Rent Explained

Rent reviews and increases
For most tenancies, the rent cannot be increased within 180 days from the beginning of the tenancy, nor within 180 days from the last rent increase. Your Property Manager must give at least 60 days’ written notice to increase the rent. There is no limit as to how much the rent may be increased, providing that any increase is not excessively above ‘market rate’. Rent can only be increased during a fixed term tenancy where provision for this is written into the tenancy agreement, and the same time frames apply.

Rent in advance
This is a concept that can be misleading due to it’s title and often creates confusion for tenants, especially at the end of any lease. ‘Rent in advance’ doesn’t mean that you have paid a lump sum of rent and therefore do not need to pay rent in your last week(s) of a tenancy, it refers to the concept and obligation of a tenant to pay their rent before it comes due.  For example a lease that began on Wednesday 4th September and ‘one weeks rent in advance’ has been paid- this simply means that the tenant has paid the first weeks rent for the period ending on Tuesday 10th September. To ensure the rent is received by the Property Manager before it is due, the next payment would be due to come out of the tenants account on Tuesday 10th September to ensure it reaches the property manager by the 11th. This then covers the tenant up until and including Tuesday 17th.

For example: If the tenant had been in the property for some time with this weekly payment system and had handed in their notice to leave, with the final day being Saturday 21st. They wouldn’t be a week in advance or not needing to pay for the final week, they would still owe 4 days rent and this is where often the confusion can arise. Another way of looking at this is if you were to go into a dairy to buy a can of soft drink then drink the contents before paying for it – you’d probably find the dairy owner may not be too pleased. You always pay for something first, then consume it afterwards. Paying ‘rent in advance’ is exactly the same – you purchase the time period in advance and then consume the time period by living in the property – or in other words: ‘pay before you stay’.