- April 23, 2024
- Posted by: legaleseblogger
- Category: Related News
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## Unclear Rental Agreement Renewal Terms
I have come across an attachment in my 12-month rental agreement renewal that is poorly defined and lacks clear resolution options. This raises concerns about the legality and fairness of the terms outlined in the agreement.
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## Ambiguous Fixed Rental Amount Clause
The statement in the agreement mentions that while interest rates remain unchanged, the fixed rental amount will stay at $$$$ per week. However, it states that when rates increase, the tenant will be provided with an increase value to accommodate all parties. This clause is vague and leaves room for interpretation.
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## Seeking Clarity and Informed Decision Making
It is crucial to have a clear understanding of the terms outlined in the rental agreement renewal before making any decisions. A periodic or shorter fixed lease may be more appropriate until a long-term fixed rental amount can be agreed upon.
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## Maintaining a Positive Landlord Relationship
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What’s an “attachment exactly”? I guess either way it can’t have any legal meaning since the rent increase provisions are prescribed and can’t be modified by clauses.
If you sign a 12-month lease, they can not increase the rent within that period. UNLESS they explicitly give you a dollar amount when it will be increased e.g on 22/08/2024 rent will be $1500 p/w. (this increase date needs to be at least 6 months from the date the lease was enacted)
This disclaimer makes it sound that if you sign a renewal they can increase the rent if they want. This goes against the law and if brought to tribunal will be null and void and all overpayments to be returned to the tenant.
Apart from the clause being in contravention of the tenancies Act and will be unenforceable, what happens if interest rates drop?
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Did you sign this page? Is it part of the contract, or just an information sheet included that is warning you that if interest rates go up they plan to increase rent in line with it?
In WA rent can be increased within the signed lease period IF it is written into the agreement. It sounds like they are planning to do this if interest rates go up. They are giving you notice that if the rates go up they’ll increase your rent. I am not sure this is legally binding – they should specify an amount it will go up to, and when.
There is no limit on how high they can raise it in WA, so you’d want a ball park position before you sign that. I think it’s reasonable to approach them back and say “I understand this to mean that you will raise my rent if interest rates increase. Can you please give me an indication how much they will rise by before I sign.“