Lease Renewal

Our Agency will commence the negotiation of a lease renewal approx. 60 days early due to Queensland Legislation notice periods for termination of tenancies and notice of rent increase requirements. Here at Pinpoint Property, we complete a new rental appraisal at each lease renewal to ensure the rent is align with the market value. Tenants are able to negotiate the terms of the proposed new agreement before signing. Tenants can dispute significant changes between agreements such as excessive rent increases or whether pets are allowed, after they have signed the new agreement. If dispute resolution is unsuccessful, they can apply to the Tribunal within 30 days after signing the new agreement to have the significant change reviewed.

There are three ways a fixed term tenancy can continue:

• extend the existing fixed term agreement by agreeing on a new finishing date, or
• enter into a new fixed term agreement, or
• do nothing and allowing the agreement to revert to a periodic agreement.

To extend the current fixed term agreement but not change any other term such as the amount of rent, the parties must agree in writing on a new finishing date before the original agreement ends. The most common way is for both parties to sign a separate written statement or letter that states the new finishes date and that this alters their original tenancy agreement.

Should there be a change in any of the terms from the original agreement, such as rent increase, or additional tenants a new Form 18a – General Tenancy Agreement is required to be signed. Once the original agreement ends, the rent can be increased during the extended tenancy. The only catch is the tenant must be given two months’ notice in writing of the rent increase, and rent can not be increased unless there has been at least six months since the last rent increase.

As mentioned on our previous blog if you do not extend or sign a new fixed term agreement, it will automatically revert to a periodic agreement. This agreement continues under the same terms that applied to the fixed term agreement expect for the end date. The above rent increase limits still apply.

We hope this information helps x

Source: www.rta.qld.gov.au