Will this possible? To pay rent early to avoid the increase.

[Superstitionist]

Let's say a letter has sent out to the tenant to notify the rent will increase in 2 months time (eg: 01/07/2008), and the tenant has accepted it.

But the tenant try to pay rent in the old rate before 01/07/2008 to avoid the increase for an extra month.

Is this possible...

Super.

 

[knightm]

As far as I can tell its fine to prepay rent at the old rate, but the property managers computer will then calculate the difference (say $20 per week) as an accruing arrear and when this accumulates (say to a weeks worth of rent) then they will send a nasty letter demanding the rest.

It wont work.

 

[alplant]

One of our tenants got an extra week at the old rate by doing this. I'm pretty sure it wasn't intentional though, just the way the rent payments fell. We have changed agents now so we will just let it go but we wouldn't have let a month slip by.

 

[Belu]

whats the difference? is it worth annoying the tenant over it?

 

[Superstitionist]

One of our tenants got an extra week at the old rate by doing this. I'm pretty sure it wasn't intentional though, just the way the rent payments fell.

I am pretty sure my tenant was intentional though...

He used to pay between due date to several days late since he rent the place, but this time he was paying 1 week earlier...

I asked the agent to follow it up, but instead he try to convince me that is OK and simply take the increase start from next month...

Super.

 

[Superstitionist]

whats the difference? is it worth annoying the tenant over it?

I think I am more in finding out if the tenant is eligible to do that rather than the actual amount. Just in case the tenant is paying a few months in advance...

Super.

 

[alplant]

Yeah our agent did the same thing but because it was only the one week and we were giving them the shove anyway (the agent not the tenant , they are actually good tenants) we just coped it sweet.

I noticed that the new lease start date was a week later to cover it as well. Have a look at the dates on the lease in your case. If the dates on the lease cover that month then I would think the tenants will have to make up the difference, if not then probably they won't, not sure.

 

[alplant]

I think I am more in finding out if the tenant is eligible to do that rather than the actual amount. Just in case the tenant is paying a few months in advance...

Super.

I wondered that myself at the time I must admit. Tried to get an answer from the agents but they were more than a bit evasive. That's just one of the reasons we are changing.

 

[PrimeCommercial]

So I wonder if a tenant pays for 6 or 12 months in advance whether the rent can be increased during that time? I've heard several stories of tenants paying upfront to secure a property.

 

[Superstitionist]

So I wonder if a tenant pays for 6 or 12 months in advance whether the rent can be increased during that time?

This is exactly what I try to find out, especially the PM also try to cater for this extra month and draw up the lease with next month as the starting month, which means the next review will be 1 month late as well.

Super.

 

[knightm]

From a legal perspective it makes no difference whether rent is paid at the due date or in advance, the rate required from start to finish dates on the lease is the amount required. If you choose not to enforce a minor deviation from this coz you like your tennants thats up to you, but legally they are required to pay what is set out in the lease. If you want to negotiate something like this in advance (either as a tennant or a landlord) then it should be doable but all parties need to understand what the arrangment is and write it into the lease.

 

[Superstitionist]

I understand what you are saying, but the situation is like this (the date is made up for simplified):

Original lease start from 01/01/2007 to 31/12/2007, notify tenant the rent will increase start from 01/01/2008 to 31/12/2008, but before 31/12/2007, the tenant paid old rate to cover the month January, and since the tenant has paid, the PM arranges the new lease as from 01/02/2008 to 31/01/2009.

So in actual fact, the tenant is in periodic lease for January with no set rate (or the old rate).

Super.

 

[Xenia]

The tenant will still owe the difference calculated from the time the rent increase was in place and would therefore technically be in default.

 

[Xenia]

From a legal perspective it makes no difference whether rent is paid at the due date or in advance, the rate required from start to finish dates on the lease is the amount required. If you choose not to enforce a minor deviation from this coz you like your tennants thats up to you, but legally they are required to pay what is set out in the lease. If you want to negotiate something like this in advance (either as a tennant or a landlord) then it should be doable but all parties need to understand what the arrangment is and write it into the lease.

You cannot deviate anything that is written into a lease agreement. Either up or down. If a tenant has accepted a rent increase then it must be enforced from the date it has been agreed.

If you were accepting rent even $1 below what it should be and the tenant defaulted, you will not be looked upon favourably at a tribunal hearing.