The property manager/owner and tenant can agree to a rent increase at the end of a fixed term agreement by entering into a new agreement. However, it must be at least 12 months since the last rent increase. There is no requirement to serve a notice about the increase.
If a new agreement is not signed, the agreement becomes periodic (with the same terms and conditions as fixed term tenancy agreement). The rent can be increased by giving:
- at least two months’ notice prior to or on the commencement of the periodic agreement for general tenancies
- at least four weeks’ notice prior to or on the commencement of the periodic agreement for rooming accommodation agreements.
Fixed term agreements
Rent cannot be increased during a fixed term unless it is stated in the tenancy agreement and all of the following occurs:
- the agreement states the rent will be increased
- the agreement states the new amount (or how it will be worked out)
- the property manager/owner gives the tenant at least two months' notice in writing for a general tenancy and four weeks’ notice for a rooming accommodation agreement, and
- it has been at least 12 months since the tenancy started or since the last increase.
The property manager/owner must also give the tenant or resident separate written notice of the increase. It does not automatically come into effect because it is in the agreement. The notice should include the increased amount and the day it takes effect.
Rent can be increased if it has been at least 12 months since the current rent amount became payable and the property manager/owner gives the tenant or resident at least:
- two months’ notice in writing for general tenancies
- four weeks’ notice in writing for rooming accommodation agreements.
If there is a fixed term agreement in place which is to become a periodic agreement, then two months' notice in writing can be given prior to or on the commencement of the periodic agreement. However, the rent increase can only take effect at least two months after the commencement of the periodic agreement.
Excessive rent increases
A tenant or resident can dispute the increase if they feel it is excessive by discussing the issue with the property manager/owner. If the tenant or resident still feels the increase is excessive, they can apply for dispute resolution once the new agreement is signed. They may also apply to Queensland Civil and Administrative Tribunal (QCAT) for a decision.