Tenant motive to reduce the rent

After we had notified the tenants of rent increase, tenant started to raise a lot of unreasonable requests for maintenance works. I went to inspect the IP there are no major problems. For example, they required curtain replacement because they are too old, then I gave them 7 new curtain. They also showed their upset and keep requesting maintenance. So, I called tenants and told them that rent would not increase because they are good tenants and looking after my property well. They were happy and changed their behavior.

Supprisedly, I could ask tenants to return curtains so that I can get refund from them. I told them that old curtains are not too bad to replace, and new curtains are too costly for me. Can they return curtains to.

Conclusion, everyone has underlying motive. What they asked does not mean what they actually wanted.

How to manage such tenant behaviour in the future if we want to increase rent?

 

Get a new tenant.

 

Rent increase is just $10/week , equivalent with $500/year. It is not worth to let the IP vacant in 1 month and 2 week rent for letting fee.

 

On the other hand, hard to ever get a rental increase out of these tenants. Will the vacancy period be 4 weeks?

 

You do that for the next few years and it adds up though.

From their perspective, it's not worth the cost of moving for $500 a year.

 

I have considered that a PM might provide a degree of separation to avoid these kinds of situations?

I think you mean that they were happy that they changed your behavior.

I'm not sure you can return curtains once fitted without a valid reason.

 

Stores are under no obligation to refund or give you a credit note for change of mind.

 

Investment is a business,

If you can raise the rent, and "get away" with it, then you do.

It's the tenants choice to stay or leave.
They may leave on principal.
They may leave even if dont raise the rent.
They're not going to stay if it doesn't suit them just to make you feel better.
It goes both ways

 

I understand the temptation to keep good tenants but I wouldn’t be sacrificing years of increase for this. It may have been a bad reaction but probably would have settled down.

Most people won’t move out because of a small increase because if it’s at market rent (and you can be sure they would have gone online to see what else was out there) then they will quickly realise the cost of moving, the inconvenience and the change to their routine simply isn’t worth it to pay the same price anyway.

Put the rent up $10 a week and if they start to behave poorly then don’t renew their lease next time and find a new tenant and deal with maintenance requests per legislation. You shouldn’t be so cash flow poor on any investment property that you can’t take control of a situation as the landlord. $10 a week will add up and you might even get more on a whole new tenant lease(?).

My guess is that the increase will become a non-event after they come to terms with it.

- Andrew

 

Did the curtains cost around $500?

 

There's the first problem, right there. They didn't require new curtains, they wanted new curtains. That's a totally different issue. You don't have to supply new curtains because they are old.

So, how do you manage tenants? You say NO to upgrades & put the rent up to market rates all the time. That way there is no big increase & they are conditioned that rents go up. You fix genuine maintenance issues promptly & don't give in to stupid demands..

Having investment properties is a business & if YOU don't treat it as such, how can you expect tha your tenants will?

 

I can't work out what happened, so ......

Anyway, you pay....that is the way it usually works out

 

I totally agree with this.
It’s too hard in this mArket as well!

 

1 What market ?

2 Why agree to 2 weeks letting fee ?

 

Oh your a tough cookie, here I was thinking retirement would have laid out a red mat to walk all over

I like it, no BS, both do what is reqd !.....easy peasy, but so many PMs do not want it this way, they want LL to pay pay pay....even passing on the stupid requests gets my goat !

 

Haha, yeah, I'm a tough cookie. Too many tenants think that they can have whatever they desire & the LL will just do it, and the problem is that too many LLs DO do it for them. The best way to put one of these tenants back in their box, because the requests usually start the moment they move in, is to ask them if they inspected the property.....Well, guess what, the rent you pay is for that same property in that same condition. You want improvements? Ok then, I'm happy to provide improvements, but the rent will need to reflect that.

 

I'm more than happy to pass on stupid requests to the owner, after I've told the tenant that the pier has an end which is designed for jumping and they should investigate this option.

 

I have a friend who often says that he would like to give the offer of sex & travel. Always said in the nicest of tones (literally, that is). The meaning of this is to F OFF!

 

Try living with her for 18 years

I use common sense (I know, crazy) when passing on requests. If it's things that will improve the property and we can negotiate a rent increase (such as a split system) then I will pass it along with my recommendation, get some quotes and negotiate to increase the rent. Things like curtains I would too, providing the old ones are falling to pieces and it would likely become a maintenance item shortly anyway. I will also pass along stupid requests if I know the tenant and landlord have each others contact details, but often that would be this is what was asked and FYI this is what I've said sort of thing - depends on the client and how stupid the request is.

I've had a tenant request a split system during their tenancy and they didn't want to pay an extra $10 per week and sign another lease. Come lease renewal time they still wanted the split, so instead we increased their rent by $15 per week and signed them to another 12 month lease. They're paying an extra $5pw from the original negotiation from stubbornness, plus went an additional 6 months without a split system (through summer) all because they refused the original offer. Meh.

OP - at the end of the day if you're increasing the property in line with market there is no need for you to improve the property, just maintain it. Often tenants get confused.

I would stick to a reasonable rent increase where possible, action maintenance as required and do small improvements at their request if:

• You can negotiate further rent increase
• If it will increase the value of your asset
• If it will result in a shorter vacancy period (ie. in summer having a/c will put it towards the top of the list)
• You can negotiate a longer fixed term lease
• And above all, they're actually GOOD tenants that you want to keep and they don't tend to cause too much fuss on an ongoing basis

 

Listen the the Little One.