Increase the rent or get new tenant

Hi Guys,

One of our IP's has just come off a 3 year fixed term and is now on a variable rate hoping that it will decrease by the end of this year. This of course means that the mortgage payment will increase by $111 pw.

I know the current tenant won't be happy with a $40 pw increase in rent to bring it up to market value (as she has an attitude) and may cause all sorts of problems.

Is it best to give her notice to leave - without grounds and get a new tenant or try the increase on her?

Cheers,

Bazza
 
I would try the increase on her, particularly if it only bringing it up to market.

If she doesn't like it, she can leave.
 
I would try the increase on her, particularly if it only bringing it up to market.

If she doesn't like it, she can leave.

This particulate tenant has a habit of asking for plumbers when she gets aggro. I think I would prefer if she leaves.

hi Bazza, why do you mention the loan rate? it has no relationship to the rent. were you keeping the rent fixed for last 3 years too?

No, it has been increasing yearly but the rents have recently gone up by $40 pw just in the past year so it is now below market value. It didn't make much dfference when the loan was fixed but now we have the extra $111 pw to make up someone has to pay?

Cheers,

Bazza
 
This particulate tenant has a habit of asking for plumbers when she gets aggro. I think I would prefer if she leaves.Bazza

In that case, I think you need to repaint and redo the floors and need vacant possession at the end of her lease :D:D
 
In that case, I think you need to repaint and redo the floors and need vacant possession at the end of her lease :D:D

Yes Wylie I agree. I was going to say that since we've had so many costly plumbing problems recently that we need to do a major overhaul of the drains.

Cheers,

Bazza
 
If it is a tenant who has a habit of getting in tradespeople that you have to pay for, when there is little wrong with the place, then yes, get rid of them & put the rent up to market. The increased income will come in handy.
 
If you increase her rent and keep her there, then you can expect an increase in the list of demands and "maintenence" repairs.
 
If you increase her rent and keep her there, then you can expect an increase in the list of demands and "maintenence" repairs.

Yes that's the problem. Demands for maintenance are directly proportional to rent.

Thanks for all the advice - she's out.

Cheers,

Bazza
 
You don't have to give her a reason like plumbing or maintenance. Just give her 90 days notice :)

According to the RTA Qld, upon expiry of a lease two weeks notice to leave is required without grounds. Her lease expires in three weeks so she gets the notice next week. Seems harsh but she probably won't pay the rent once she is given notice.

Cheers,

Bazza
 
This particulate tenant has a habit of asking for plumbers when she gets aggro. I think I would prefer if she leaves.

In the exact same position as you right now Bazza. Same sort of annoying tenant who's taken to asking for a plumber/maintenance guy every few weeks since we put the rent up by $10pw back in January - despite this, it's still $20/30pw under market.

You have to judge it on a case by case basis as to how much the individual tenant is pi$$ing you off. In our case, I've had enough and gave them eviction notice without cause. He's out end of May, at which point I'll increase to market.

Even if he was interested in paying market rate, I wasn't interested in having him as a tenant. Moral of the story? Don't pi$$ your LL off with nuisance calls.
 
In the exact same position as you right now Bazza. Same sort of annoying tenant who's taken to asking for a plumber/maintenance guy every few weeks since we put the rent up by $10pw back in January - despite this, it's still $20/30pw under market.

You have to judge it on a case by case basis as to how much the individual tenant is pi$$ing you off. In our case, I've had enough and gave them eviction notice without cause. He's out end of May, at which point I'll increase to market.

Even if he was interested in paying market rate, I wasn't interested in having him as a tenant. Moral of the story? Don't pi$$ your LL off with nuisance calls.

Ha! Good to know I'm not the only one.

My question is, are you sure the property isn't just getting 'long in the tooth'? That's the issue I have with mine. It's really hard to tell.

My tenant was also quite upset at the last $10 rent increase even though it is still under market value (raised up to $210pw for a 15yo 3 bedroom house with ensuite and garage in a Melbourne outer suburb!). Verbally abused my PM and the maintenance guys.

I decided to have the property manager to an inspection, specifically ask for any maintenance requests and then raise the rent $40pw (up to $250 - market value).

Hopefully they'll just pay the fair market rent or move out. If I get repeated requests then I will have ask them to leave to renovate the place (all those maintenance requests must mean a full makeover is required).
 
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Ha! Good to know I'm not the only one.

My question is, are you sure the property isn't just getting 'long in the tooth'? That's the issue I have with mine. It's really hard to tell.

We've never seen the inside of the property - only bought it for the land. Having said that it, it's old and I'm sure would need some work. I'm sending my PM in there upon the final inspection to highlight any maintenance issues she deems need attention, and she'll send her guy through.

The issue I have with this tenant is that it's not legitimate maintenance calls. He gave us an itemized list of repairs that he wanted done, along with an excuse as to why he was 3 weeks behind in the rent (benefits weren't paid in time blah blah blah). One was lino in the kitchen had a hole in it apparently and which ex-wife was using as a reason the house was unfit for the children to live in. Next he proceeded to list each individual tap in the house as leaking - all as separate maintenance items. :rolleyes:

Sent my dad around to check it out, and he didn't know what the guy was on about. He went around to all the taps with the guy, and dad just turned them off and voilà - no dripping, with the exception of one tap in the laundry which we then sent a plumber out to change as he'd never seen a tap like that before. I have no problem with legitimate issues ie. oven broke down in another IP - I had it repaired the next day, and that cost $400, vs the $0 his stupid complaints cost me.

Then about 4 weeks later, we were told again about 4 separate taps all dripping, the bathroom drain clogged, and the fly screen coming out in one window, and the absence of a fly screen in another room. Well we're not required to install new fly screens where there weren't any before, and the one that was "coming out" - my dad literally pushed it in on the one corner that was coming out with a finger! Taps were all fine again. I instructed the PM to have the drains checked, but charge him if it was just a build up of hair etc - never heard anymore on that one, nor was I billed, so assume he changed his mind about having plumber come out.

At this point, told my PM to evict him as he was just proving to be a nuisance. This was all in the space of about 2 months I might add - directly after the rent was increased by $10pw. The 3 months prior to that, not a peep from him.

Then yesterday was told that he had called to say that the kitchen drain was clogged, and the faucet had snapped off. Jeez, we must have bought the house with the worst plumbing in Adelaide! :rolleyes:
 
Then yesterday was told that he had called to say that the kitchen drain was clogged, and the faucet had snapped off. Jeez, we must have bought the house with the worst plumbing in Adelaide! :rolleyes:

Well Steve you have the worst plumbing in Adelaide and I have the worst on the Gold Coast!

We have had numerous requests for plumbers generally when she can't pay the rent. I must have spent over $1,200 on plumbing over the past few years. We even had a Council Waterwise check where a plumber checks every thing for leaks.

Twice a year we get an excess water bill which she has to pay if she exceeds 120kl. Last time she used 160kl compared to my PPR 70kl and every time I send her the bill for excess water - she needs a plumber. Last time her bill was $104 and the plumber cost $120. The time before that the plumber couldn't find anything wrong.

It's like she can't accept the fact that she is using the water and has to have the last laugh. Well now I get the last laugh as shes paid $53k off our mortgage and shes out on the street in a few weeks :D

Cheers,

Bazza
 
Well Steve you have the worst plumbing in Adelaide and I have the worst on the Gold Coast!

We have had numerous requests for plumbers generally when she can't pay the rent. I must have spent over $1,200 on plumbing over the past few years. We even had a Council Waterwise check where a plumber checks every thing for leaks.

Twice a year we get an excess water bill which she has to pay if she exceeds 120kl. Last time she used 160kl compared to my PPR 70kl and every time I send her the bill for excess water - she needs a plumber. Last time her bill was $104 and the plumber cost $120. The time before that the plumber couldn't find anything wrong.

It's like she can't accept the fact that she is using the water and has to have the last laugh. Well now I get the last laugh as shes paid $53k off our mortgage and shes out on the street in a few weeks :D

Cheers,

Bazza

i Lol'ed hard <3
 
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