I need to increase the rent in my rental. Usually I do this when the property changes tenants. The present tenants have been there for two years and rent has fallen behind the market rates. I am not sure how to word a letter or if there is anything else I should be awware of. Any help would be appreciated please.
Do you self manage?
You will need to meet certain time frames depending on your state. Check with your Department of Fair Trading.
As far as wording goes I would keep it business like and simply state the issue at hand. No need to justify anything although you may wish to point out current rental estimates from local real estate agents or such.
I am sorry I don’t have an example letter to show you. Perhaps someone else here has one they used?
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
First thing is to contact your states Dept of Fair trading to find out how many days notice you have to give the tenant before the increase takes place. In NSW for example is 60 days plus four days postage.
When I have a copy of our offices examples of letters to increase rent I will post them on this site.Sample Letter:
The costs on the above mentioned property have increased since your tenancy commenced on (date)Taking this into consideration and having regard to current rental levels, an adjustment to your rent is considered necessary.
Accordingly, we advise that as from (date) the rent will be $rent per week/fortnight.
Legally there is no necessity for a new tenancy agreement to be entered into. However, should you require a new agreement we will contact the landlord on your behalf. (Take out and adjust to your needs).
Hope this helps a bit. Make sure that you comply with state tenancy laws.
There are numerous formats of course, they each must satisfy the local legislation to be valid.
It’s a legal letter with strict legal requirements. Otherwise it’s invalid, and can be later challenged, and in the event of a successful challenge, you may have to repay the amount of “invalid” rent increase for however long you’ve been charging it. Here’s the format I used to satisfy legislation in NSW. It’s just factual and makes no attempt to soften the arrival of a rent increase.Date : 12 th June 2004
To : John & Mary Smith
Mailing Address : 27 Green St Taranaki
Premises : 27 Green St Taranaki
Re : Notification of Rent Increase.
You are hereby notified that the rent on the abovementioned premises you occupy will be increased to $250.00 per week effective from the date of 16 th August 2004 in line with current market levels. This provides more than the required 60 days notice, and coincides with your usual rent payment cycle of Mondays.
The last rent increase was on 14 th January 2003.
Please contact us immediately if you have any queries.
Yours faithfully
Joe Bloe
Joe Bloe Real Estatethecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
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