Raising Rent? How to do it right.
The Residential Tenancies Act 2010 outlines the requirements concerning rent payment increases and it is essential for both you as the landlord and us as your property managers, to issue these increases to your tenants according to legislation.
Here are the key points:
Both fixed-term and periodic leases only permit a rental increase once in a 12-month period and both must include the amount and the date when the increased rent will take place. Also, the landlord or agent may not give 60 days notice of a rent increase if the fixed term lease is less than 2 years and states in the agreement the amount of rent increase and the day the increased rent applies. Some mistakes that can occur when issuing the rent increase: Ringing or speaking with the tenant, informing them of the increased rent and when the higher rent will commence. Not taking into consideration the postage time for sending written notice and the letter arriving after the 60 days notice commences. If the notice is sent via a posted letter, the agent must allow 7 business days for the delivery to arrive at the tenant's rental address which then the 60 days notice will commence. When renewing the tenancy fixed term agreement, the rent cannot be increased immediately because notice must be given prior to the higher rent taking action. If the landlord or agent would like to increase the rent directly after the lease renewal occurs, 60 days notice will need to be given prior.
