Seems i got it wring in Water usage to the tenant

Discussion in 'Property Management' started by Darlinghurst Boy, 5th Apr, 2016.

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  1. Scott No Mates

    Scott No Mates Well-Known Member

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    IIRC the RTA only applies to leases <3 years.
     
    Scott No Mates, 6th Apr, 2016
    #21
  2. wylie

    wylie Moderator Staff Member

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    But a residential lease cannot go over two years, can it? I'm not sure as I've never issued a longer lease than 12 months(ish).
     
    wylie, 6th Apr, 2016
    #22
  3. wylie

    wylie Moderator Staff Member

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    And thinking further, what residential tenant would agree to sign a three year lease (if it takes it out of the residential arena) and also agree to pay rates, water infrastructure charges? Wouldn't they move to the next house without those onerous and costly clauses that penalise them, when the house next door doesn't have them.
     
    wylie, 6th Apr, 2016
    #23
  4. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    Looks like a worthwhile thread. The (personal) criticism towards OP is/was unwarranted.
     
    Skilled_Migrant, 6th Apr, 2016
    #24
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    @wylie - security of tenure. Many tenants want to move closer to schools etc for 5-6 years without fear of vacation notice.

    The Defence Housing leases are a commercial based 10 year residential lease.
     
    Scott No Mates, 6th Apr, 2016
    #25
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  6. Scott No Mates

    Scott No Mates Well-Known Member

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    No - it's just been hijacked.
     
    Scott No Mates, 6th Apr, 2016
    #26
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  7. wylie

    wylie Moderator Staff Member

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    But with normal residential houses, who is going to go for the three year lease (if it is even allowed for a residential property) and pay rates, water infrastructure? I cannot imagine any situation where there are two houses and they would choose to pay costs over not paying them?

    We are not talking Defence Housing leases here. That is very different.
     
    wylie, 6th Apr, 2016
    #27
  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Does it mean that the tenant is going to be paying more rent? No (the rent should be lower). BUT they'll be paying (or reimbursing the outgoings) - if market rent tanks but insurances/sewer/rates etc skyrocket you don't lose out & the tenant is on a lease for the contracted period.
     
    Scott No Mates, 6th Apr, 2016
    #28
  9. Chilliblue

    Chilliblue Well-Known Member

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    @wylie I have one in NSW with community housing and they are one 3 year leases with rental increases detailed and 3 other tenants on 2 year leases with the annual increases nominated.

    As to @Darlinghurst Boy posts, whilst they may seem trivial to us older investors who have been around the block, there would be soon to be / new investors who would thinking along the the same lines so a little consideration to those people when answering could go a long way.
     
    Chilliblue, 6th Apr, 2016
    #29
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  10. Scott No Mates

    Scott No Mates Well-Known Member

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    Scott No Mates, 6th Apr, 2016
    #30
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  11. wylie

    wylie Moderator Staff Member

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    Is the community housing lease a normal lease, or specific to that entity? I'm thinking more for your garden variety residential lease. I just cannot imagine anyone agreeing to sign up to pay for water infrastructure and rates when they can rent the house next door or next street without it. I believe it cannot be done a normal residential lease, but I'm only going by what I've read on here. I think two years is the maximum lease I could write (but happy to be wrong).

    I don't even like two year leases. Things can change a lot in two years and even with a rental increase written in, you could still find yourself too low and have to wait a long time to play catch up.
     
    wylie, 6th Apr, 2016
    #31
  12. Chilliblue

    Chilliblue Well-Known Member

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    Community housing is a specific lease. They were a tenant that I inherited several ago and they have been one of my best to date.

    As to the 2 year tenants, all have a minimum 3-5% increases and so far no lease has been behind in the market rate at the end of their terms and we have not had to pay any leasing fees. These tenants are what my partner calls "lifers" and are making my IP their home which means I have great tenants looking after my properties.

    They are also the ones that I have less issues with.
     
    Chilliblue, 6th Apr, 2016
    #32
  13. wylie

    wylie Moderator Staff Member

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    So, it would be interesting to hear from the legal people on here whether a solicitor writing a clause in a normal residential lease is doing the wrong thing by writing in that the tenant pays the water infrastructure charges, plus water usage plus rates?

    And I guess I don't pay leasing fees, so I don't have to take that into account. But I understand it is a consideration if using a PM.
     
    wylie, 6th Apr, 2016
    #33
  14. KayTea

    KayTea Well-Known Member

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    It would be nice if this happened in QLD. I've had to pay the whole bill, then get the property manager to contact the tenants, so that I can be reimbursed for their water usage. Let's just say it's not going so well. The bill I paid, in full, in January is still waiting for reimbursement, and the tenants are 'crying poor'.
     
    KayTea, 6th Apr, 2016
    #34
  15. Azazel

    Azazel Well-Known Member

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    Azazel, 6th Apr, 2016
    #35
  16. dabbler

    dabbler Well-Known Member

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    I always send the whole bill to the PM, I would not listen to any advice from the local council unless it was an official threatening letter, or fine, or court order to pay ( or my place will be sold cheap to a PC member in a secret auction sent to a select few).
     
    dabbler, 6th Apr, 2016
    #36
  17. Joynz

    Joynz Well-Known Member

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    Hi Dabbler

    What has the water bill got to do with Council?
     
    Joynz, 6th Apr, 2016
    #37
  18. dabbler

    dabbler Well-Known Member

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    Many councils handle water too.
     
    dabbler, 6th Apr, 2016
    #38
  19. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Council seem to control the Water on the NSW Central Coast unlike in Sydney .
     
    Darlinghurst Boy, 7th Apr, 2016
    #39
  20. TMNT

    TMNT Well-Known Member

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    assuming you are a first time investor, unfortuantely, thats one of the semi hidden costs of owning an IP, yeah it sux, I agree, but you really have to suck it up,

    one of my properties is $1300 per year in what I call them "water service" fees,

    its like council rates, it sux, but you gotta pay for them
     
    TMNT, 7th Apr, 2016
    #40
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