By Property Manager, Duncan Cameron.
Whether you’re a landlord looking to maintain your investment’s profitability or a tenant searching for a worry-free home, understanding rent increase rules is key. This guide clarifies the regulations surrounding rent increases with Flemings Property Services Property Management, ensuring transparency and a seamless relationship between landlords and tenants.
For Fixed-Term Agreements under two years
If the lease spans less than two years, landlords can only increase the rent during that period if the agreement clearly outlines the amount or the method for calculating the increase. Ambiguities such as ‘in line with the market’ or ‘by the rate of inflation’ won’t fly. If the fixed term sets out a rent increase, landlords do not have to give written notice before the increase can take effect.
Renewing a tenancy
When renewing a tenancy with a new fixed-term agreement, the rent can’t be raised just because the agreement sets a higher rent. Legislation directs that tenants are provided with 60-day notice before any rent increases. A 60-day notice that specifies the increased amount or the method used for calculation may be in the form of a letter or a scheduled rent increase within a lease agreement.
For Fixed-Term Agreements of two years or more
For leases extending beyond 2 years, rent adjustments are restricted to a once-per-12-month interval. Landlords or their agents are required to furnish a minimum of 60 days’ written notice before implementing any such increase, unless the lease agreement notes the specific date for rent adjustments.
Understanding these regulations is vital for maintaining a fair landlord-tenant relationship.
If you have any questions or need further guidance on rent increases or any other property management concerns, do not hesitate to reach out to Flemings Property Services. We’re here to assist you in navigating these rules and ensuring a positive rental experience for all parties involved.