rent

hi

i have a bit of a bone to pick with rental increases.

Feel free to correct me if I am mistaken - I have been trying to increase my rents as my tenants lease expired in mid december. I was advised by my agent not to give notice of this raise until january as the tenant may move out over the xmas period. This is fine. Then comes mid january and I have received a letter saying that my agent will give notice to the tenant about a rise, effective as of the 12th of April.

What is to stop the tenant living in my IP on an expired lease with rent that hasnt changed in almost 18 months and then 2 weeks before the increase giving me 2 weeks notice to move out???

I have been waiting on this increase for a few months now and it is making me quite frustrated. What are my options? Can I ask the tenant to sign a new lease (therefore making an increase effective) or do I have to wait the 60 days?

cheers
tab
 
What is to stop the tenant living in my IP on an expired lease with rent that hasnt changed in almost 18 months and then 2 weeks before the increase giving me 2 weeks notice to move out???

Nothing, but I thought it was 21 days.

I have been waiting on this increase for a few months now and it is making me quite frustrated. What are my options? Can I ask the tenant to sign a new lease (therefore making an increase effective) or do I have to wait the 60 days?

cheers
tab

Tenant is under no obligation to sign a lease anyway. Not sure why you are frustrated. Wouldn't keeping the same tenant in the property and waiting for the increase to kick in be better than a vacancy period, reletting fees or wear & tear from moving in and out?
 
Seems more of a communication break down with your property manager.

If you insist on a rental increase have your property manager issue one subject to the minimum notice required under the R.T.A. problem solved. Your tenant will either accept it or move on.

Cheers,

Fourex.
 
giving me 2 weeks notice to move out???
twobobsworth is right - they have to give 21 days notice

Can I ask the tenant to sign a new lease (therefore making an increase effective) or do I have to wait the 60 days?
You have to wait the 60 days....actually 64 days - you need to allow 4 days for the post to arrive to the tenants.

If I were you, next time I'd:
1. Get your PM under control so they do what you want more quickly but still within the law
2. Write 12 month leases by all means but have a rent review clause at the 6 month mark
3. Seek to do smaller rent increases but more regularly so that you tenants are not tempted to move for the sake of a $5-10pw increase
 
If I were you, next time I'd:
1. Get your PM under control so they do what you want more quickly but still within the law
2. Write 12 month leases by all means but have a rent review clause at the 6 month mark
3. Seek to do smaller rent increases but more regularly so that you tenants are not tempted to move for the sake of a $5-10pw increase

In all honesty, I would have increased the rent, Christmas or not. If you are at market rates, what have you got to be worried about. If they move, they will have to pay the increased amount in the new place, so they might as well be paying it to you.
 
In Queensland lease renewals have to be finalised two months prior to the end of the lease under new Govt regulations. Well, the landlord has to agree to terms etc but just recently one of our tenants did not sign until the day before renewal.

Because of this we will only do 12 month leases. It has actually worked for us because we stipulated an increase at the 6 month mark (in July) which is a notoriously hard month to get an increase as this IP has a pool and is close to the beach. Tenants pay a premium for the location in summer but not mid-winter.
Marg
 
In all honesty, I would have increased the rent, Christmas or not. If you are at market rates, what have you got to be worried about. If they move, they will have to pay the increased amount in the new place, so they might as well be paying it to you.

Ditto.

Provided you have to give 60 days notice to the tenant, I would have done it before Christmas.

You can get a lease signed for the new term whenever, with the corresponding rent rise to kick in when the existing lease expires.

I got my props in north Brissie market appraised for rent in December. All bar one property was reletting in this month and the other term was to finish in Feb. I had all new leases drawn up with the new rent, and even the Feb one was signed and returned. This one will kick in in the next few weeks.

Cheers,

F
 
I would get a new PM. Sounds like this one is conservative and too worried about vacancy. I would also check market rent yourself also - the PM might be renting below 'to avoid vacancy'.

I don't know how many times I have seen properties advertised for rent at way below market by PM's. Makes it easy for them - lots of applicants to choose from and doesn't really make much difference to their income. A $20 per week increase is worth $960 per year to you and only $80 per year (at 7.7% fees) to the REA (the PM probably gets none of it anyway). Just another reason you need to 'manage' the PM's
 
Hi Mike,

You may be right. I have been o/s for 5 years and she has been managing for me for the last 18 months.

Having said that, when I informed her in November that I wanted to raise the rents and did she advise me to do so, she said to wait til after xmas as the tenant mentioned that he would move out if I did and she had to talk him into staying.

I think I need to be a bit more proactive and assertive in this regard as it is my money being spent!!!
 
The reason LL don't like to try and fill a vacancy right before christmas is BECAUSE tenants don't want to move then.
 
The reason LL don't like to try and fill a vacancy right before christmas is BECAUSE tenants don't want to move then.

I think depending on the market, anything is possible......

I had a couple of leases expiring in Dec, and got 2 new tenants with no hassles.

F
 
December/January are usually peak rental months as families tend to move at the end of school years. It is also the time of most teacher, police etc transfers for the same reason.

Obviously avoid the 7-14 days before and after Christmas.
Marg
 
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