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  1. #1
    Join Date
    Nov 2007
    Location
    Christchurch/Sydney
    Posts
    119

    Default Reno with tenant in the house??

    Hi all,

    I really want to renovate a house I own in Westport and get the rent up by $30 a week.
    My pm has sent me pics of a property similar to mine which has had a basic reno and is renting for $210 where mine is renting for $180.
    How do I renovate with a tenant in place? I believe he is on a periodic agreement. Just wanted to know my legal obligations.
    I am not worried about getting another tenant if he chooses to leave as Westport has a chronic shortage of housing with familes piled into caravans waiting for houses to become available due the mine expansion.

    Cheers,
    Emma

  2. #2
    Join Date
    Dec 2006
    Posts
    1,656

    Default

    To be seen as reasonable, I'd approach the tenant and tell him what you want to do, renovation-wise, and be upfront about the increase in rent. Basically give him the option - take it or leave it. Then with him making the decision, he can't complain after the fact. But I'm no lawyer.

  3. #3
    Join Date
    May 2004
    Location
    Bay Of Plenty, NZ
    Posts
    3,604

    Default Renovation

    Having seen someone do a reno with a tenant in situ, it may be easier to do as K1w1 wrote and explain to the tenant what you want to do, what is involved, the upheaval involved and estimated time for completion.

    The example of doing a reno with tenant (and children) in situ, it took three times as long and was extremely frustrating for both LL and tenants.

    Looking back in hindsight, the LL wouldn't do that again but would give tenant notice and then do reno.
    Patience is a virtue.

  4. #4

    Default

    Quote Originally Posted by emmajane6 View Post
    Hi all,

    I really want to renovate a house I own in Westport and get the rent up by $30 a week.
    My pm has sent me pics of a property similar to mine which has had a basic reno and is renting for $210 where mine is renting for $180.
    How do I renovate with a tenant in place? I believe he is on a periodic agreement. Just wanted to know my legal obligations.
    I am not worried about getting another tenant if he chooses to leave as Westport has a chronic shortage of housing with familes piled into caravans waiting for houses to become available due the mine expansion.

    Cheers,
    Emma
    I would be tempted to put the rent up now. If he pays it you are $30 up and not having to pay for reno yet. If he is not happy and leaves you can then do the rennovation as planned and re-let.

  5. #5
    Join Date
    Mar 2007
    Location
    Auckland
    Posts
    3,089

    Default

    You will find that a lot of tradesmen will shy away from doing anything at all major in a rental house with a tenant still in residence.
    The problem is always that the tenant may want the work done, but certainly does not want the doing of it. Therefore they will specify unreasonable restrictions - like no work to start before 9am and everybody to be out by 3pm. From a tradesman's point of view, what is he going to get done elsewhere between start time and 9am? or between 3pm and knock-off time?
    Thus he will cost that wasted time into your job, pushing up the cost.
    The tenant will also moan unceasingly about the mess and the painty smell. If you renovate the kitchen and the bathroom where is your tenant going to 'go'?
    I have seen this happen, and it's always full of agro.

  6. #6
    Join Date
    Nov 2007
    Location
    Christchurch/Sydney
    Posts
    119

    Default

    Thats exactly what I thought but they only moved in January this year so can I even put the rent up yet? My partner is a tradie and he hates working in houses with people in residence, plus I would prefer to get a better quality tenant in after the reno and I may even get 220-230 p/wk for it depending on how good the reno is.

  7. #7
    Join Date
    Apr 2006
    Posts
    4,017

    Default

    Quote Originally Posted by emmajane6 View Post
    Thats exactly what I thought but they only moved in January this year so can I even put the rent up yet? My partner is a tradie and he hates working in houses with people in residence, plus I would prefer to get a better quality tenant in after the reno and I may even get 220-230 p/wk for it depending on how good the reno is.
    Emma Jane,

    Read what you have just written. You will find the answer to your original quesion there.

    Paul.

  8. #8
    Join Date
    Nov 2005
    Posts
    3,286

    Default

    This sort of thing is never easy. First you should gauge the willingness of the tenant to cooperate without telling them exactly what you want to do. You will be the best judge of this from knowing the tenant. If they will cooperste then fine, but it is still not easy and you have to be very careful. If they will not cooperate then you have no choice but to remove them. It is much much better to do large improvement/maintenance in an empty house. Forget the lost rent and think of the potential loss to you at the TT and a complaining tenant.

    If you think they will not cooperate I would also be tempted to put the rent up as halfway says. If you don't want them around even if they accept the increased rent then give notice now. Do not discuss the plans in any detail at all with the tenants.

    In nine times out of ten you are better with an empty house.

    xris
    Last edited by xris; 16-05-2008 at 06:35 PM.

  9. #9
    Join Date
    Nov 2007
    Location
    Christchurch/Sydney
    Posts
    119

    Default

    but can i just put the rent up for no reason if they only moved in in january?

  10. #10
    Join Date
    Nov 2007
    Location
    Christchurch/Sydney
    Posts
    119

    Default

    p.s the tenant owes me 400 from lost rent but he obviously knows his rights as he didnt let the not paying continue for longer than 3 weeks thus we couldn't do anything to get him out!


 

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