Increeased Rent by 12% in Rent Controlled Area RCA

[Nick1911]

Hi

I thought rent increases only applied to existing tenancies and when tenants moved out last year I increase rent for the new tenants by 12%. This brought the rent for the apartment in line with market rents. Previous tenants were there for a number of years and I did not increase rent during their time in the apartment.

What should I do?

Can I be forced to drop rent?
Could the current tenants demand that rent be lowered to the previous rent + 4%?
Should I put the delta aside in case a demand is made?
What powers do govt. have to enforce?

Look forward to your feedback.

Thanks

Nick

 

[Leo]

I thought rent increases only applied to existing tenancies

That is not the case. See here for a calculator that will guide you as to the maximum rent you can apply. You can apply up to 4%PA since the last review date, which may get you to what you're currently charging anyway.

If a complaint is made and you are found to have breached the rules, you will have to repay any overcharge and pay a fine.