Rent Increases -

What You Should Know

If you are renting, being advised your rent is to be increased is never good news. Whilst this can be a very touchy subject for the tenant, they should bear in mind it may be unavoidable. Landlords have all sorts of costs to take into account when they own a rental property. An increase in land rates, mortgage interest rates, repairs required on the property and, where applicable, rises in body corporate fees, can all affect their decision to raise the rent. Whether you own a rental property, or a renting a property, you should make yourself familiar with the rights of each party.

Increasing the rent, what steps will be taken.

Real estate Sydney rental laws are outlined on the NSW Government fair trading website for anyone to view. It states that t is required that tenants need to be advised in writing at least 60 days beforehand of an intended rent increase. A further four days needs to be added to this time frame if the notice is being sent by mail, this will allow for the tenants to receive notice in plenty of time. A rent increase can only be done after expiration of the fixed term period agreement. When the notice is received by the tenant they should be able to clearly see the new rental amount and the day in which it is expected to commence. In the event the rent is to be increased while a fixed term tenancy is in place, the signed rental agreement must contain an additional term displaying the amount the rent is to rise and still allow for 60 days notice.

Disputing a rental increase.

Where tenants feel a rental increase is unreasonable, they can take steps to challenge it. If a tenant would like to negotiate or refute an increase they may do so by showing evidence of market rents in that area or show that improvements have been done by them to the property. If the tenant feels the property is not worth the increase, they may be able to request reasonable improvements be carried out to warrant the rent increase. A clear, concise letter must be presented stating reasons why the increase is being disputed and if the landlord agrees to lower the amount or withdraw the increase, this must be done in writing. If a new rental amount is offered and accepted, the date of effect will be the same date as the first notice, another 60 days notice is not required.

Tenants can also make an application within 30 days of the notice to the Trader and Tenancy Tribunal to have increases reduced or withdrawn. Discussing your options with property management Sydney agents will help you gather information about the current market and decide which decision is best.

Return to HOME page