End of Tenancy contract - monthly renew

[backtrack]

Hi,

When moved in this property I had a one year contract which is due to expire in 2 weeks.
After this, the Property Manager has told me that the rental is renewed month by month. I have asked if it is possible to have another 1 year contract, because I don't want to have a short notice that I will have to move out.
The PM said that she can ask the owner for a new contract and that most probably the rent will increase to adjust to the market.

Is this normal here in Australia?
Is there anything else you can suggest in my case?

thanks,
Mike

 

[The Y-man]

Sounds normal.

Please read (this should have been given to you):
http://www.consumer.vic.gov.au/CA256902000FE154/Lookup/CAV_Publications_Renting/$file/RentingComplete.pdf

You could put your case forward that you are guaranteeing the owners a further 1 year of not having to ook for new tenants etc (as the agent will most likely charge leasing fees etc) - but really comes down to the demand in the area, and the comparative rent you are on.

The Y-man

 

[Jamie M]

Hi Mike

I'm not sure how tenancy laws work in VIC but it sounds like the PM is probably trying to avoid putting a new lease together (which involves work) and instead you're simply rolling onto a periodic, month-to-month lease (which may be a little cheaper as the PM has mentioned).

Cheers

Jamie

 

[Lil Skater]

Hi Mike,

Sounds like a poor agent to me.

Rental increases need at least 60 days notice to take effect, so all rental reviews should be carried out about 2-3 months prior to the end of lease to ensure rental increases kick in when they should and new leases are signed prior to the end of the current lease.

Ie - I contact my landlords approximately 3 months before the end of lease with my recommendations. Even if there is no increase and the tenants will be remaining at the property on a month to month (periodic) lease they will be informed in writing no less than 60 days before the end of the current contract.

I'd hate to be your landlord if the agent only decides to speak to me once the tenants ask about renewing their lease.

 

[backtrack]

I'm not sure how I should approach the Agent, which is very impolite and unfriendly btw.
I just want to avoid having one month notice to move out.
I would not mind paying a reasonable increase of rent, if that is the only way to get another contract, although given what you are saying, it should not increase before 2 months.

 

[Goofy]

I'm not sure how I should approach the Agent, which is very impolite and unfriendly btw.
I just want to avoid having one month notice to move out.
I would not mind paying a reasonable increase of rent, if that is the only way to get another contract, although given what you are saying, it should not increase before 2 months.

the minimum notice you would get to move out would be 60 days (not withstanding rental arrears or mortgagee sale in which case a lease wouldn't save you anyway!!) and an owner/agent can't kick you out simply by being on a monthly tenancy.

just send the PM an email and ask for another 12 month lease. Yes it isn't great that you weren't contacted a few months ago from the owners perspective but nothing can be done about it from your end, that is the owners fight to have with the PM. Also just FYI the owner isn't under any obligation to accept your request and may decide they want to keep u on a monthly tenancy.

 

[Lil Skater]

I'm not sure how I should approach the Agent, which is very impolite and unfriendly btw.
I just want to avoid having one month notice to move out.
I would not mind paying a reasonable increase of rent, if that is the only way to get another contract, although given what you are saying, it should not increase before 2 months.

Hi Mike,

Firstly, maybe sending an email will be better? This way you don't need to speak to them.

Something like -

Dear ...,

As per our conversation the other day, I would just like to know if you had any response from the landlord in regards to renewing the lease on my property? etc..

Also, it is unlikely you will be given just a months notice to vacate. Notice to vacate periods do vary, from 14 days to 120 days. In most cases, you will be issued with a 60-120 day notice to vacate. Basically, 14 days notice will be issued if you have breached your tenancy, or if the property was the landlord's PPOR straight before the commencement of your tenancy.

Bearing all this in mind, the minimum would likely be 60 days, this would be for things like renovations, but the notice will stipulate this.

Take a look at Consumer Affairs Victoria website here which will explain all the notice periods for you.

Also, you should have received a little red book, which by law all estate agents in Victoria need to give you before moving into a property giving you information on renting a property.

And yes, you must receive at least 60 days if they want to increase the rent.

 

[backtrack]

yes I checked the information about the leaving notice and it's indeed 60 days.
I have sent an email to the PM.

Will keep posted.
Thanks all for the suggestions

 

[backtrack]

Hi all,

I finally received an answer from the PM. She said the owner has agreed to a 12 months renew with an increase of $10.00 per week.

I know it's a take it or leave it, and don't know if the PM really contacted the owner etc, I just wanted to know if this is a reasonable increase based on the market value or a rip off.

How is this business working? the owner shouldn't care much as soon as there is a tenant paying the rent regularly. but the PM has interest in change tenant to get benefits?
And who decides when the tenant has to move out? only the owner or can the PM do so? or it depends on the contract between them?

 

[Goofy]

depends on where the property is located and what the current market says your property is worth. $10 is generally a pretty fair increase every 12 months. You may find that the property is worth $20per week more than what you are paying so the owner has kept the increase to a minimum to offset some of their increased costs yet also recognising that you are a good tenant who pays the rent on time.

At the end of the day a $10 increase doesn't mean a great deal extra to the agent (at 6% Management commission it is an extra $31.00 per year to the agent).

As to who decides when the tenant moves out... in most cases it is the tenant who decides - if the tenant is on a monthly tenancy then they can serve 28 days notice at any time. If they are on a fixed term then if the tenant wants to leave then they can but must break the lease and pay associated costs. The owner cannot serve a NTV while there is a fixed term tenancy in place (except when there has been a breach such as rental arrears). They can serve a NTV at the end of a fixed term tenancy for reasons such as the property being sold, renovated, family member to occupy (all 60 day notices), they can serve an end of fixed term tenancy notice (although these are pretty rare and generally only served when the tenant is a pain in the rear - such as always being late with their rent but never quite late enough to be able to take them to VCAT) or there is the 120 day no reason notice - again also pretty rare.

 

[bradcon]

In both my cases as a renter the rent was put up around the 1 year mark but one agent sent out a new contract (we didnt sign, they didnt follow up) and the other never even mentioned a new contract so we are now month to month.

As a renter its a better deal for us as we can leave with 28 days notice and pay nothing extra but for the LL it really makes no sense to have tenants on month to month (IMO) unless they plan to use the property for other things in the next 12 months.

 

[backtrack]

After reminding the agent that there has been a construction building directly in front of our window since we moved in (and my partner was working from home for 6 months), the owner has agreed to increase the rent 5$ a week instead of $10.
My proposal was to get a renewed contract with no increase.

Thanks to all for your time and replies. really appreciated

 

[Ed Barton]

After reminding the agent that there has been a construction building directly in front of our window since we moved in (and my partner was working from home for 6 months), the owner has agreed to increase the rent 5$ a week instead of $10.
My proposal was to get a renewed contract with no increase.

Thanks to all for your time and replies. really appreciated

did you get a new fixed term lease? sounds like you are good negotiator and have done well out of this.

what is your weekly rent? at say 300pw, that's a 1.7% increase, ~ half that of CPI.

 

[backtrack]

it will be a 12 months lease. I'm paying $380 per week at the moment, so it'll be $385.
I'm actually not a good negotiator but I thought it was worth mentioning the construction place we had to stand for months.
I would have probably taken also the $10 pw increase because I really don't want to move.

 

[Ed Barton]

it will be a 12 months lease. I'm paying $380 per week at the moment, so it'll be $385.
I'm actually not a good negotiator but I thought it was worth mentioning the construction place we had to stand for months.
I would have probably taken also the $10 pw increase because I really don't want to move.

maybe you were just up against a crap negotiator. you're paying a 1.3% increase, insignificant. i bet i could have got at least 15 pw increase out of you.

it's worth mentioning anything in negotiations. Greece is about to implode, the guy next door has had no increase for 10 years, the economy is stuffed, i want a 2 year lease, blah blah blah.

well done. you have done well, i just wouldn't want to be your LL.