more people live in IP than agreed number

Discussion in 'Property Management' started by htopg, 5th Jan, 2014.

  1. htopg

    htopg Member

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    Hi,

    I have a 3-bed property with an agreed number of tenants inside - the single mum and her two daughters.
    6 months later, the single mum told me that she is engaged and her partner is moving in.

    Q1. What do you normally do in this situation?

    I am thinking of increasing the rent by $20/week (currently $440/week) NOW.
    But the tenancy agreement says that I cannot increase within one year contract.
    On the other hand, the tenancy agreement says that there can only be a maximum of 3 people.

    Q2. Shall a new contract be drawn out immediately with $20 increased rent and agreed 4 people living in the IP?
     
  2. alexlee

    alexlee Member

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    If the 4 of them had rented the place from day one, would you have charged them $20 more rent compared to 3 people? It's not by the room, why would you charge more just because there's one more person?

    Add the partner onto the lease, certainly, but I don't see why the rent would go up.
     
  3. Joe D

    Joe D Member

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    Permanent tenant and stay-over boyfriend are two different things.

    Fortunately you are lucky that the tenant has advised you of the situation as really there is nothing you can do if she decides to have her bf 'stay-over' most nights (ie. permanently) as there is always the argument that he is just visiting.

    I suggest you advise the tenant that if the bf has moved in it would be in all your interests for him to be included as a signatory to the lease. (Give reasons as necessary)

    Subject to her response and that of her bf, either have all parties sign a new lease or let her run thru to the end of her current ease and don't renew the lease.

    Rental increase is a separate issue, but if new lease lease is agreed you may be entitled to request an increased rent but tenant isn't necessarily likely to agree to it.
     
  4. RetireRich101

    RetireRich101 Member

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    I wish I could charge per head. an IP just got leased with parents and their 5 foster children, so total 7 people in a 4 bedder.
    In fact I had to drop $50 because of fewer applicants in the past weeks/months leading to xmas.
    Now is probably not the best time to increase rent until condition get's better, in my view.
     
  5. marks

    marks Member

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    Do a TICA check and add to the lease. Protects you against someone who has left meth labs in other properties and gives you another name to chase any outstanding debts.

    BTW. If they come with another income it should mean more disposable income for rent. ie. Less defaults.
     
  6. DaveM

    DaveM KFC Buyers Agent

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    As above, the usual TICA/NTD checks and add to the lease.
     
  7. The Y-man

    The Y-man Member

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    IMHO standard "students on a budget" practice near uni's:

    - Have one "model" student apply for lease - preferably a local resident, with rental history or good parents as guarantors.

    - Once lease secured, the rest move in (2 per bedroom and 2-4 in lounge)

    - NO BEDS (other than the person on the lease) - mattresses must be able to be quickly undeployed (eg air mats etc) and all traces of presence (personal belongings etc) must be able to be cleared (into cars etc) within 24 hours of an inspection notice being given.

    - NO PARTIES etc that may get the attention of leasing agents, neighbours etc.

    - surplus money sent from sympathetic overseas parents for exhorbitant rents walking distance to your uni (proof: send parents realestate.com.au link) to be spent on more important things like nice car, nights out etc.....

    Not condoning it - just happens.....

    The Y-man
     
  8. quoll

    quoll Member

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    Be grateful for the tenants.
    Add the new bloke to the lease.
    NO don't try and put the rent up. The tenants are renting the property, it's not a holiday rental or per room rental by the sounds of it.

    Review the rent when the lease is up, if the tenants don't like your new price they will move.