rental increases

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

We asked the former director at Rent Choice, Caroline Nurse, for an answer to this query:

“You cannot do rent increases 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. 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 rent increase.”

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Caroline Nurse
Caroline Nurse

Caroline Nurse was the Director of Rent Choice in West Perth, Western Australia. Caroline worked in the property industry for more than 13 years. Her background included property investment, residential rentals, real estate sales, residential land development, new home construction and renovation. Caroline held a Triennial Certificate as a Real Estate Licensee and completed a Bachelor of Commerce and a Diploma of Project Management. She has previously worked with Terranovis as a Development Manager.