Company Policy....???

[Superstitionist]

I asked my PM to review the rent on the properties every 6 months. He said he can't, as the company policy only allow to review rent annually. Then I asked if I could have a look at the policy document, he said I can't, as it is confidential.

Does anyone know such policy exist in a realestate agency...

Super.

 

[BayView]

I asked my PM to review the rent on the properties every 6 months. He said he can't, as the company policy only allow to review rent annually. Then I asked if I could have a look at the policy document, he said I can't, as it is confidential.

Does anyone know such policy exist in a realestate agency...

Super.

Sounds like crap to me.

As far as I know, you can review (and change) the rent with every lease renewal - 6 or 12 month.

If you have a 6 month lease in place with the tenant, you can instruct the PM to raise the rent in the new lease, and they have to do it.

 

[buzzlightyear]

"Company policy..."..."confidential..." Is this PM a junior or assistant PM? Definite crapola! The PM may have been confusing the issue where an existing 12 month lease exists, but they should have made that clear.

In Vic (and in most other states too I believe), you are entitled to raise the rent every 6 months, if there is no existing lease agreement in place. Even if you have a lease for 12 months, you can even build in an automatic increase after 6 months, if the market allows it.

Plenty of competition out there in PM land, might be time to test it.

 

[lizzie]

nsw law is that you can review the rent every 6 months regardless of the length of lease.

however, you can't raise the rent by what the tenant would deem excessive - so $10 every 6 months does mean you can fall behind the ball in a rising market, but will eventually catch up with no disputes (hopefully).

i would read the copy of the lease that you should have been sent and hopefully this will clear it up - and i'd "tell" the pm rather than ask.

if they give you the run around, and bs to you, might be time for a new pm.

 

[Raddles]

Hi there
in the ACT if you have a 12 months lease you can only raise the rent at the 12 month mark - and it can't be much more than a CPI increase - you also have to give 8 weeks notice of the increase - so it is important to review your lease agreement
thanks

 

[buzzlightyear]

..however, you can't raise the rent by what the tenant would deem excessive - so $10 every 6 months does mean you can fall behind the ball in a rising market, but will eventually catch up with no disputes (hopefully).

I don't know the NSW law, but surely the increase and its reasonableness isn't dictated by what the tenants think is excessive, it would be linked to what is happening in the market (?)

 

[lizzie]

I don't know the NSW law, but surely the increase and its reasonableness isn't dictated by what the tenants think is excessive, it would be linked to what is happening in the market (?)

if the tenant thinks it's excessive then they can take you to tribunal for a ruling and - as we know - ruling don't necessarily go to the one in the right.

i think it's better to make softly softly increases over an extended period of time than a big hit at once.

 

[Ausprop]

ha ha - company policy! nice one.

may as well have said..err... the privacy act (if I hear that one more time I will throw up)

 

[Dis]

I asked my PM to review the rent on the properties every 6 months. He said he can't, as the company policy only allow to review rent annually. Then I asked if I could have a look at the policy document, he said I can't, as it is confidential.
Super.

LOL! Classic

http://www.tuv.org.au/pdf/resources/Rent_Increases_FS_R_062006.pdf

Tell the agent he may need to review his company policies. If he is not prepared to act in your best interest he will lose you as a client.

 

[Superstitionist]

Tell the agent he may need to review his company policies. If he is not prepared to act in your best interest he will lose you as a client.

Have to admit he is definately not act in my best interest at all...

One of my properties has the lease agreement expired on November last year, I started to remind him to increase rent and renew the agreement since August through to 2 days ago, he still hasn't sent out the notice letter yet, the tenant still pays rent in old rate without a valid agreement. I asked for a reason, he said the tenant is a contractor to a company, and still waiting for confirmation if the company will renew his contract. Then I said what would that to do with me, and he said he tried to be fair with all parties....such a nice guy, but definately not my cup of tea...

Indeed, time to look for a new PM.

 

[GoAnna!]

What suburb is your property in?

 

[Superstitionist]

What suburb is your property in?

Coburg - Melbourne north.

 

[AlmostBob]

Sent the PM a bill for the difference in the rental amount from the xpired lease to current with a note that a further invoice will be payable on the first of each month untill the matter is resolved to your satisfaction

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[Dis]

Sent the PM a bill for the difference in the rental amount from the xpired lease to current with a note that a further invoice will be payable on the first of each month untill the matter is resolved to your satisfaction

Waste of effort?

Some people you just dont need in your life. Surround yourself with good people. Know when to sever destructive / detrimental relationships.

 

[geoffw]

and it can't be much more than a CPI increase

I don't agree with this bit.

It must be justifiable- and market rates can be used to justify an increase.

I increased a rent in the ACT from $250 to $290 pw. I used as justification the rent for the one next door going from $280 to $350 when it was relet. The tenant protested, sougfht advice- and moved out.

The next tenant paid $320pw.

 

[Raddles]

Hi Geoff
it is interesting that you comment upon 'justifiable rent" as a number of the PM's we have dealt with have based their recommendations based on movements in the CPI - but then our property is around the $500 per week mark and a larger increase is not warranted
thanks

 

[NOT 2 L8]

Strangely, most tenants know when they are well off. I reviewed and increased rents as follows:

Hocking by $70.00/wk
Bibra Lake by $35.00/wk and
Waikiki by $50.00 /wk

They are all still there and happily paying as they know that they would be worse off moving due to the costs of the move and would be lucky to find a place at a better price if at all.

Cheers Chrisv.

 

[skater]

Get a new PM pronto. You don't need a PM that is not looking out for your best interest.

 

[Ausprop]

Hi Geoff
it is interesting that you comment upon 'justifiable rent" as a number of the PM's we have dealt with have based their recommendations based on movements in the CPI - but then our property is around the $500 per week mark and a larger increase is not warranted
thanks

not many tenants would pay what I consider to be justifiable rent, hence I don't bother with renting anymore, just not worth it. I'll keep the ones I have, from here on tho it's churn and burn. tenants can compete for the remaining stock...

 

[Superstitionist]

Sounds like crap to me.

As far as I know, you can review (and change) the rent with every lease renewal - 6 or 12 month.

If you have a 6 month lease in place with the tenant, you can instruct the PM to raise the rent in the new lease, and they have to do it.

I think you are right. I went to see the PM 2 weeks ago, told him to increase rent for one of the properties which had an increase 6 months ago.

Initially he said he will send the notice letter out in 3 months time, but I said I want it now, and if he can't do it, I will arrange for someone who can deal with it. He sent the letter out the next day, and the tenant accepted the increase with no question asked.

I really really want to refresh his memory about the company policy thingo, but at the end, I didn't do it as I get what I want already...

Super.