hello
if we bought a property with tennant in place who has signed a contract at a set rental rate till Jan ’05, as new owners is there a way we can “up” the rental?
The agent involved has admitted it should be more and it’s one that “slipped through the system and didn’t get increased.
Thanks, diane
An agreement is a contract and unless there is a clause in the lease allowing you to revise the rent you are stuck with it I would think.
Pisces
I agree with Pisces. i think you might be stuck. Tell the agent to drop their fee if they’ve admitted to the mistake!!
Cheers
Melyep cant change the contract, bought with tenants and their lease.
Originally posted by everdine:hello
if we bought a property with tennant in place who has signed a contract at a set rental rate till Jan ’05, as new owners is there a way we can “up” the rental?
The agent involved has admitted it should be more and it’s one that “slipped through the system and didn’t get increased.
Thanks, diane
Give the tenant, say an air-con. or a new pergola, you may has a good “excuse” to increase the rent.[
]Julian [
]THERE IS ALWAYS A BETTER WAY!
the costs may be more than the wanted rental increase!
even if there was the added incentive.Just on a note of warning, my agent had not change details on their software program, they listed tenants paying rent at 200 and taking 220 a week from them, I said, I didnt think it meant much, but my bank manager would love to see the correct details. SO she said, oh my god! that is affecting the rent paid to date. You see for the last 12 months, tenants have been paying the increased rent at 220, while the old rent was still listed at 200, giving them in effect a false credit.
So 20 dollars a week for 52 weeks…..worth of credit…guess what, lease is up for renewal, and I have the tenants from hell, this is going to go down like a lead balloon, and …..this is not good customer relations…still PM has to wear this one, their fault.
elves
Once the lease is signed, sorry the rent is in place until the contract ends, no matter how much you improve the proeprty.
Jarrod
Jarrod Lane Real EstateJarrod, that is true, unless the tenants agree to pay more. At which point you would probably re sign the lease, so really have a new one. But it can be done.
Cheers
MelEverdine,
How much are you talking about. $10 per week? More?Sometimes, a slightly below market rental is the best incentive for the existing tenants to remain.
If you assume two weeks vacany when tenants move out, the increase (if it pushes them to move), is eaten up well and truly.
I would be more inclined to pressure an agent to ensure 100% occupancy ie getting the right tenants.
James
Check the lease agreement if the lease is between the tenant and the previous owner then you can get things done about it as it’s not legaly binding anymore.
Check it with the Tennant board or a solicator.
ChrisAll post are IMHO.
Chris, I think you then need to look at the contract of sale. If it was purchased ‘subject to tenancy’ I think you inherit that lease.
Cheers
MelI think most of us were thinking that
If you find out this sort of thing before the deal is done, can you request vacant possession if there is a lease still to run?
landlord to be, no you cannot if it’s a fixed lease. The lease has to be honoured. However, a monthly tenancy you can request to be vacant possession, tufing the tenants out.
Cheers
Mel[offtopic]I LOVE these smilies!! Seeing them for the first time, haven’t been here for a couple of days.[happy3] [inlove][thumbsupanim]
ANyway, back on topic, I thought that even if a lease is in place, in the case of a property being sold, that the vendor has the right to end the lease early as long as a month (after exchanging contracts) notice is given to the tenant.
In any other cases it would be breeching the lease, but not in case of a sale.
Well, I read this somewhere, don’t ask me what book it was in. [bonjour]Celivia
WHAT book was it in ?
REDWING[satan]
“Money is a currency, like electricity and it requires momentum to make it Effective”
Everdine, I think you need to see the positives. If you had bought the place untenanted you may have had a vacancy period anyway. You may have had only a six month lease, and then another possible vacancy.
Hopefully these are good tenants (you checked that one?) you may not be so lucky next time. They may be willing to sign a higher rent in Jan esp with a ‘bonus’.
I would be more inclined to be concerend on why these tenants ‘slipped through the net’ from your agents point of view. Are you taking his word that the rent should be more (after all, he was selling you the property) or have you compared the rents in the same area/street.If your tenants are good do you really want to upset them and lose them? I had a property leased slightly below market ($20 below), was only vacant 2 days in 13 years and my last tenants lived there for nine of those years.
The rent dollar sign is not the only thing to take into account, it pays to be a reasonable land lord. I would probably wait til Jan if the tenants were worth it but as with the others, it sounds as if you will have to anyway.
sunshinesunshine,
I agree. Fact is, if everdine bought the place, perhaps it was at a price which reflected how much the tenants were paying. I bought an IP a few months ago, lease had expired tenants have now moved out. Just got in new tenants who pay $30 more a week than when I bought it! (The new ones are now paying market rent- it’s still cheap). I think if the place I bought had market rental, I would have paid much more for the place.
By the way, it is not entirely up to the PM to raise rents- it’s up to the owner to reinforce that- if that’s what the owner wants. As with sunshine, I have had very long leases on past IP’s, and have chosen not to raise rents. I *hate* raising rents on existing tenants. It is also likely that if you make a rent hike of a large amount on existing tenants once the lease is finished, they’ll move out. Time for new tenants in Jan 05, methinks, everdine.
kay henry
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