If you’d like to increase the rent on your investment property you’ll need to serve the tenants with a valid rental increase notice.


There are three things a notice of increase of rent need to include in order to be effective.


The first one is that it must specify the proposed new amount of rent, not the amount of the increase.

What you have to say is, “Your rent is increasing from $240 a week to $260 a week.” It can’t say, “Your rent is increasing by $20 a week.” You have to be really specific about that.


The second thing a notice needs to include is the date when the increase becomes effective.

It’s important to note that you have to give 60 days notice for an increase, plus if you’re posting the notice, then you have to allow an extra four days at least for postage. You need to sit down and calculate that properly, otherwise, the notice can become invalid. Even a few years down the track, if the tenant even has paid the increased rent, they can call that back on the basis that the notice was invalid to begin with. I’ve seen it happen. Be really careful with your dates.


The third thing the notice must be is signed, dated, and properly addressed to the tenant.

You must ensure that you’ve signed the notice as the landlord, you must ensure that is dated the date that you have written the notice, and it has to be properly addressed to the tenant. The notice is addressed to the exact same person or people that the lease is made out in. So, it’s Mr. Andrew Smith and Mrs. Amelia Smith, the notice must say Mr. Andrew Smith and Mrs. Amelia Smith.


One thing that you should know about rental increases. Now, if you’ve entered into an agreement that’s less than two years with a tenant and there is a clause in the lease saying that the rent can be increased on, let’s just say, the 30th of June from $240 to $260, you still, even though it’s a clause in the lease and the tenant has signed it, you still must give the 60 days notice, even though it’s already in the lease. Be careful of that one. It’s really important. It can invalidate that clause in your lease if you don’t give the correct notice, even if it’s in the case.


Happy Renting!



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