Tenants And Landlords Guide To Rental Increases

This article will briefly outline what is expected of all parties when rent is to be increased. Whilst it is never the kind of news a tenant wants to hear and can cause some distress, the raising of rent is more often than not inevitable. What a tenant needs to take into consideration is the landlord is responsible for bills that may increase relating to the rental property. This can include a rise in mortgage rates, increased body corporate fees, land rates and any maintenance and repairs that need to be carried out on the property.

Increasing the rent, what steps will be taken. -

Real Estate 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also make an application within 30 days of the notice to the Trader and Tenancy Tribunal to have increases reduced or withdrawn.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 agents will help you gather information about the current market and decide which decision is best.

About the Author

Prudential Real Estate http://www.prudential.com.au/ have agents ready to answer all of your
property management Sydney
and
real estate Sydney
questions. Being familiar with rental laws such as rent increases will ensure renting runs smoothly for all involved.

3@64 Crown Road, Queenscliff, NSW,Northern Beaches, Sydney, Australia, Buy Sell Real Estate property

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