Purchased a new property with current tenants, looking to renew lease.

[JonM01]

Hello,

I've just purchased my first investment property in South East QLD with tenants that have already been living there for a few years. At the time of the purchase they were on a fixed term one year lease but it is already due to expire in a weeks time. After talking with them they want to continue renting and were happy to go on a new fixed term lease with a small rent increase. They agreed to the rent increase will be active at the start of the new lease. However I'm not sure if I'm still required to give them two months notice of for the rent increase or if it can be applied immediately to the new lease? Although they have agreed that the new rent is reasonable and that it could apply at start the new lease I still want to do the right thing by them if they are actually entitled to a notice period for the new lease. I'm still preparing a draft of the new lease using the RTA standard form (18a) so nothing has been set in stone yet.

Also do you think I should do a new condition assessment report? There is one that dates back to when they first started renting. Also the house has been kept in a good condition while they have been renting so my current thoughts are that it's fine just to continue using the existing condition assessment report and refer to it in the new agreement?

Any feedback would be appreciated.

Thanks

 

[Nick Valsamis]

The RTA website says:
"Rent can be increased in a periodic agreement by giving 2 months notice in writing (4 weeks in rooming accommodation).
Rent can be increased at the end of a fixed term agreement. For example, at the end of a 12 month agreement the rent can be increased for the next 12 month period."

Not a QLD expert but by the sounds of it, you can increase the rent at the end of the agreement for the next 12 months but when it becomes periodic you will have to give the 2 months notice.
Looks like you can also increase the bond required along with the rent if it has been at least 11 months since bond increase or start of tenancy.

You wouldn't be able to do a new condition report since it is for the bond and only applies when the tenant moves in and moves out.

 

[rchad]

Hello,

I've just purchased my first investment property in South East QLD with tenants that have already been living there for a few years. At the time of the purchase they were on a fixed term one year lease but it is already due to expire in a weeks time. After talking with them they want to continue renting and were happy to go on a new fixed term lease with a small rent increase. They agreed to the rent increase will be active at the start of the new lease. However I'm not sure if I'm still required to give them two months notice of for the rent increase or if it can be applied immediately to the new lease? Although they have agreed that the new rent is reasonable and that it could apply at start the new lease I still want to do the right thing by them if they are actually entitled to a notice period for the new lease. I'm still preparing a draft of the new lease using the RTA standard form (18a) so nothing has been set in stone yet.

Also do you think I should do a new condition assessment report? There is one that dates back to when they first started renting. Also the house has been kept in a good condition while they have been renting so my current thoughts are that it's fine just to continue using the existing condition assessment report and refer to it in the new agreement?

Any feedback would be appreciated.

Thanks

Sounds like you have things covered - remember to contact the RTA to have the Bond transferred from the previous agency to you. Also, there is value to initiate the RTA Form 9 to enable you to do a detailed inspection to assess any upcoming maintenance issues for budgeting purposes