Rent Increases: Safeguarding Your Property's Value

As a property owner, it is crucial to understand the significance of increasing the rent on your rental property to uphold its value. Rental properties require regular maintenance and upkeep, and increasing the rent helps cover the expenses associated with property upkeep and maintenance, taxes, and other overheads. This approach ensures that the property remains financially viable and retains its value in the long run.

Keeping the rental income in line with the cost of living and rental market trends can also help landlords maximise their returns. The rental market is subject to fluctuations based on changes in economic conditions, supply and demand, and competition from other rental properties. Therefore, landlords must stay up-to-date with market trends and adjust their rental rates accordingly.

In Western Australia, landlords are required by law to give a statutory notice of 60 days to their tenants regarding an upcoming rent review unless it is a new lease which is then 30 days. This notice must be provided in writing and should clearly state the date on which the rent increase will take effect. Giving tenants sufficient notice ensures that they have enough time to prepare for the rent increase and make any necessary adjustments to their budget.

It’s important to note that failure to provide the required notice can have legal consequences and could potentially invalidate the rent increase. As a landlord, it’s your responsibility to ensure that you comply with the legal requirements for rent reviews and communicate any changes to your tenants in a clear and timely manner.

In addition to providing notice, it’s also important to maintain open communication with your tenants throughout the rent review process. This includes responding to any questions or concerns they may have, and providing them with information about the factors that have led to the rent increase, such as changes in the rental market.

Landlords can increase rent by CPI, percentage, or a fixed amount, subject to certain conditions. The percentage or fixed amount must be reasonable and not excessive, taking into account the current market rates for similar properties in the area, and the condition and amenities of the property.