Staying a notch higher than the regular rental rate can be pretty tough sometimes. However, if you want to stay afloat in the business and gain additional profit then you must not have second thoughts about increasing the rent, more so when you know the market warrants an increase.

Raising the rent is never easy. You might fear that it’s going to drive your tenants out but it’s to be expected. The rental industry is adapting and growing along with the economic changes. You’re just going along with the tide so it’s perfectly normal.

In case you have questions about rent increases, this might be an interesting read.

Rent Increase on a Periodic Tenancy

If your tenant is on a periodic tenancy, you can increase the rent provided that you give a written notice for a minimum of 2 months which can be given to the tenant at any time. On the other hand, the rent increase could only take effect 6 months after they started paying the current rent amount.

Rent Increase on a Fixed Term Tenancy

Rent increase is allowable on a fixed term tenancy but only under the following circumstances:

  • The property manager or landlord is able to provide a minimum of 2 months written notice.
  • The increase does not take effect sooner than 6 months after the tenant has paid the initial rent.
  • The rent increase was included on the signed tenancy agreement as a special term where the amount of the increase, the effectivity date and the process of implementing the increase is also stipulated.

Form Used to Notify Rent Increase

The RTA has not provided any standard form to notify rent increase. The notice must only indicate the amount of the increase and the day from when it is payable.

Here are some scenarios you might be able to relate to:

A three-month tenancy has been previously negotiated. Now, the end of that agreement has been reached and new tenants will commence a new agreement. The previous tenants were only paying the rent for less than 6 months, but the lessor wants the new tenants to pay a higher amount compared to what the previous tenants were paying. Is it possible?

Yes, this can be done. The new tenants can be charged the higher rent from the beginning of their tenancy.

A tenanted property has been sold to a new owner. As the current rent amount has been agreed upon by the tenant and the previous owner, the current owner now wants to increase the rent. Can they do this?

Regardless of a change in the property ownership, rent increases still follow the same rules. It would then depend on the type of tenancy established and how long the tenants have been paying the current rent amount.

A three month tenancy has been negotiated. At the end of the tenancy period, a new three month agreement is being negotiated with the same tenants but with a higher rent this time. Can this be done?

No. Since you are negotiating with the same tenants, the six month rule on rent increase still applies. The tenants cannot pay the increased rent sooner than 6 months after the previous rent amount has been established.

What if a tenant objects to the rent increase?

If a tenant does not agree to a rent increase after being notified of it, they are entitled to apply to QCAT within 30 days before the end of a fixed term.

*Rent increases are covered by Sections 91, 92 and 93 of the RTRA Act.