RTA Amendment Act 2020: 12 month rent increase

Summary

Rent increases may only occur once every 12 months.

When does it take affect

This takes into affect from 12 August 2020, however, due to the continued freeze on rent increases because of COVID19, IT means that landlords cannot increase rent until after 25 September 2020

What else does it mean?

Section 24 now comes into force on the day after the royal assent and NOT on the 12th February 2021 as outlined in the RTA Amendment Act 2020. The Government has changed its mind and as a result, landlords now have to adhere to the following:

1. Any rent increase notice served before the Royal Assent on 11th August 2020 will be valid provided it met the old law. Namely the 180-day rule and will come into effect on or after the 26th September 2020, in line with the emergency COVID-19 legislation.

2. Any rent increase notice issued after the 11th August 2020 will need to comply with the new criteria namely: It must be 12 months since the beginning of the tenancy AND not sooner than 12 months from the last rent increase.

If a landlord increases the rent or tries to increase the rent during the rent-freeze timeframe, they may be liable for exemplary damages of up to $6,500.

Landlords and tenants can agree to lower the rent temporarily. This could be for a specific time period or until a specific event occurs. Once that time is up, the rent returns to the original amount. Returning rent to the original level is not a rent increase, so is not caught by the rent increase freeze.