Rent increase letter

[JanStu]

We are wanting to increase a tenants rent and would like some info on where to get the wording. Does anyone know where we can get a good letter?
The tenants are on a fixed term which expires in Feb 06, do we need to give 60 days notice of the increase?
Your comments would be appreciated.
Thanks
JanStu

[xris]

Hello JanStu,

Read the RTA and/or speak to TS about what happens when a fixed tenancy expires and if you want to keep the existing tenants on - on another fixed term or a new periodic. Do it now, before the existing fixed tenancy expires. It is different from a rent increase on an existing periodic tenancy, which is where, I assume, you get the 60 day notice idea from.


xris

[Lynda]

Hi there, Janstu,

I'm no expert, but it's my understanding that you can put up the rent as soon as the fixed term expires. Theoretically you don't need to give any particular amount of notice, although I give a month. This is one of the advantages, in my opinion, of a fixed term tenancy. The other is that, if you don't want to renew the tenancy at the end of the fixed term, you don't have to. You don't have to have a reason, you don't have to give notice (although you would, of course), you don't have to file anything with anybody. One of the downsides, of course, is that the tenant can choose to move out, again with no notice, at the end of the fixed term. That's why I always get in touch a month before, and sign them up to a new agreement. The new tenancy will be at the (usually) increased rent amount.

With regard to the letter advising an increase, in the case you describe, you can just write a letter to tell them what's happening. If they were on a periodic tenancy, then there's a good form letter available at your local Property Investor's Association. They have form letters to cover most issues all in a folder that you can buy for $20 (although, that was a few years ago, it may be more now). You may have to be a member to get that price.

Hope that helps...
Cheers,
Lynda.

[Cassandra]

Rent Increase- fixed term tenancy Renewal

Hi there

I send the following at least a month before a fixed term is due:

Dear ......,


Re: Fixed Term Tenancy Renewal


The fixed term Tenancy Agreement you have on the rental property at .................expires on .......... (end date) and we will need you to apply for a new tenancy to continue on as a tenant at this property.

Please contact me in the next day or so if you wish to renew the tenancy. If you do so; the renewed rent will be $......... per week & I have included a print –out of the latest Department of Building & Housing statistics to show that this new rent is at the market rent value for ...(number) bedroom houses in the area. Renewal will require me to meet with you and complete a new tenancy agreement with updated details.

If you do not contact me by (Date 10 days or so from letter date) ..........I will assume you do not wish to renew the agreement and will vacate the property on ...............(end date).

If you do not renew your tenancy a new tenant will be sought and, once found, you will no longer have the option to extend your occupancy and will be required to vacate the property.

From (date 1 x day after contact by date as above) this property will be advertised as being available for rent from (end date) You must continue to pay rent until ....(end date) even if you vacate beforehand.

Yours faithfully/sincerely

[JanStu]

Rental Increase

Thank you all for your help in this area. It's interesting to see how people differ. All the replies have helped. Thanks