Current Process Of Rent Increases

The method used to review currently depends on the type of tenancy. 

For fixed term tenancies, rent can be reviewed through a rent review clause included in the tenancy agreement.  Alternatively, after the fixed term has ended, rent changes can be made by mutual agreement between the landlord and tenant. 

For periodic tenancies, rent increases are typically carried out using a formal process known as a Section 13 Notice, which allows landlords to propose new rent once per year. 

What’s Changing?

The proposed Bill introduced a single, standardised method for rent increase across all tenancy types: the Section 13 Notice. Once the Bill is enacted rent review clauses will no longer be enforceable.  All rent increases must be issued using a Section 13 Notice and rent reviews will only be permitted once per year. 

Understanding The Section 13 Notice

A Section 13 Notice is a prescribed form that landlords must use to propose a rent increase. This will become the mandatory procedure for rent increases once the new law is in effect. The Notice will require details of the tenancy, the current rent amount, and proposed new rent.

Challenging A Proposed Rent Increase

Under the proposed legislation:

• If a Tribunal upholds the landlords proposed rent, the increase cannot be backdated. 
• The Tribunal will also have the power to delay the rent increase by up to two months if a tenant faces undue hardship. 

Rent Increases And Renewing a Residential Tenancy 

Landlords can access a range of professional resources to assist with rent reviews and Renewing a Residential Tenancy within Property.