Lease renewal - property manager responsibilities

Discussion in 'Property Management' started by Chill2205, 11th Mar, 2020.

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  1. Chill2205

    Chill2205 Well-Known Member

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    Hi all,

    While searching through prior emails to find when my tenants lease was up for renewal, I noticed that the 12 month lease agreement ended at the start of the month.
    I emailed my property manager asking when the lease renewal is due (knowing the answer).
    They responded saying the current lease has expired, would you like to renew for another 12 months?
    Now my question is, shouldn't the property manager be proactive about this and have sent out a letter/email to me like 3 months prior saying that 'lease will be up for renewal, would you like to offer another 12 months, increase rent'?
    If so, what should I go back to the property manager with? Fee discount/refund?

    Thanks in advance
     
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  2. Michael Mitchell

    Michael Mitchell Property Manager Business Member

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    Yes they should and let you know if the Tenant wants to enter into a new fixed term or roll on to periodic and then seek your instructions on going forward, as for your second question, from what I understand, the tenancy has simply rolled onto periodic and is business as usual, you’re not actually out of pocket for anything so no reason to seek compensation - just let it be a wake up to them that they need to be on top of this stuff otherwise you’ll be shopping around for another PM etc
     
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  3. Chill2205

    Chill2205 Well-Known Member

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    Would have been annoying if I was planning on increasing the rent, as the increase would be delayed for a few months. Thanks for the response
     
  4. Michael Mitchell

    Michael Mitchell Property Manager Business Member

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    [QLD] They are essentially two different actions though and what I mean by this is, say 2+ months out you offered the Tenant a new fixed term lease with an increased rent, they don't have to agree to that, and the current rent has not changed. To increase the rent you need to formally notify of a rent increase, giving 2 months notice, and there cannot be more than two rent increases per year. So if you did want to increase the rent coinciding with the lease renewal date, best practice is to issue a notice of rent increase as well as the new fixed term, so whether they agree to a fixed term or roll over to periodic, the rent increase is happening regardless. Again, either you need to be having that conversation with your PM early on or the PM needs to be having it with you - every Lessor-PM relationship is different, some micro manage, some want the PM to make the call and guide them etc.
     
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  5. Chill2205

    Chill2205 Well-Known Member

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    Melbourne
    Makes sense, I have always tied a rental increase to a lease renewal so over time have started treating the two as one.
    Appreciate all the info Michael
     
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  6. Michelle Evans

    Michelle Evans Well-Known Member

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    Victoria we do both at the same time usually 3 months before the end of a fixed term (increase notice is 60 days plus service - so often 67 days unless the tenant has agreed to electronic service of notices).

    I'm extending my reviews to 4 months out now because with the changing legislation - one of the only ways to terminate an unsavoury tenancy is a 90 day end of fixed term notice to vacate (applies to the first lease only now). If you miss that window, you're stuck unless the tenant does something bad enough to warrant an eviction (even paying your rent late will be harder given they'll have 4 opportunities in a year to pay right before any vcat hearing before you can continue to request a possession order)
     
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