Can I Still Increase Rent?

[angel0death]

Hi all. Wondering if someone could provide some legal advice.

So, I've got a property that's tenanted via a property management company.
The tenant's lease is about to end, and I've offered the tenant to continue their lease on my property for another 12 months.
I've also mentioned that there will be a rent increase.
However, there was a misunderstanding with the management company, and when the tenant came in to sign the new lease agreement, the lease document still had the old rent amount.
This was about a month ago, and I was just informed of this stuff-up today.

So, my question is, is it legal for me to ask the tenant to sign a new lease agreement with the new rental amount, even though he had already signed one previously?

Thanks. Much appreciated.

 

[wylie]

I would be asking the management agency to stump up the "lost" rent for the time the contract runs, if indeed they managed to stuff this up.

There is a signed agreement, so the tenant is safe, in my opinion.

Do you have anything in writing that the rent was to be higher? If so, why not chase the agent for their mistake.

 

[thesuperman]

Hi all. Wondering if someone could provide some legal advice.

So, I've got a property that's tenanted via a property management company.
The tenant's lease is about to end, and I've offered the tenant to continue their lease on my property for another 12 months.
I've also mentioned that there will be a rent increase.
However, there was a misunderstanding with the management company, and when the tenant came in to sign the new lease agreement, the lease document still had the old rent amount.
This was about a month ago, and I was just informed of this stuff-up today.

So, my question is, is it legal for me to ask the tenant to sign a new lease agreement with the new rental amount, even though he had already signed one previously?

Thanks. Much appreciated.

Below is my understanding of it, but I don't know all the legal stuff. Best for a legal expert to comment on this further.

The lease was signed by the tenant & was it also signed by the property management company? If so, then the lease would be valid & can't be changed, unless all parties agree to change the terms of the lease. You might possibly be able to make a claim on the property management company if they were negligent for putting the wrong rent on the lease agreement, but as this is a small amount, it wouldn't be worth it. Maybe look at increasing the rent asap when you are legally allowed to do it as per the lease.

 

[angel0death]

Below is my understanding of it, but I don't know all the legal stuff. Best for a legal expert to comment on this further.

The lease was signed by the tenant & was it also signed by the property management company? If so, then the lease would be valid & can't be changed, unless all parties agree to change the terms of the lease. You might possibly be able to make a claim on the property management company if they were negligent for putting the wrong rent on the lease agreement, but as this is a small amount, it wouldn't be worth it. Maybe look at increasing the rent asap when you are legally allowed to do it as per the lease.

Definitely, the property management company would want to change it. And, the tenant is a bit hesitant since he has already signed it. I mean, who wouldn't want to pay a cheaper rent!
I am just wondering if there are any legal loopholes to get the tenant to re-sign the contract with the new rent? Technically, the agreement he signed before is still binding, right?

 

[Ed Barton]

Hi all. Wondering if someone could provide some legal advice.

So, I've got a property that's tenanted via a property management company.
The tenant's lease is about to end, and I've offered the tenant to continue their lease on my property for another 12 months.
I've also mentioned that there will be a rent increase.
However, there was a misunderstanding with the management company, and when the tenant came in to sign the new lease agreement, the lease document still had the old rent amount.
This was about a month ago, and I was just informed of this stuff-up today.

So, my question is, is it legal for me to ask the tenant to sign a new lease agreement with the new rental amount, even though he had already signed one previously?

Thanks. Much appreciated.

The tenant signed a legally binding agreement with you for rent for the contract period. suck eggs grandma. pursue the agent.

 

[angel0death]

The tenant signed a legally binding agreement with you for rent for the contract period. suck eggs grandma. pursue the agent.

Haha. Thanks Ed. I figured as much. Will go scold the property management company then.

 

[Joe D]

You might possibly be able to make a claim on the property management company if they were negligent for putting the wrong rent on the lease agreement, but as this is a small amount, it wouldn't be worth it. Maybe look at increasing the rent asap when you are legally allowed to do it as per the lease.

I very much doubt you could get PM to foot the shortfall even if it was their mistake. At the very least the Manager of the Agency should offer (or you should strongly suggest) to mitigate this shortfall by having the Agency drop their management fees for xxx months lest they lose you as a client.

Have done this in the past several times where the PM has stuffed up.

 

[TMNT]

I hear you, I had that same situation, the ad said first 4 weeks at $X, then $Y ,

lo and behold, the lease when it arrives by post is for 52 weeks at $X

Edit: upon the end of a 12 month lease, when the tenant comes in to renew and you state there is an increase, and they are happy with it, can you increase it from upon signing effective immediately, or do you still have to give the 60 or 90 days notice, because in my case there is a clause in my renewal for my tenant that says rental increase will occur on todays date + 60 days?

 

[santaslayer]

If the property was advertised on Realestate.com or Domain with the price attached then maybe you could state your case to the PM office? If the advertised rate was also wrong - then I'm sorry, your fault

 

[MichaelGilbert]

For next time;

Hi all. Wondering if someone could provide some legal advice.

So, I've got a property that's tenanted via a property management company.
The tenant's lease is about to end, and I've offered the tenant to continue their lease on my property for another 12 months.
I've also mentioned that there will be a rent increase.
However, there was a misunderstanding with the management company, and when the tenant came in to sign the new lease agreement, the lease document still had the old rent amount.
This was about a month ago, and I was just informed of this stuff-up today.

So, my question is, is it legal for me to ask the tenant to sign a new lease agreement with the new rental amount, even though he had already signed one previously?

Thanks. Much appreciated.

Cant do much about the lease agreement, that's done and dusted.

When you request something as important like a rent increase to your property manager you should put it in an email for proof.

In this case, if your property manager believes that you did request the rent increase, maybe for the duration of this new lease the agency may meet you half way by reducing their commission by half of the rent increase amount?

 

[marg4000]

I would definitely ask the PMt to reduce the commission charged since this was their mistake.

If you have evidence in writing (always confirm conversations by email) then you would have a claim against the PM.
Marg

 

[HD_ACE]

Was there at least a rent review clause in there for say at 6 months?

 

[CHam]

Hi all. Wondering if someone could provide some legal advice.

So, I've got a property that's tenanted via a property management company.
The tenant's lease is about to end, and I've offered the tenant to continue their lease on my property for another 12 months.
I've also mentioned that there will be a rent increase.
However, there was a misunderstanding with the management company, and when the tenant came in to sign the new lease agreement, the lease document still had the old rent amount.
This was about a month ago, and I was just informed of this stuff-up today.

So, my question is, is it legal for me to ask the tenant to sign a new lease agreement with the new rental amount, even though he had already signed one previously?

Thanks. Much appreciated.

So if I'm reading this correctly:

You mentioned to the tenant that there would be a rental increase, but not to the management company?

Why are you talking to the tenant?

And if so how is it the management companies fault? Surely you would send the management company the required rent increase in writing?

 

[MIW]

Haha. Thanks Ed. I figured as much. Will go scold the property management company then.

You do not have to scold you may just need to negotiate from them to cover the difference since it was their mistake, right? DO you have it in writing, via email or was it verbal?
If in writing, I would hold the manager responsible...
Anyway I always believe sometimes we need to manage the manager, right?

 

[James Bond]

Thank you for this thread.

I have just emailed my PM to get written confirmation of my proposed rent increase.

JB

 

[fullylucky]

Rent increase needs a 2 month notice in advance.

if management company stuffed up then you should ask them to compensate you for the loss. (difference in the rent).