Maintaining and running a quality rental property is never a cheap task. But when the costs of doing so start rising, sometimes your only option is to increase the rent. There are, however, tenant protection laws in place that landlords need to follow in order to make any rental increases both lawful and fair to the occupants of their real estate in Bunbury.
Here's what you need to know before increasing the rent you charge.
For a rental agreement that has fixed beginning and end dates, rent can only be increased when the method for how is included in the tenancy agreement. For example if you're planning to increase rent according to inflation, this is something you need to include before the agreement is signed. If you're using a formula that increases the rent periodically based on some other criteria, that too must be included.
Increases can only happen six months after the beginning of the tenancy or the previous rental increase. You also need to give 60 days notice before a rental increase can be effected.
For a rental agreement with no fixed end date, the rules are broadly similar. Six months must have passed before the first increase and rent can be increased every six months thereafter, with 60 days notice before doing so. The notice must include the amount of the increase as well as the day on which it comes into effect. Note that you need to use the correct forms (available on the WA government's website) otherwise the tenant may not legally have to pay the increased amount.
The rules change somewhat at the renewal of a fixed term tenancy. If the current tenants are agreeing to stay, the rent can't be increased for the first 30 days of the new rental agreement.
Considering rental increases is just one of the many tasks owners of Bunbury rentals need to think about. With a property manager from Ray White, the task becomes a whole lot simpler. While you still have the final say, we'll periodically conduct rent reviews to see whether you should be charging more. To learn more about our property management services, get in touch with a member of the team today.