Also see Rent Increase Agreement page.
How can rent be increased?
Rent is the amount of money a tenant pays to you (the Landlord) regularly in return for staying at your premise. The amount of rent, how often it is paid and the method in which it is paid is agreed upon before the Tenancy agreement commences and should be clearly stated in the appropriate spaces provided. Rent payments are GST free. The method of payment cannot be changed during the agreement period unless the tenant agrees.
A Landlord cannot pass on any fees or charges received by a third party for accepting payment from a credit card, deposit book or if the tenant pays the rent at a post office or bank.
Challenging Rent Increases
Tenants have the right to dispute the increase, therefore written notice is important, and should clearly explain your motivation behind the increase, provide evidence such as interest rate hikes, evidence of market rents in your area or improvements you have made to the premises that benefit the tenant.
If a tenant thinks your proposed rent increase is too high then:
Negotiate: Simple negotiations between the two of you will help you both arrive at an amicable amount of rent to be increased, that is fair to both parties.
Both parties could decide on a lower rent increase or decide on some other jobs on the premises such as painting, landscaping etc the tenant can provide to offset the increase.
Remember the cost, time and effort involved in sourcing new tenants, it is in your best interest to look after the one you already have, in turn they will hopefully look after you.
There is no need for any new notice period for changed rent increase. It becomes effective from the original date of increase.
If an agreement cannot be negotiated and the tenant still feels the rent increase is too high, and not in conformity with rents of similar properties in the area, they can send an application to the relevant Tribunal.
Tenants have to prove the increase is excessive. The Tribunal will do a comparison and gather independent evidence available in properties of similar size, within the same location and other relevant information.
NSW, QLD, VIC, WA, NT, TAS: When a fixed term tenancy agreement is active rent cannot be increased unless you stipulated a rent review will take place on the special terms and conditions of the Tenancy Agreement.
There must be at least 6 months since the last increase, no matter what type of agreement tenants are on. Landlords must give tenants 2 months (60days) (30 days NT) written notice of a rent increase during an agreement.
QLD: Rent Increase Notice
You may also ask the tenant to pay more bond. Notice of bond increase can only be given if it is at least 11 months since the last bond increase, you must give 1 months notice about the bond increase. The extra bond must be lodged with the RTA using either a Bond Lodgement – form 2 (PDF 109kB) or Part Payment of Rental Bond – form 7 (PDF 87kB).
TAS: Rent Increase Notice