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How much can a landlord increase rent?

June 17th, 2014.

Topics: Landlord Advice
It’s important to review your rents regularly in order to achieve the highest possible return on your investment. As a rule we review our rents every 6-12 months and we recommend issuing a rent increase at least once every 12 months, even if it is just $5. A Tenant is going to be able to budget much better for smaller regular increases rather than receiving an unexpected large $50pw increase and increasing annually means that once the first increase is done the Tenant will just come to expect an increase around that time every year.
 
As to how much a Landlord can increase the rent comes down to several factors including the current market demand in that area and the desirability of the property.  Understanding what the market is doing means checking what else is currently available in that area and seeing how your property compares. Be warned though that a rent increase can be challenged by a
 
Tenant through the Tribunal Court, so you need to make sure that you’ve done your homework and can justify the amount it was increased by. Keeping your property well maintained and enhancing it is a good way to still achieve annual increases even in a slow rental market. Making improvements like adding a heat pump or a dishwasher can add $10pw to $20pw to the rent.
 
As to how often a Landlord can increase the rent, it can be increased every 180 days for a periodic tenancy, if you have a fixed Tenancy then you need to ensure that your original Tenancy Agreement has the correct clause in order to be able to issue rent increases every 180 days within a fixed term period. You must give 60 days’ notice to increase the rent.
 
The great thing with a property manager of course is that they increase rents systematically and Tenants generally expect to receive them. If we can help you determine how much you should increase the rent on your property by, contact us today 09 4763433 for a no obligation chat.  

2 Comments

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