“Should I expect the rent to go up every year that I renew my lease?” Tenant, NSW
We asked MMJ Real Estate Dapto , Laura McDiarmid for her advice.
“Having the expectation that the rent will go up at the expiration of your lease will only cause worry about something that hasn’t happened yet, and take you away from enjoying living in your rental property,” Laura said.
“Rent increases are approved by the landlord. Each landlord is vastly different.”
“Some, in fact, are not concerned with the financial income as such, and more about having a good quality tenant that pays on time, and having their property leased 100% of the time.”
“Other landlords, however, really do rely on the rent increases as their costs increase. Their ‘costs’ meaning rates, mortgages, insurances, maintenance and other outgoings.”
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“On the flip side,” Laura said, “some rents need to increase to the value of the surrounding market. This is all done so with the approval of the owner and then the managing agent will facilitate the landlord’s needs as instructed.”
“So my advice is to not have the expectation that the rent will increase at each expiration, however, understand that if it does, it’s not a personal act against you, more so an economic business decision from the landlord.”