related stories

caroline nurse
Caroline Nurse
Director at | caroline@rentchoice.com.au | + posts

Caroline started Rent Choice to address the issues that affected her most as a property investor. The company specialises in property management and focuses on building strong relationships with tenants.

NO COMMENTS

LEAVE A REPLY