Rent reviews are a core part of running a successful investment property, and in today’s rental market, they require a smart, data‑driven approach. With rental supply rising and tenants more price conscious, landlords can still lift rents — but increases need to be aligned with market conditions and communicated well.
Current legislation allows rent increases once every 12 months with 60 days’ notice, and while there’s no cap, rents must remain within fair market value. Typical adjustments sit around 3–5%, but the real benchmark comes from comparable listings, rental data tools, property condition, and how easily your tenants could relocate.
Consistent, modest annual increases are more effective than infrequent large jumps, and timing matters. Tenants can cope better with a $20 increase annually than an $80 jump after a few years. Rent reviews work best at lease renewal, after improvements, or during high‑demand seasons. They’re less effective part way through a fixed term, or immediately after maintenance issues. An increase is not advised if there are current unresolved maintenance issues.
Clear communication is essential. Giving tenants early notice, providing a simple rationale and avoiding emotional or defensive explanations helps maintain a positive relationship. In a softer market, retaining high‑quality tenants can be more valuable than pushing for maximum rent — especially when vacancy and turnover costs quickly add up.
Working on an average rent of $750 per week - If your tenant vacates you could be faced with a couple of week’s vacancy ($1500) , cleaning ($200), advertising and letting fees ($750), minor repairs / smoke alarm check ($250) which could add up to $2700. Negotiating a slightly lesser increase could mean more money in your pocket than stubbornly sticking to the $40 per week increase.
Landlords and tenants can agree to increases sooner than every 12 months when genuine improvements or beneficial changes are made, provided the new rent still reflects market value. If tenants question an increase, evidence‑based comparisons and calm discussion usually resolves concerns.
In today’s environment, successful rent reviews rely on professionalism, market awareness, and a balanced approach that protects both your asset and your tenant relationships. Strategic pricing, strong communication, and well‑maintained properties remain the keys to long‑term investment performance.