Increasing Rent
Posted on 07. Oct, 2009 by Karen Herbert in Legislations & Laws, Rent
Q: My managing agent found a new tenant for my property and put them in on a 12 month lease. I have had 2 interest rate rises during the first six months they have been there so far, so I need to put the rent up to compensate. My agent says I am not allowed. Is this correct?
A: Unfortunately, your agent is correct if there has been no provisions made for a potential rent increase when drawing and executing the lease documentation. In a fixed term tenancy, the rent can only be increased if both the tenant and the lessor agree in writing. Or alternatively a clause has been added into the ‘special terms and conditions’ of their Tenancy Agreement allowing for a rent increase. The typical clause might read something like ‘the tenant agrees to a rent review after a six month period in line with current market value, or “the tenant agrees to pay a further $10 per week rent after the first six months of the tenancy”. You might like to discuss these terms with your managing agent before the next lease renewal is offered to your tenant
Karen Herbert is the Principal of Position One, based in Brisbane, Australia. For further information or help with renting out and managing your property, please visit the Position One website.
