discobay

A friend has asked me to check her rental contract and until I see it this weekend I thought I would ask this. Her agent has recently changed and the new one is increasing her weekly rent from $375 to $450. An increase of $75 seems steep to me. Are there guidelines to the percentage of rent increase allowed? I've looked at REIWA's website but the FAQs don't help me.

rockpeblar

I thought it was a maximum of 5% in any 6 month period

Bermudashorts

Seems very steep indeed. I have no idea about the law though sorry.

JAMFC

Depends if your friend was paying under market value. If the increase puts the rent at market value then I believe that is ok.

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knockoff nige

Who says whats market value on rent? Oh yeah, the real estate agents.

I believe 6% increase every 12 to 18 months is about normal. But also a rip off.

chris955

I don't think an increase of 20 odd % is legal or justified regardless of the market.

discobay

Well that's sufficient feedback for me to give REIWA a call but I'll hold off until I see my friend's tenancy contract at the weekend.

roaringmouse

Checking what the equivalent of the Residential Tenancies Act is in WA would be the first place to look. Any clauses in the tenancy that contradicts the Act would be unenforceable.

An increase from $1,625 to $1,950/month would seem unreasonable in my opinion. Potentially an attempt to encourage the tenant to leave.

pumpkin blossom

I checked for SA and was told there was no official amount. They said that they can look at what other simular properties in the area are being rented at and change it to simular.

Amazulu

Surely the landlord can charge what he wants, whether it is market rate or not?

If you don't like the rent, then move somewhere else.

knockoff nige

Hardly a fair solution when someone is living in this place. Home ownership is not a possibility for everyone. Having to move to another property because you have a greedy landlord is not good.

Amazulu

Not good but there it is.

We live in a world of free choice.

discobay

When the contract has expired yes. I believe that the lease has some time to go and that the new agency has brought in the rent increase.

Amazulu

Then that's not fair, and would a normal rental lease allow for this?

discobay

We're speculating here and I would need to see her contract first.