Rent including elec bills ? have you done that ?

[Bargain Hunter]

We have a granny flat which is not seperately metered so we will need to consider how to factor these costs into the rental agreements when I have finished the reno. The property does have solar hotwater so should be a saving there but the replacement costs are higher than conventional HWS.

Regards

Andrew

 

[Murphy69]

Some people have employers who subsidise their rent, and it is based on a cap.

Its possible that they have found a place they like, but is under the cap, so they might ask the LL to include extra's up to the cap.

If thats the case, and you do your sums, it might be a win/win.

But I'd think electricity exposes you to a bit of a risk, because it would be difficult to minimise the downside risk, unless you can agree that if the bill goes over a certain figure, then they will pay the difference.

But that sounds a bit of a convoluted endevour!

 

[DaveM]

Whitehope, its not a chinese market garden where you and the tenant haggle over the price.

Decline their counter offer, increase the rent by a fair amount, and they continue paying their own power usage like 99.9% of all other residential tenancies.

If they dont like it, tell them they are free to vacate and find yourself a tenant who isnt a moron.

 

[whitehope06]

Some people have employers who subsidise their rent, and it is based on a cap.

Its possible that they have found a place they like, but is under the cap, so they might ask the LL to include extra's up to the cap.

If thats the case, and you do your sums, it might be a win/win.

But I'd think electricity exposes you to a bit of a risk, because it would be difficult to minimise the downside risk, unless you can agree that if the bill goes over a certain figure, then they will pay the difference.

But that sounds a bit of a convoluted endevour!

I think you are right, he is in Army. It sounds he gets some subsidize from Army.
I don't think it's worth a risk , even when he pays $450 instead of $425 which is what I asked for !!

 

[skater]

What you think about our unit ? this is details ;

A unit on 2nd level , in Shutherland Shire, 2 bed, 2 bath, 2 balacony, 1 garage. 5 mins from train station, 2 mins from a big shopping centre, so I think $425 is faire price. Last year was $410 , and I’m not worried if the tenant wants to leave , we can find another one easily .

CharliandKath , I think you are right. We’re thinking of changing our PM,she wasn’t so keen to increase the rent at all !!!!

OK, here are the current for rents from RealEstate.com.au


http://www.realestate.com.au/rent/p...e,+nsw/list-1?activeSort=price-asc&numBaths=2

You will notice that there are only 4 priced under $425. I'm not sure what suburb yours is in or what kind of quality it is, but you should be charging market rents, whether that is $425pw or $600pw.

 

[charlieandkath]

Cheapest 2 bed, 2 bath, 1 garage in Sutherland Shire on realestate.com for rent is $390.

I would suggest you go and inspect that property and then judge your place against it.

When you see that your place is much better sack your existing managing agent and find one that will get you 450 a week without electricity. Tenants bluff all the time. Get strong with your managing agent. Vacancy rates in Sydney are very low. Get in line with the market.

Hope this helps.

 

[Doovalacky]

We have a granny flat which is not seperately metered

You can get small single pole power meters fairly cheaply. More accurate than trying to guess what tenant will use.

 

[Property Meister]

so the tenants are willing to spend hundreds and potentially thousands of dollars because they arent going to get an all you can eat electricty deal!!

that hilarious, id say 99% bluff

call their bluff, and counter offer the rent without the electrcity and maybe in a letter hint that the market is tough for tenants and maybe chuck in a hint that you already have interest in another party to rent it out to!

ill bet unless they are going to set up some hydro labs, they'll change their tone quick smart

 

[whitehope06]

Ok, this is an update :

I told the tenant that we don't accept his offer(paying his elec bills), and if he's not happy with $425 per week , he can move out !!

I had a phone call from our PM about an hour ago that tenant gave a notice and he will pay for the next 3 weeks and he will leave on 21-22 May (weekend) .

the question is how much time notice he has to give us ? the contract will be finish 29 June 2011. I was called today 03 Mayand if he leaves on 21 May it is 18 days.

is it supposed to be a 14 or 21 days notice if the contract hasn't finished yet ??

 

[RumpledElf]

At least you've got notice. I hope you can get inspections happening while he's still there (within reason and without driving him nuts) so you can get a new tenant with minimal vacancy time.

 

[whitehope06]

At least you've got notice. I hope you can get inspections happening while he's still there (within reason and without driving him nuts) so you can get a new tenant with minimal vacancy time.

he's in Army , and I was told that 3 weeks is max notice they have to give (!)

 

[rugrat]

he's in Army , and I was told that 3 weeks is max notice they have to give (!)

Only if he's being redeployed elsewhere.

 

[Ed Barton]

he's in Army , and I was told that 3 weeks is max notice they have to give (!)

mark it up. move it on.

 

[Lil Skater]

I don't know about your laws. But in Vic this would constitue a break lease and he should be up for a prorated letting fee and all rent until the property is released or end of his tenancy.

 

[whitehope06]

I don't know about your laws. But in Vic this would constitue a break lease and he should be up for a prorated letting fee and all rent until the property is released or end of his tenancy.

I've got an email from PM to say that:

"the tenant asked that we send him a termination notice only because his work will pay for his removal costs if he is terminated. It will not affect you in any way, he just needs a letter from our office stating that he was terminated. It was just to help him out with his work.he is required to pay rent up until 23rd May 2011."

so , it means he's going to pay rent until 23 of May and not 30 of June !!!
what should I do ? tell him that he has to pay till we find another tenant or what ?

 

[DaveM]

In a NSW lease (IIRC thats where your property is)

If he is in a fixed term lease then he will be required to pay rent until the property is re-let (commencement date of new lease), plus the re-letting fee, plus advertising costs, plus your lease preparation fee, as damages.

If your PM has advised you that he is only required to pay rent till 23rd May, and has not ensured your best interests are being covered, then remind them that a fixed term is in place and you expect every dollar owed to be paid to you.

I also would not agree to a termination letter. This implies early release from the rental agreement by you, which you are not doing. It is also fraudulent - he is not being terminated, he is breaking lease, and trying to defraud a govt department into paying his removal cost.

 

[Fudge]

If he is on a periodic lease (not a fixed term), he is only obliged to give two weeks notice to vacate. (Qld law anyway)

If Fixed Term, as Lil suggested, same as Qld laws.

Depending on Rental Vacany Rates, 2 weeks is all that should be required by a PM to find another suitable tenant.

F

 

[kathryn d]

Also to consider...
Why is he willing to keep with the lease if electricity is included, but need to break the lease if it isn't?
Doesn't sound right.
Also you need to get yourself a new PM...this one is not looking after your best interests.

 

[skater]

"the tenant asked that we send him a termination notice only because his work will pay for his removal costs if he is terminated. It will not affect you in any way, he just needs a letter from our office stating that he was terminated. It was just to help him out with his work.he is required to pay rent up until 23rd May 2011."

so , it means he's going to pay rent until 23 of May and not 30 of June !!!
what should I do ? tell him that he has to pay till we find another tenant or what ?

This guy has got a hide! Tell the PM in no uncertain terms that they are NOT to send him the notice AND that they need to let him know that he is liable for his rent until the end date of his contract. He has not been deployed, so he can not leave early without penalty and if he DOES leave early, then, like Dave said, he has a whole heap of other stuff to pay for. His choice!

In a NSW lease (IIRC thats where your property is)

If he is in a fixed term lease then he will be required to pay rent until the property is re-let (commencement date of new lease), plus the re-letting fee, plus advertising costs, plus your lease preparation fee, as damages.

If your PM has advised you that he is only required to pay rent till 23rd May, and has not ensured your best interests are being covered, then remind them that a fixed term is in place and you expect every dollar owed to be paid to you.

I also would not agree to a termination letter. This implies early release from the rental agreement by you, which you are not doing. It is also fraudulent - he is not being terminated, he is breaking lease, and trying to defraud a govt department into paying his removal cost.

Also, please look at what sort of advice you've been getting from this PM. Do yourself a huge favour and change PMs.

 

[RumpledElf]

Why is he willing to keep with the lease if electricity is included, but need to break the lease if it isn't?
Doesn't sound right.

Already had suggestions on that. Wants to start a drug lab, watching those utility bills skyrocket and wants to push costs to the landlord, possibly needs a rent at X level etc etc. There's obviously an alterior motive or he wouldn't be leaving.