When should a landlord increase the rent?

A landlord can increase the rent is when there’s no fixed term. Rent cannot be increased during a fixed term agreement, you can increase it to commence from the start of a new agreement, although that would have to coincide with the leasing process.

When it’s outside of the fixed term, you can increase it at any stage and it’s 60 days’ notice for both of those.

How much should I increase each year?

A typical increase is between five to $10 a week. Sometimes we say $15 increases however, $20 is probably enough for a tenant to pack up their belongings and move to a different house. If you do increase the rent, some tenants will expect work to be done to the property in return so keep this in mind before making any large increases. 

What happens if my tenant leaves?

Your tenant may decide to leave after a rent increase, A lot of the time we actually don’t know until a tenant has given us notice. Most of the time they don’t communicate their concerns about the rent going up and then maybe they want something done.
So, the next step can be sometimes they are putting in their notice. And maybe it’s too late to save that tenancy at that point, but what I would encourage all owners to do is if you’ve got a good tenant who’s paying their rent consistently and they are looking after the house and they don’t have pets that are doing damage and they don’t have extra people living at the home, is to keep them in a house that makes them happy, and if that means a loss of $10 a week rent you’re better off to do that.
I know over the long term it sounds like a lot but when you think of a vacancy costing owners between two to three weeks rent, that can take a lot of time to return that money to you.

If you’d like any more information on increasing the rent please email us at [email protected]

 

Hi, I’m Roseanne Gaut

And I’m Monique Gaut

And we’re from Dowling Maitland.
 
Monique what's, when's the best time for a landlord to increase the rent?
 
The best time for the landlord to increase the rent or we could probably rephrase that as maybe the only time the landlord can increase the rent is when there's no fixed term.
So, he can’t increase the rent during a fixed term agreement, you can increase it to commence from the start of a new agreement, although that would have to coincide with the leasing process.
And it would just be a matter if the landlord if you wanted to do that, to communicate that to the property manager.
When it's outside of the fixed term, you can increase it at any stage and it's 60 days’ notice for both of those.
 
How much should I increase each year?
 
A typical increase is between five to $10 a week.
Sometimes we say $15 increases, $20 is probably enough for a tenant to pack up their belongings and move to a different house.
 
Okay, do tenants expect work to be done if I increase the rent?
 
Tenants do expect something to change.
So, unless the property is undervalued, the tenants will end up finding something else if the property doesn't change any other way, except for the rent amount.
 
What happens if my tenant leaves?
 
If your tenant leaves because of a rent increase.
A lot of the time we actually don't know until a tenant has given us notice.
Most of the time they don't communicate their concerns about the rent going up and then maybe they want something done.
So, the next step can be sometimes they are putting in their notice.
And maybe it's too late to save that tenancy at that point, but what I would encourage all owners to do is if you've got a good tenant who's paying their rent consistently and they are looking after the house and they don't have pets that are doing damage and they don't have extra people living at the home, is to keep them in a house that makes them happy, and if that means a loss of $10 a week rent you better off to do that.
I know over the long term it sounds like a lot but when you think of a vacancy costing owners between two to three weeks rent, that can take a lot of time to return that money to you.
 
Great advice.
 
If you'd like any more information on increasing the rent please email us at [email protected]










 








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