A recent CoreLogic study shows that Sydney will be dethroned as the most expensive city in Australia for renting a home. So, if you are a city owner who plans to increase rent before the market value goes down further, keep in mind that this may increase your income or scare away tenants.
The first thing to do is to evaluate the market. Rental prices are determined by the law of supply and demand. The more people are willing to rent a property and the fewer rental properties available, the easier it is for homeowners to raise their values.
But if this move displeased tenants? One of the ways homeowners recommend to determine if they can raise the rent without losing their tenants is to compare the asking price with the rent of similar properties located in the vicinity. If others charge more, there is a good chance that they can raise their rent.
But the most important piece of the puzzle is knowing when to raise the rent. In most states, including New South Wales (NSW), homeowners are only allowed to increase the rent after the end of the period of validity of the agreement.
Plan Your Rent Increase
Landlords are not allowed to increase rent in New South Wales during a fixed-term contract of less than two years, unless a term describing the future increase has been included in the contract. initial rental.
The term must specify the exact dollar amount of the increase, or explain exactly how an increase will be calculated. For example, a percentage must be provided.
Under a fixed-term contract of more than two years, the rent may be increased at any time, provided that the required notice is distributed. However, homeowners can not increase the rent more than once every 12 months.
In the absence of written agreement, homeowners can not increase the rent during the first six months of the tenancy.
It is also essential to indicate in the letters to the tenants the amount of the rent increase and the effective date of this increase.
With interest rates at their lowest for over 50 years, there are excellent rates available. The best thing to do is to compare the rates of all the lenders. Let us help you solve this problem – Compare home loans now
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