Upcoming Lease Renewal - Renew or Not

[schmick]

Hi Guys,

I have a pending lease renewal coming up in May for our IP.

At this stage we have sent the tenants a letter to notify them that the weekly rent will be increasing by $10 p/month which is inline with the current market rental for the house/area.

My issue is around whether or not we should continue with the current tenants or ask them to move on. Reason being is that our PM did their normal scheduled inspection last Thursday, whilst she said the property was being maintained in reasonable condition, she pointed out the following.

1. Pets seem to be entering/residing in carpeted areas (ie. Bedrooms, etc). We allowed them to keep a pet (Dog) at the premises on the basis that they have the house properly cleaned and pest controlled upon vacating. PM told them not to let pet in/on carpeted areas but it seems they haven't been complying. PM said they could smell pet and that tenants were burning in scents to mask smell during inspection.

2. Tenants have erected an above-ground blow-up swimming pool in the backyard. Pool takes up pretty much entire length of the yard. No fencing, which is a concern in regards to law and legal liability. PM has asked them to remove.

What would you do in this situation? We have generally been happy with the tenants and they have always paid rent on time. The pet issue I feel would be hard to police, as long as the place is properly cleaned and fumigated upon vacating, then I'm sure it would be fine. The pool is an issue though!

What has made me uneasy is that the PM didn't sound confident about renewing their lease following the inspection, which I assume was mainly due to the issues above. I think I need to talk to her further.

PM has advised that she didn't expect we would have any issue finding other tenants.

 

[lura]

Regarding the pool - best practice is to not let them do it. If they are going to do it - put it in writing advising them that they have to comply with all relevant council regulations re pool fencing. Also, to deflect any liability from you as the owner should there be an accident around the pool. And also, if they still want have the pool and will comply as above, they need to agree to make good the lawn and any other structural alterations as result of having the pool at the property when they vacate.

Regarding the pets inside - it's hard to police - but overall, if you have a bad gut feeling - move them on.

Be mindful you will be up for vacant period between tenant change over and let fees.

 

[Fudge]

Hi Guys,


What would you do in this situation? We have generally been happy with the tenants and they have always paid rent on time. The pet issue I feel would be hard to police, as long as the place is properly cleaned and fumigated upon vacating, then I'm sure it would be fine. The pool is an issue though!

What has made me uneasy is that the PM didn't sound confident about renewing their lease following the inspection, which I assume was mainly due to the issues above. I think I need to talk to her further.

PM has advised that she didn't expect we would have any issue finding other tenants.

Regarding pets.....if it is in your tenancy agreement, fair enough. You can generally get a higher rent than similar properties around if you are allowing pets in lease.

Provided there is the clause in the tenancy agreement about professionally cleaned carpets (getting out stains and smells), I wouldn't be too woried about it.

If they are prepared to stay, and are paying more for having pets, and are happy to pay for increase in rent, then goodo.

Otherwise get them out.

Pool is a problem. I think you say it is a house. If it was a unit or duplex, etc, this pool would fall under the insurances of the BC, and they obviously would require permission to put it up.

I would instruct your PM in writing for the teneants to pull it down ASAP.

Also, note that if you are getting them out, you may have to pay a reletting fee for you manager to find new tenants.

Keep us informed of outcome and good luck. (I wonder what your managers thoughts were on reducing the letting fee if he thinks he has them 'lining up' at the door).

Cheers,

F

 

[calliejane24]

1. Pets seem to be entering/residing in carpeted areas (ie. Bedrooms, etc). We allowed them to keep a pet (Dog) at the premises on the basis that they have the house properly cleaned and pest controlled upon vacating.

If that's all that written in the conditions of the lease, then that's all they are obliged to do.

PM told them not to let pet in/on carpeted areas but it seems they haven't been complying. PM said they could smell pet and that tenants were burning in scents to mask smell during inspection.

Was the request from your PM in writing?

2. Tenants have erected an above-ground blow-up swimming pool in the backyard. Pool takes up pretty much entire length of the yard. No fencing, which is a concern in regards to law and legal liability. PM has asked them to remove.

If they remove it, then I'm guessing it ceases to be an issue? Besides....

We have generally been happy with the tenants and they have always paid rent on time.

The pet issue I feel would be hard to police, as long as the place is properly cleaned and fumigated upon vacating

Refer to point above. Perfectly reasonable.

What has made me uneasy is that the PM didn't sound confident about renewing their lease following the inspection, which I assume was mainly due to the issues above. PM has advised that she didn't expect we would have any issue finding other tenants......

I think I need to talk to her further. Yes, I do think you need to question why she has issues....

Yes, I think you do need to question her motives....did someone say reletting fees??? Hmmmm....I wonder....
As it is, if there is nothing in writing about pets not being allowed inside the house and the tenants comply with the request to remove the pool, she does not have a leg to stand on in terms of removing the tenants.

 

[tomermh]

I would say dont renew the lease, let them move to a monthly and reserve the right to give them a higher rent increase in six months time or evict them.

You cant really ask them to move on even if the lease is up.

 

[KateMelb]

The pool is a very serious risk. Now that you know about it, if a child drowns or is injured (not just the tenants' but a visitor) you can be sued for negligence. The law requires pools to be fenced to a certain height and standard. The local Council can also prosecute you if they find out.

These tenants clearly have no respect for you or your property - I'd get rid of them as soon as you can. In Victoria, you can serve a 120 day notice "for no reason" notice to vacate - not sure about other states.

Whatever you do, strongly suggest you ensure that pool is removed immediately.