Residential Tenancies Act 1986

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24 Rent increases

(1)

The rent payable in respect of any tenancy may be increased by the landlord provided all of the following conditions are complied with:

(a)

the landlord shall give the tenant notice in writing of the increase; and

(b)

that notice shall specify the amount of the increased rent and the day upon which the increased rent shall become payable; and

(c)

the day upon which the increased rent shall become payable shall be not less than 60 days (or, in the case of a boarding house tenancy, not less than 28 days) after the date on which that notice is given; and

(d)

the rent shall not be increased within 180 days after the date on which the last increase took effect; and

(e)

in the case of a tenancy which is not subject to annual rent adjustment, the rent shall not be increased within 180 days after the date of the commencement of the tenancy; and

(f)

in the case of a tenancy which is subject to annual rent adjustment, no rent increase shall take effect—

(i)

less than 60 days (or, in the case of a boarding house tenancy, 28 days) after the notice required by paragraph (a) is given; and

(ii)

other than on the specified date in any year or with effect on the next day on which any rent is to be paid within 28 days after the specified date in any year; and

(g)

a landlord under a fixed-term tenancy—

(i)

may not increase the rent during the term of the tenancy unless permitted by the provisions of the tenancy agreement to do so; and

(ii)

may do so only in accordance with this section and any such provisions of the tenancy agreement; and

(h)

where the Tribunal has made an order under section 25 and that order is still in force, the rent shall not be increased to an amount in excess of the amount specified in the order.

(1A)

The provisions referred to in subsection (1)(g) may take the form of the provisions set out in Schedule 1.

(2)

For the purposes of subsection (1), a tenancy is subject to annual rent adjustment where—

(a)

it is the landlord’s practice (the proof of which shall lie on the landlord)—

(i)

to review the rent annually; and

(ii)

to adjust the rent on a specified day in each year; and

(b)

provision to that effect is included in the tenancy agreement or the tenant is otherwise informed of the practice in writing before the commencement of the tenancy.

(3)

A notice of an increase in rent lawfully given under this section shall, unless it is withdrawn by the landlord, have the effect of varying the tenancy agreement in accordance with the terms of the notice.

(4)

Where a landlord has given a notice to increase the rent and subsequently realises that, because of—

(a)

some error in calculating the day on which the increased rent is to become payable or in the manner in which that day is expressed in the notice; or

(b)

some delay in serving the notice,—

the day fixed in the notice for the increased rent to become payable is in contravention of subsection (1), the landlord may, with the agreement of the tenant or (failing such agreement) with the consent of the Tribunal, give to the tenant a further notice varying the original notice so as to bring the terms of the original notice into accord with the provisions of that subsection.

(5)

Every notice given under subsection (4) shall be in writing, specifying the amount of the increased rent and the day upon which the increased rent shall become payable.

(6)

The Tribunal shall not give its consent under subsection (4) unless it is satisfied—

(a)

that the error or the delay was inadvertent; and

(b)

that the landlord has sought to correct the matter as soon as practicable; and

(c)

that it would not be unfair to the tenant to allow the original notice to be varied in the manner proposed.

Section 24: replaced, on 1 May 1996, by section 12 of the Residential Tenancies Amendment Act 1996 (1996 No 7).

Section 24(1)(c): amended, on 1 October 2010, by section 19(1) of the Residential Tenancies Amendment Act 2010 (2010 No 95).

Section 24(1)(f)(i): amended, on 1 October 2010, by section 19(2) of the Residential Tenancies Amendment Act 2010 (2010 No 95).

Section 24(1)(g): replaced, on 1 October 2010, by section 19(3) of the Residential Tenancies Amendment Act 2010 (2010 No 95).

Section 24(1A): inserted, on 1 October 2010, by section 19(4) of the Residential Tenancies Amendment Act 2010 (2010 No 95).