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Vacate notice & rent increase?

Discussion in 'Property Management' started by Owlet, 2nd Nov, 2015.

  1. Owlet

    Owlet Well-Known Member

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    Hi

    We have issued a 120 day notice to vacate. (I wasn't aware we could have issued 90 day end of fixed lease vacate at the time) New PM has recently asked how tenant is going in securing a new place and has offered to help. Tenant has not started looking elsewhere.

    Can you issue a rent increase notice if you have issued a notice to vacate?

    If my tenant chooses to play the system they will not be out this side of Christmas. The house is in a high demand holiday area over summer and holiday rates apply. Can they be sent a notice that from x date holiday rates will apply?

    I don't want the money. I want them out of the date notified. We have genuine repairs and a structural issue to be looked at. To be fair we issued 120 days. 60 days of that was/ is periodical so they could have left earlier with 14 days notice.

    Thanks in advance for responses
     
  2. thatbum

    thatbum Well-Known Member

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    If I wanted my tenants out, I would just ask them to leave early, or give some incentive. Not try some punitive rent increase.
     
  3. Owlet

    Owlet Well-Known Member

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    What incentives would you offer?

    Our PM has offered helping them find somewhere.

    They only need to give us 14 days to move earlier - we would waive this if they wanted to move out tomorrow.
     
  4. wylie

    wylie Moderator Staff Member

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    You could offer them $1k to cover their moving expenses. They may move their things themselves and see the $1k as "free money" (especially as they know they must move anyway). They may laugh at the $1k offer. You can start there though and see what happens. Neighbours were handed $10k to move out and allow vacant possession for a sale. They would have laughed at $1k. Depends on the people really.
     
  5. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I've offered money along with a bond refund with no questions asked, they were out a fortnight later.

    If you give a lot of people 120 days notice, they'll start looking for a new place at about day 90.
     
  6. Travelbug

    Travelbug Well-Known Member

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    Do they know you are happy for them to move sooner? 120 days is a long time. Maybe they think it's too early to start looking?
     
  7. Xenia

    Xenia Adelaide Property Manager Business Member

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    If tenany continues after the expiry of a fixed term lease then yes you can issue a rent increase notice within the periodic agreement that the tenants are currently under.

    You need to ensure that the tenants don't take this as an extension of lease if you are intending for them to be out by a certain date.

    In the same notice, I would also make it clear to the tenant that they can issue a 14 day notice to vacate within the 120 days that you gave them .

    Also note The amount of notice that a tenant needs to be given to issue a rent increase in your state.

    If the notice to vacate has been issued correctly and they are still residing in the property after that date you can apply to tribunal to have them evicted on the grounds of Lease not renewed.

    That is why it is very important that if you do a rent increase it is done in such a way that it cannot ever be mistaken as extending the lease.

    The pm should be able to work this out according to correct legislation and word it all correctly. None of this is difficult but needs a professional to put it all together according to your instructions while protecting your interest to not further extend lease at the same time.
     
    Last edited: 2nd Nov, 2015
  8. Owlet

    Owlet Well-Known Member

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    Thanks for the suggestions. Paying them to leave is worthy of further thought.

    After thatbums comment I thought of
    -offering to pay the bond for the next place until theirs was returned
    -advising that we would clean the carpets and attend to lawns and garden
    -hire a skip for them?

    Xenia - yes I was wondering if an increase would give them the wrong idea.
    Tribunal - it is unlikely that we would get a tribunal date before Christmas.

    I guess there is plan B - if she is not out on x date, jump on the net find a last minute deal and take a holiday. (I knew I should have sorted the passports already!)
     
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  9. wylie

    wylie Moderator Staff Member

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    Maybe offer $1k if they leave by xx date, and $2k if they leave by xx date. That will give them extra incentive.
     
  10. Observer

    Observer Well-Known Member

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    If sooner or later I needed to move anyway I'd be glad to get $1k for leaving earlier. With $2k I'd consider moving out next day :D.
     
  11. joel

    joel Well-Known Member

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    I would move house any and every day if I got $10k for it!
     
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  12. Owlet

    Owlet Well-Known Member

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    Thank you for all the suggestions. The tenant was successful in purchasing their own home at auction and is vacating.
     
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