When will a rent increase be allowed?.

[Lizard]

I was going to check with tenancy services but their hours are 9 till 4:30pm.

Situation.
I will settle on a new property on Sept 9 subject to existing tenancies.

Bottom flat has new tenants that moved in on 16 July 2005 with a periodic agreement.

I will be signing a new agreement with them when we take possession.
Can I increase the rent before the 16th of Janurary or do they need to have 6 months before a rent increase?.

I thought my best bet might be to sign a fixed agreement till 16 Jan or start of Feb and tell them that the rent will be reviewed at this stage.

The top flat has been in existence for 5 years so I thought I would sign an agreement with them for an increased rental amount effective in 60 days time.

Thanks Liz

[drelly]

Hi Liz,

Assuming that you're taking the property with "vacant possession" in the agreement and you are signing them up on new tenancy agreements, then you can charge whatever rent they will agree to.

[Lizard]

When can the rent be legally increased?

No I am taking it on with the existing tenancies.

If I need to get new tenants I would rather be doing that in the Feb 2006.

Thanks Liz

[whitt]

I will be signing a new agreement with them when we take possession. I will settle on a new property on Sept 9 subject to existing tenancies.

Not sure what you mean. You are either taking over existing tenancies or signing up new ones.

If you are taking over existing tenancy they will be on present agreements. You could do a change of landlord form http://www.dbh.govt.nz/housing/tenan...agent_form.pdf
and possibly bond transfer http://www.dbh.govt.nz/housing/tenan...nsfer_form.pdf

otherwise if signing a new agreement fixed or periodic you could:
- tell them you will be moving it to market rent
-leave at present level and review in 6 months.
-Or keep at current level and dont tell them you may move rents in 6 months

[Heg]

Hi Whitt and all

What is best ? Is it best to -
1 - keep the existing tenants on the old tenancy agreements or
2- keep the existing tenants, but buy property with 'vacant possession' and just renew agreements (can this be done legally and if so, How?) or
3- give notice to existing tenants and find new ones?

Surely if the tenants have a good history, then it is best to keep them on, but how do you check this? Best not to take current landlords word I suspect?

[drelly]

If you're taking over existing tenancy agreements, then I don't think you can increase the rent for 6 months from their previous increase.

I was in the same situation a few months ago but had the vendor give notice to them and signed them up on new agreements the same day.

[cube]

Hi Whitt and all

What is best ? Is it best to -
1 - keep the existing tenants on the old tenancy agreements or
2- keep the existing tenants, but buy property with 'vacant possession' and just renew agreements (can this be done legally and if so, How?) or
3- give notice to existing tenants and find new ones?

Surely if the tenants have a good history, then it is best to keep them on, but how do you check this? Best not to take current landlords word I suspect?

Generally, vacant possession, and offer the existing tenants a new agreement on your terms. Also, as I learned from experience :-) don't rely on the vendor's word that the bond is lodged with Tenancy Services - check up yourself!

The risk is that, because the tenants are given at least 42 days notice when the property is sold, they may decide that now is a good time to move.

The existing tenants could still sign an 'application' form, allowing you to do your own Credit, Reference checks etc. independent of the vendor's.

cube

[drelly]

Cube has a good point. Keeping the tenants is not necessarily a good thing. How do you know that they're paying? Are there bonds? Will it be harder to increase the rent because of their expectations? what other unknown problems could be brewing away?

FYI, I bought a place a few months ago and increased the rent from $200 to $250/wk. There was a lot of whinging and threats to move but they're still there and paying on time. They now also mow the lawns and pay for the water rates!

[Fritz]

Hi Whitt and all
2- keep the existing tenants, but buy property with 'vacant possession' and just renew agreements (can this be done legally and if so, How?) or

Heg,

2 is what we do. You ask for vacant possession on settlement, but with the consent of the vendor you roll in and speak to the tenants right after you go unconditional, and tell them you will be taking over, if they wish they can apply for the tenancy with either your or your p/m aplication form, run your checks and if they stack up sign up a new tenancy with bond transfer or top up, there and then. Anybody failing your check will have to be moved out by the vendor.

F.

[Lizard]

Thanks for all your answers.

I called into tenacy services today and they confirmed that the tenants rent can not be put up for 180 days if I take on their existing lease.

We have already gone unconditional so I will probably go with what we have got with plans for a new year increase if they pay the rent otherwise get a new lot in the new year.

Now I can see the sense of the vacant possession clause!

Thanks Liz