Hi guys,
I am not sure if this is the right place as most of you would be on the other side of the fence but you guys can give me very relevant advice.
I am renting a unit in Sydney for almost 18 months and just got a letter from my agent asking for a $15 increase in the rent which is third rent increase in a year (started from $280, then $290, then $300 and now asking for $315). On top he is asking for signing a new 1 year fixed lease. I had a 6 month lease initially and then no fixed term lease.
Two questions:
1) Can landlord increase rent as frequently as he likes or is there any law?
2) Can landlord ask an existing tenant to enter into a new fixed term lease or is it optional?
Would appreciate the help.
As you are not on a fixed term of a lease the landlord can increase the rent as many times as they feel necessary each time giving 60 days notice – if you feel that the increases are not warranted you can enter a dispute at the dept of fair trading.
Entering into another lease is optional however it does have benefits for both parties – for you, there will be the security of knowing that you have the premises for another 12 months, rent will remain at the commencing rent unless you agree to another increase (on the lease) during the term. You cannot prematurely end the lease, currently you can give 21 days notice and the landlord can give you 60 days notice to vacate.
For the landlord there is the security of knowing the place is leased for another 12 months.
I prefer to continue with the tenant being on a new lease so that we both have some security over the period
Thanks Scott,
This is a great advice. Does the notice period remain same for both Fixed and continuing lease agreements. My understanding was that with a Fixed agreement reduces the notice period from 60 days to 14 days. If that's not the case, then I am very happy to sign a Fixed lease for a year.
Please clarify.
Unless you breach the lease it cannot be terminated prematurely ie before the year is out. That said, the landlord can give a shorter period of notice prior to the expiry of the lease for vacant possession. refer to http://www.fairtrading.nsw.gov.au for your rights
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