It seems there are constant legislative changes which effects the nature and performance of your investment properties, not to mention financial market fluctuations! The most recent legislation introduced is the new Residential Tenancies and Rooming Accommodation Act 2008 which came into effect on 1 July 2009. One of the significant changes, and little understood, is that of applying rent increases to existing tenants. So, let me simplify this for you.
- · Periodic Tenancy – 2 Months Notice in writing of any Rent Increase
- · Fixed Term Tenancy nearing completion and offering a new Fixed Term Agreement Increase can take effect immediately upon commencement of the new term offered, provided the new Tenancy Agreement is entered into before the current agreement expires. (If the current lease expires it immediately becomes a Periodic Tenancy and the two months notice applies.)
- · During a Fixed Term Tenancy – Rent can only be increased during a fixed term agreement if it is negotiated at the commencement of the tenancy and clearly written into the tenancy agreement. The increase must state the actual amount the rent will increase by or how the rent increase will be calculated. (The owner/agent is still required to provide two months written notice of the increase.)
· Regardless of any Tenancy Agreement, there must be a minimum of 6 months between rent increases.
We will always seek your instructions in writing with regard to Tenancy Renewals and Rent Increases and ask that you keep in mind the critical time frames to ensure the best return on your investment.
As always, any one of our team can assist you with any questions you have regarding the rental market here in South East Queensland and of course the laws that govern residential renting in Queensland.
Here’s to your success!!