The RTA Amendment Act 2020 is now in play and has an immediate effect on rent increases.
Section 24 of the RTA Amendment Act 2020 limits rent increases to once every 12 months from the beginning of the tenancy and no sooner than 12 months after the last increase took place.
Section 24 by virtue of a supplementary order paper 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 after the event 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.
The eBundle clause, titled Rent Reviews, has been updated to reflect these changes.