Issue Date:  -  Monday, 20 May 2002

Do Your Homework Before Signing Up For Long Leases

Do your homework before signing up for long leases, this is the message from the Department of Consumer and Employment Protection in the North West of our state.

“People living above the 26th parallel wishing to lease property, are often faced with challenges that are not an issue in the metropolitan area. Rental rates on properties in areas such as Karratha, can be subject to steep increases due to the numbers of rental properties available”, Consumer Protection’s Marie Bingham said today.

Tenants in regional areas who have signed up for fixed term leases containing rent review clauses frequently find the amounts are tied to market values. The department has received reports of rental increases up to $400 per week after only six months of the initial term.

“Its not all bad news though, tenants in this situation can request a market valuation report if they are in doubt about the amount of their rent increases. If rent increases exceed market values, landlords maybe at risk of breaching the agreement”.

“We would like to encourage prospective tenants to try and negotiate their rent reviews based either on a set dollar value or a percentage basis, rather than the presently fluctuating market value method”, Ms. Bingham said.

Problems can arise when either or both parties do not read lease documents carefully before signing and committing to their conditions. The department has general information and advice available:

Email: online@docep.wa.gov.au
Phone: 1300 30 40 54 or 9144 1478

Specific legal advice on lease agreements can be obtained from Pilbara Community Legal Service (Roebourne) 9182 1169