Rental Increase Procedure
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1 Rental Increase Procedure Purpose of the Procedure To ensure that secure tenancies are maintained and Lessor Clients rent returns are maximised. Notes This procedure is based on access to the following: Property Management software that has a computerised diary facility attached to the properties under management. If no computerised diary facility is available, action steps and conversations should be recorded in the relevant paper based files. The timing of the various action steps in this procedure is based on QLD Residential Tenancy legislation. There are references in this procedure to specific staff members in relation to specific activities. In some agencies, these roles may be performed by another member of staff or the title may be different.
2 Rental Increase Policies 1. The Lessor Client must, be notified prior to a rental increase. 2. Hard copy rent increase letters must be sent to the Tenant. 3. Tenancy information on the computer must be updated as soon as the rent increase is issued. 4. s must abide by legislation regarding rent increases during the tenancy, and at lease renewal time. 1. At least 2 months notice in writing (plus postage and delivery days) is required for a rent increase, if the fixed term has expired. Rent cannot be increased less than 6 months since the last rent increase. 6. Rent may only be increased in a fixed term tenancy if the tenancy agreement allows for it (i.e. an additional term to that effect). One Month s notice in writing of the increase must be given in this scenario. 7. Ensure that rental increases can be justified. Tenants may apply to the Small Claims Tribunal if they consider the rental increase to be unreasonable. 8. , is the preferred form of communication (unless specifically instructed otherwise). 9. Where there is a reference made to the use of a particular letter to a Lessor Client or Tenant in the following procedure, it is possible to replaced or used in conjunction with a phone call or . Providing the date, contents of the call/ and the Lessor Client or Tenant s responses are clearly recorded in either the Lessor Client or Tenant section on the computer (whichever is appropriate). 10. All documentation sent or received in relation to a managed property is to be dated (received or sent) and filed appropriately (soft copy preferred). 11. All actions and/or communications in relation to a managed property are to be recorded in the appropriate section of the computer. The date, details and people involved are to be recorded. 12. QLD legislative and Management Agency Agreement requirements must be met at all times. 13. All Agency partners must act in the best interests of the Lessor Client at all times. 14. Any variation that is required to the approved Agency Policies and Procedures must be approved by the Department Manager. 15. Standard Agency checklists, letters and forms are to be used and updated at all times.
3 Documents used in this Procedure Forms Comparative Rental Analysis Rental Increase Checklist Form19 Form63 Letters Renewal & Rent Review - No Rent Increase & No New Agreement Rental Increase - Advising 2 months Notice Given Rental Increase - Advising New Tenancy Agreement Rental Increase - Advising No New Tenancy Agreement Rental Increase - General Letter Rental Increase - Inviting Tenancy Agreement Renewal Rental Increase - No New Tenancy Agreement Rental Increase - Not Approved Rental Increase - Recommendation Rental Increase - Rental Amount To Remain The Same Rental Increase - Seeking New Tenancy Agreement LL54 LL78 LL47 LL49 LT39 LT19 LT35 LL83 LL82 LT73 LL38
4 Procedure Steps Step 1. Rental Increase Recommended Forms and Letters used in this step: Letter LL82, Form19, Form Rent Increases are carried out in the following situations: - Expired or expiring Tenancy Agreements - Periodic inspections - Requested by the Lessor. Step 2. Lessor - Approved Forms and Letters used in this step: Letters LL49, LL54, LL Confirm the Lessor's instructions. Step 3. Rent Increase Notice Served Forms and Letters used in this step: Letters LT19, LT35, LT39, LT Prepare and send appropriate letter to the Tenant within 7 days of the Lessor s approval. 3.2 Ensure correct notice periods given as per legislative requirements. 3.3 Update the computer to reflect the change in the rental amount and the date it is to occur. Step 4. Confirm Rental Increase Issued With Lessor Forms and Letters used in this step: Letters LL38, LL47, LL Confirm the Rental Increase Notice has been issued with the Lessor 4.2 Advise the Lessor if the Tenant disputes the increase and provide the Lessor with the Tenant's reasons.
5 4.3 If the dispute cannot be resolved, the Tenant may apply to the Small Claims Tribunal.
6 Audit Check List - Rental Increase Procedure Date of Audit: Person conducting Audit: Reason for Audit: The following Documents where checked as part of this Audit: Document Name Number Comments The following other materials/aspects of this Procedure were checked as part of this Audit: Details Comments Step Result 1 - Rental Increase Recommended 2 - Lessor Approved 3 - Rent Increase Notice Served 4 - Confirm Rental Increase Issued With Lessor
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