Electric gate issue and rent increase

I've had my IP in QLD for a couple years and the tenants have been living there since before the purchase. In terms of rent increase I have been following the CMA provided by the PM which has been to leave as is until a couple months ago where the CMA was shown as +$10. So the tenants were notified but haven't signed.


For awhile the electric gate has been having problems and we sent out an electrician and gate specialist 3x to try to fix it. Worked for awhile then malfunctioned again. Then replaced parts etc. Long story short the gate needs to be replaced. I was quite fed up with the back and forth and thinking it would be better to replace it with a non-electric gate. The replacement for an electric gate is going to cost $3K+.


The tenant has commented they are not happy with a non-electric gate and that they'll reject the rent increase.


I'm wondering what to do now.


First question, is there a massive difference in electric vs non-electric apart from convenience? Isn't it as secure?


Second, is it rational for the tenants to reject the rent increase based on this?


At the moment I am thinking it's a better financial decision to go ahead with the non-electric gate given the cost the replace. Should I stay my ground with the rent increase based on the CMA or should I leave the rent as-is?

 

Having lived on properties with electric and non electric gates. I find a non electric a big inconvenience, especially if you are use to an electric. The main times are early mornings in the cold, or rain. But they are also a pain to maintain. If I were you, I would not increase for a 6 month lease, have them agree to a manual gate, then reassess a rental increase in a new lease in 6 months. Will cost you $260 in lost rent compared to 3k for a new gate.
Remember you are taking away a luxury that was part of the deal when they rented, and it’s your job to make sure it works. They should be compensated for the loss of the gate.

 

Do you even need the gate at all? Just leaving it open until an electronic gate can be justified?


Or simply remove the motor and let them use it manually

 

If you replace the motor/controller, it's a repair and may be able to be an instant deduction. As a bonus the tenants will pay you an extra $500

 

1. Electric gate is a huge plus
2. Rent increase, you don't need to "ask", you can "tell", has your PM been saying otherwise?

 

I would replace the automatic gate with a manual one (in order to prevent any problems in the future). Don't increase the rent and also don't renew the lease. Once the tenants move out, you can find a new tenant easily and charge a higher / increased rent.

 

The central heating is stuffed, here have a candle?

 

They need it to secure their dog within the property. They've been using it manually since it broke.

2. Yeah maybe I didn't word that question well. Maybe my question is more like, as a landlord am I required to maintain the electric gate? Wouldn't my obligation be to provide a secure property entrance, which a manual gate also provides?

 

Interesting analogy. Is it the same though? Would a more appropriate analogy be the aircon's remote capability is irrepairable so you need to walk over and turn it on/off manually?

If the function of the gate is to secure the property entrance and a non-electric gate serves that purpose, isn't the property maintenance requirements met?

 

I don't think there is an easy answer.
The purpose (function) of a gate is to secure the property, regardless it's an eletric gate or manual gate. However tenants can argue that their rent includes the use of functional electric gate. This is why I believe the best option is to change the gate to a manual gate and tell the tenants you are not going to increase the rent. But when the time for renewal comes, you just don't renew the lease and increase the rent when new tenants move in.

 

yes you are required to maintain the gate. That analogy is a bit off. Your tenants leased your property with an electric gate, the function of an electric gate is to open automatically. It’s like saying the function of an Aircon is to keep the house cool, so i will give the tenants a fan to replace an aircon.

 

You need to fix the gate.

 

The problem with leasing a home with all the bells & whistles is that you need to MAINTAIN those bells & whistles.

They leased a home with a working electric gate. So, you will need to fix that gate, especially if they have a dog that needs to be kept in.

However, playing devils advocate, can you have a discussion with them about suitable alternatives for the dog, as I'm sure it's less than perfect having the dog roam in the driveway. I'd personally prefer (if I had a dog), that it have access to the backyard, but not the front, as they can escape easier from the front & get hurt. This does not mean that you don't have a liability to fix that gate.

 

'The elevator doesn't work anymore but the stairs do'.
Where do you draw the line?

If you expect the property to be returned to you as it was prior to being let, its reasonable for the tenants to expect it to function the same too.

Have the fight and maybe you'll even win, eventually enough people will try it on too and yet another rule change will result 'that always favors tenants'.

 

A guard cat?

 

Or five.