Navigating Lease Renewals and Rent Increases
Lease renewals and rent increases can sometimes be complex matters, especially when negotiating with existing tenants. At Peak Central, we understand the importance of clarity and transparency throughout this process. Allow us to shed some light on understanding lease renewals and rent increases to ensure a smooth transition for both landlords and tenants.
When it comes to negotiating a rent increase and lease renewal, it’s crucial to pay attention to the details outlined in your lease agreement. While the new weekly rent may be clearly stated in Part A of the lease, we want to draw your attention to an important clause in Part C regarding the tenant’s obligations.
Understanding Part C – Tenant’s Obligations:
In Part C of the lease agreement, specifically section 2.3, it states that the rental amount under the lease will be the amount stipulated under the “Rent” heading in Part A. However, in compliance with section 31B of the Act, which requires landlords to provide 30 days’ notice of any increase in rent, there is a provision regarding the initial payment of rent.
Until the specified date (which marks the first 30 days of the term of the new agreement), the tenant is only required to pay rent equivalent to what was paid under the former agreement. This ensures that tenants have adequate notice and time to adjust to any changes in rental amounts.
Put plainly, the new rent amount will start 30 days after the new lease starts. If the new lease starts in March, the rent increase will take effect in April.
Navigating the Lease Agreement:
We understand that lease agreements can be lengthy documents, spanning up to 17 pages and including currently 51 special conditions drafted by Peak Central. The team is dedicated to assist our clients throughout the process, ensuring that negotiations are conducted efficiently and in compliance with the requirements of the Act and the agreement.
Our goal is to make the leasing process as seamless as possible for both landlords and tenants. If you have any questions or require further clarification regarding lease renewals, rent increases, or any other aspect of your lease agreement, please don’t hesitate to reach out to our team. We’re here to help and guide you every step of the way.
At Peak Central, we prioritise transparency, communication, and adherence to legal requirements to ensure a positive rental experience for all parties involved.
