Australia is currently experiencing skyrocketing rents, leaving landlords wondering how often and by how much they can increase the rent on their investment properties. The answer to this question has two parts: how often you can increase the rent and how often you should. While there are legal limits to consider, such as providing notice and following local regulations, it’s also important to use market knowledge and common sense to ensure planned increases are in line with local medians and supply. Additionally, landlords should aim to avoid lengthy periods of vacancy or losing reliable tenants. Understanding the rules and regulations specific to each state is crucial. In most states, there is no legislation in place to regulate how much rent can be increased, so it is generally determined by what is considered “reasonable.” However, tenants have the right to challenge proposed rent increases if they find them unreasonable. Landlords should carefully consider whether a rent increase is beneficial in the current market environment. Factors such as local supply and demand, median rents in the area, and vacancy rates should be taken into account. It’s also important to consider the quality of your tenants and the relationship you have with them. Regular, smaller rent increases are less likely to drive tenants away and can help protect the viability of your investment property while keeping it affordable. Ultimately, landlords should strive to maintain a balance between maximizing returns and keeping reliable tenants in their properties.
