Fixed ---> Periodic Lease

[Nards]

Hi all,

Quick question for WA IP owners...
I have an IP, tenanted by the same tenants for the last 2.5yrs, on fixed leases (6mth, then 2 x 12mths leases). They are reasonable tenants - pay on time, and keep the place well (though whinge a lot!). I am wanting to have them rolled over when this fixed lease is up onto a periodic lease, as there is a chance we may have to move back into the house this year. I also need to put the rent up significantly ($50/week+), as with the recent growth in the Perth market, it has fallen behind.

How much notice do I (the PM) need to give the tenants of the above. The tenants have asked to renew their lease and want to stay on - but haven't yet been informed of the periododic lease or rent increase. I know on aperiodic lease I need to give 60days notice of increase, but what if it is a new periodic lease?

I'm sure my PM would know this - if she ever returned my calls - another story... I fear she is leaving it all a bit late as the lease is due for renewal on 10th Jan...

Cheers, Nadia

 

[INVSTOR]

Off the top of my head I don't know the answer but out of courtesy if it's going to be a $50 jump I give 8 weeks notice to give them the opportunity to move on if they're not happy. Most move on -some realise they've had an easy ride and are happy to accept.

 

[jaycee]

lol exactly what happened to me - put the rent up $50 from $225 to $275 and they bailed... lucky timing, advertised for $300 & got it

looks like you have to give me 8 week's odd notice...

from docep wa's website, from the residential tennancy act:

14. Rent increase
THE OWNER may not increase the rent unless —
(a) 60 days’ notice is given; and
(b) not less than six months has passed since the tenancy
commenced or since the last increase.
In addition —
(a) in the case of a tenancy for a fixed period, there can be no
increase unless the agreement allows an increase during
that period; and
(b) in the case of any tenancy, rent increases may be excluded
or limited by the agreement.
THE TENANT must not fail to pay rent with the intention that the
owner will take the rent from the security bond.
EXCESSIVE RENTS are dealt with in the Act but the provision only
applies where the tenant is not getting the benefits which the owner
agreed to provide or where the owner puts the rent up with the motive
of getting rid of the tenant.

 

[NOT 2 L8]

Mmmmm........!!!

Interesting.

Anyway, back to the lease thingy. Once the lease expires, you can increase the rent to whatever you want as it becomes a new negotiated contract. Be sure your managing agent do not go ahead and renew the lease before expiry. Once the lease runs out it will automatically revert to a periodic until you negotiate some other arrangement.

You need to advise the tenant a goodly while before expiry that you will be increasing the rent to whatever you want to give them time to make a decision. Go to the site below and study.

http://www.docep.wa.gov.au/ConsumerProtection/PDF/Publications/Renting out your Property web.pdf

Bye

Me

 

[NOT 2 L8]

I'm sure my PM would know this - if she ever returned my calls - another story... I fear she is leaving it all a bit late as the lease is due for renewal on 10th Jan...

Cheers, Nadia

Forgot about this bit.

Send her an email every hour with a read receipt request until she replies.

Ring and speak to the boss, secretary, tea lady ond/or the cleaner and leave detailed messages about the renewal.

Send her text messages.

Send Stix.

If she renews the lease you are doomed.

Ring the tenant and tell them.

Just do it.

Bye again.

Me.......................again.

Ps. Sack the agent!!!

 

[Nards]

Hehe..thanks Dad! Should have just called you hey!

Tis all sorted now...tenants have been informed of the rent increased and non-renewal of fixed lease..now just the wait to see if they stay on or move...I have my money on stay, as there is nothing similar for the same price in the area...

As for the agent...well she finally got back to me (usual story bout staff on Mat leave, new PM starting next week etc etc...) and was eventually quite efficient...dont know if deserving of WAs exhorbitant PM fees, but anyway, will persevere...

Cheers, Nadia

 

[jaycee]

Interesting.

Anyway, back to the lease thingy. Once the lease expires, you can increase the rent to whatever you want as it becomes a new negotiated contract. Be sure your managing agent do not go ahead and renew the lease before expiry. Once the lease runs out it will automatically revert to a periodic until you negotiate some other arrangement.

You need to advise the tenant a goodly while before expiry that you will be increasing the rent to whatever you want to give them time to make a decision. Go to the site below and study.

http://www.docep.wa.gov.au/ConsumerProtection/PDF/Publications/Renting out your Property web.pdf

Bye

Me

Sorry Notool, if our 2 posts that irrelevant to what was asked ?

 

[NOT 2 L8]

Old fella.....egg on face.

Hi all,

..........there is a chance we may have to move back into the house this year.

Cheers, Nadia

Whoops!!!!!!!

Sorry for the misunderstanding jaycee and Invstor, I now see how you might feel that I dismissed your advice. That was not ever the intention here and I appologise profusely. The "Interesting" comment was directed at Nards for the above statement and not your advice which was spot on.

Again, publicly and sincerely, I'm sorry.

Cheers.

Chrisv.

 

[WASP]

From the docep web

are in a periodic tenancy, rent may be increased only at six-monthly intervals but you must be given at least 60 days’ notice in writing, with details of the amount of the rise and the day it takes effect. You only have to pay the increase if proper notice has been given. Rent cannot be increased in the first six months of a periodic tenancy, or less than six months after the previous rise.
rent in a fixed term tenancy cannot be increased during the term of the tenancy unless the agreement says so and it is at least six months since the last increase.

So if a fixed lease has finished and the tenant has gone into a periodic lease, when can you raise it?

when the periodic commences or you give 60 days notice, or you have to wait 6 months?

the periodic has commenced in this case

 

[thatbum]

From the docep web



So if a fixed lease has finished and the tenant has gone into a periodic lease, when can you raise it?

when the periodic commences or you give 60 days notice, or you have to wait 6 months?

the periodic has commenced in this case

You can raise it after 60 days notice - don't have to wait another 6 months.

If you gave 60 days notice before the end of the fixed term, you could actually have had the increase from the point of the periodic tenancy starting.

<-- Tenancy lawyer.