They do things different in the Territory… apparently

Today Mr Moi and I signed our lives away (well, the next 12 months of our lives). We finalised the lease on our new apartment, and to our surprise, clause number 53 of the lease stated that the rent may be raised to market rate no sooner than six months from the commencement of the agreement.

Now, isn’t that strange? Here we have signed a 52 week lease, thinking we are being clever locking in our rent (the NT’s rental market is totally nuts and More Expensive Than Sydney). Only to be told that the legislation here allows the landlords to increase the rent whenever they want after you’ve lived there for six months. Why oh what, may I ask, is the point of a 12-month lease?

Of course, if we can’t afford the rent hike (because, like, even if Mr Moi is lucky enough to get a pay-rise, it will only happen once per year), we have to pay rent until the apartment is re-leased, and we have to pay all the costs associated with finding a new tennant.

They really DO do things differently in the Territory.

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13 thoughts on “They do things different in the Territory… apparently

  1. Home, eh? Never quite the place it was when you were missing it.

    Is Mr Moi still working for the same company?

    1. Dear enidd. Yes, Mr Moi is working for the same. And we’re not home 😦 We’re in a different state (well, it’s not even a state, it’s a Territory).

      Actually, because of my prolonged trip back here last year, I knew how expensive Australia had become. But, we didn’t know we were moving to Darwin. In fact, in hindsight, it would have made better financial sense to live in the UK, as the only thing that’s expensive there is rent (as opposed to everything that’s expensive here)

  2. Ahhh yes the NT loves it’s real estate! Haven’t you heard, we are meant to be proud that we are the most expensive place in the country to live?!? Crazy. Anyway, welcome to the NT! Thanks for visiting my blog xox

    1. Dear bianca. Totally bizarre…. They won’t be so happy when everyone is priced out of the market?!?

    1. No chris, it doesn’t sound fair to people with a level head, does it. We are just dumbfounded that this is allowed!

  3. It’s closer to Dili than Sydney so I guess that is why everything is so expensive. Pure distance.

  4. It’s the same everywhere, NT are just more upfront about it. Where people get confused in NSW, is where the NSW Tenancy act states “rent can’t be increased at all during a fixed term agreement,” What they rarely seem to notice is that it also says “unless it says so in the residential
    tenancy agreement”.

    Oh, and if you’re thinking “yeah, but that’s NSW, they are a bunch of sharks down there” here’s what the QLD gov says about it…. “Rent may only be increased in a fixed term tenancy if the tenancy agreement allows for it.”

    In volatile times like these, when we are at the bottom of the interest rate cycle, you’d be hard pressed to find a tenancy agreement that doesn’t allow for increases.

  5. So you see, they don’t do things all that differently at all, and as to your question “Why oh what, may I ask, is the point of a 12-month lease?” The purpose of a 12 month lease is to a) ensure continuity of income to the property owner, and b) no, that’s about it.

    It’s always in the interest of the owner to get the tenant to sign the longest lease possible, as for the tenant, there’s no real benefit, it just means they have to give you more notice (and provide cause) to evict you.

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