lease renewal question

backtrack

backtrack

Hi,

I've been renting for two years this apartment with yearly renewals.
Last year the lease increased by 5$ a week, now for the next lease the PM told me it'll be 15$ a week more! I have tried to negotiate down to 10$ but I was probably not good in that. I mentioned that the apartment next door, same as my one, was recently available for renting $30 the week cheaper than what I currently pay.
She also said the lease would increase no matter if I stay on a yearly contract or renewing monthly.

Do I have any chances of negotiating? would the landlord be more interested in having me for another year rather than on a monthly? paying regularly in time no issue at any inspection etc

Is the PM really reflecting what the landlord says/wants?
Can the tenant ask the PM to have a word with the landlord?

thanks
Mike
 
We generally don't increase our rent because many tenants stay for a year or two and at that stage we bump it back up to market.

However, we have just gone through the exercise of increasing rents to market where tenants have been there and have slipped under market. (Market rent is not an easy thing to determine in my opinion.)

I guess you can try to negotiate the increase, take them to tribunal if you think it is unfair or don't sign the new lease but look for something else.
 
kathryn d said:
why not save $2k a year, and take the cheaper apt?
Click to expand...
because it was already taken once I saw it advertised :(

I actually like the place and would like to avoid the hassle of moving, so looking for negotiation options without having to go tribunal (no idea how that even works)

how about the chance of having a word with the landlord, is that something a tenant can ask?
 
Id be surprised if the PM will allow (not right word, i know) you to speak to the landlord directly, but maybe you could write a letter / email, for the PM to forward to LL, and ask the landlord to consider other options for a reduction in the proposed increase.

Maybe pay your own water rates (if applicable)
Sign a longer lease with a built in rent raise for next year.
 
You cant really go direct to the landlord, unless the property manager passed on their contact details, and most PMs wouldnt do that.

Im afraid you have 3 choices. move out, pay the new rent, go to the tribunal.

Going to the tribunal wont be as much of a hassle as you think. get some advice from the tenants union first. You might find that the $15 wasnt over the odds and is under the current market anyway.
 
You can ask to speak to the landlord, but the agent will say no, as not dealing with tenants is one of the main reasons an owner would use a property management service.

The agent is directly employed by the landlord, so I can almost guarantee that the landlord has discussed the rent increase with the agent. For all you know, the landlord may have requested a $35 increase and they compromised...

Your best strategy is probably going to be to negotiate again, or pay the increase. Depending on the price of the unit, $20 increase over 24 months seems quite reasonable to me.

The $15 increase is only $780 over 12 months, and it would cost more than that to pay movers & utility reconnection.
 
You only have a few options, cop it, move out or dispute it.

If you feel it is unfair I'd first try negotiating with the PM (write an email) and then you can contact CAV if you feel the rent is excessive.

Remember just because one property is cheaper doesn't mean it's at market rent, possibly the old tenants broke their lease, it's not as nice or the landlord has requested less rent to get a tenant in sooner.

$20 over 2 years as Matt said is pretty standard, although depending on where the property is etc, etc. I've found that a few are having rents dropped or left alone.

I would never pass contact details of a landlord onto a tenant, and on occasion I've had landlords wanting large increases and had to tell them otherwise.
 
thanks for the suggestions, following up on this after holidays.

a few questions:

why would the PM try to compromise the rent in favour of the tenant? what interest does he/she have in it?

Wouldn't it be better for a PM if a tenants change frequently? (PM gets more provision?)

Generally shouldn't it be cheaper if a tenant signs up for 1 year rather than monthly? In my case the PM says no matter monthly or yearly the rent is going to increase the same

I have received the 60 days notice from the PM and seen there is the possibility to request an investigation for excessive rent, free of charge, protecting privacy etc
Is that safe to do, are they potential implications?
 
backtrack said:
why would the PM try to compromise the rent in favour of the tenant? what interest does he/she have in it?

I'm not sure what you mean by this question?

Wouldn't it be better for a PM if a tenants change frequently? (PM gets more provision?)

They earn a week's rent plus GST but they do have to actually do some work, hold some opens and do a lot of paperwork, checking etc, so maybe they prefer to keep a good tenant. I don't really know but it's not like they get the money for nothing. Maybe if the PM got the week's rent for herself (instead of it going to the agency) and she didn't have to do all that work whilst doing everything else she must do, she would churn tenants as a money maker for herself?

Generally shouldn't it be cheaper if a tenant signs up for 1 year rather than monthly? In my case the PM says no matter monthly or yearly the rent is going to increase the same

As a landlord I would not give any discount just because a tenant signs for one year as opposed to paying month to month.

I have received the 60 days notice from the PM and seen there is the possibility to request an investigation for excessive rent, free of charge, protecting privacy etc
Is that safe to do, are they potential implications?
Click to expand...

Downside I see is that you may be seen as a nuisance and not be offered a renewal next time.
 
backtrack said:
I have received the 60 days notice from the PM and seen there is the possibility to request an investigation for excessive rent, free of charge, protecting privacy etc
Is that safe to do, are they potential implications?
Click to expand...

Yeh go through the investigation just to put your mind at ease, I did this back years ago, it's confidential. Just some expert comes out, checks all local listings and compares properties with yours to determine market rent. if you're close enough to it, then the rise is deemed acceptable.
 
backtrack,

Correct me if I am wrong, but didn't you get a 50% discount on the rent increase for the lease that is expiring?

http://somersoft.com/forums/showthread.php?p=829653#post829653

A reasonable approach might be for you to think about the annual increase applied to (say) Age Pensions. How does that compare over the years? What about the CPI, which is discounted.

As some guide, this ABS news release of 16 Nov 2011 will give you some idea of the increasing costs of housing that are beyond the control of the home owner. In the media or on this forum you might have read about ramped up insurance costs, just to take one example.

Accommodation is a business and you will not have accommodation to rent if owners become insolvent.

I don't know about others, but I get some ethical qualms when asked for ways to negotiate down or find ways to appeal increases that superficially at least are more than reasonable, under-estimated even.
 
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