Want to increase rent during fix lease period - workaround

Discussion in 'Property Management' started by freddy, 25th Oct, 2018.

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  1. freddy

    freddy Well-Known Member

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    Hi all,

    Currently have a 12 month lease on an IP that's due to expire May'19. Is it possible to re-contract earlier ie from now for a new 2 year lease so I can increase rent?

    Thank you.
     
    freddy, 25th Oct, 2018
    #1
  2. wylie

    wylie Moderator Staff Member

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    You can ask the tenants if they want to mutually agree to sign a new lease, but why would they?
     
    wylie, 25th Oct, 2018
    #2
    qak likes this.
  3. D.T.

    D.T. Specialist Property Manager Business Member

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    What state?

    Most of the states legislations say something along the lines of 12 months or by 'mutual agreement'. So theoretically possible.

    Unless its a long way beneath market (why?) or something has changed/improved there (what?) its a pretty greedy move. Just do 12 month increases.
     
    D.T., 25th Oct, 2018
    #3
  4. freddy

    freddy Well-Known Member

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    I havent increased rent in 18 months and tenant asking additional improvements so its a good leverage to increase rent when these are done.
     
    freddy, 25th Oct, 2018
    #4
  5. wylie

    wylie Moderator Staff Member

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    What improvements are they asking for?
     
    wylie, 25th Oct, 2018
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  6. Shogun

    Shogun Well-Known Member

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    What will it cost you to find new a tenant if they decide to leave next May?
     
    Shogun, 25th Oct, 2018
    #6
  7. Brady

    Brady Well-Known Member

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    Have you agreed or started the additions yet? Would agree on the lease amendment before starting.
     
    Brady, 25th Oct, 2018
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  8. Lil Skater

    Lil Skater Well-Known Member

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    If they're asking for improvements (ie. Air conditioning when there isn't any) renegotiate the lease first. Generally speaking in most states you'll find something along the lines of mutual consent to end a tenancy and/or renegotiate.
     
    Lil Skater, 25th Oct, 2018
    #8
  9. dabbler

    dabbler Well-Known Member

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    You can if they agree....at same time you do not need to do improvements right now. Or ever.
     
    dabbler, 25th Oct, 2018
    #9
  10. TMNT

    TMNT Well-Known Member

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    This rise in rent all. Seems to be in bad faith to be honest
    Maybe we haven't heard the full Story
     
    TMNT, 25th Oct, 2018
    #10
  11. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Yes you can, with mutual agreement. I've done this plenty of times- e.g. we'll have an Air-Conditioner installer and they agree to increase rent by $10wk mid-term.
     
    Tom Rivera, 27th Oct, 2018
    #11
  12. Buynow

    Buynow Well-Known Member

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    Seems ok if you are improving the property (rather than just repairing). If in Sydney, rents are fallling so might be hard to get an increase
     
    Buynow, 27th Oct, 2018
    #12