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Landlords and tenants are under pressure due to factors such as increasing mortgage rates, a heated rental market, and higher prices for daily essentials. Raising the rent can be a sensitive issue, but landlords may need to adjust rent in response to changing market conditions and financial considerations. However, landlords need to know the rules about rental increases, including insurance matters. Insurance providers are concerned because rent increases may lead to tenant actions affecting the rental property, which can result in insurance claims. Landlords should ensure that lease agreements and rent ledgers are updated to support any claims for rental losses. They should also make sure that the rent charged is within the insurance policy limits. Finally, landlords should act lawfully and familiarize themselves with the rules around rent increases in their state or territory before making any changes.

In Victoria, rental providers must give tenants 60 days’ notice of a rent increase and provide information on how the increase was calculated. For periodic agreements that began before June 19, 2019, rent cannot be increased more than once every six months. For agreements that became periodic on or after June 19, 2019, rent cannot be increased more than once every 12 months. Rent cannot be increased during a fixed-term agreement unless it is provided for in the tenancy agreement, and the renter must be given at least 60 days’ written notice of the increase. For agreements shorter than five years, rent can only be increased if it is provided for in the rental agreement or at the end of the agreement. For agreements longer than five years, rent can only be increased once every 12 months if the agreement allows for it.

 

The following article serves solely for informational purposes; readers are strongly advised to conduct their own research and seek professional guidance before making any real estate-related decisions, as the content may not be exhaustive or applicable to all jurisdictions, and neither the author nor any affiliated parties can be held liable for any consequences arising from its use.

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