Reno with tenant in the house??

[emmajane6]

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

[k1w1]

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.

[essence]

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.

[Halfway To Paradise]

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.

[flyernzl]

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.

[emmajane6]

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.

[SuperDad]

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.

[xris]

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

[emmajane6]

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

[emmajane6]

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!

[xris]

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!

Rent cannot go up for six months from the start.

How have you lost $400? Is he in arrears for $400? That's not the same.

I would just send him a letter ending the tenancy in 90 days - check here how to do it properly.

Also, get your rent paid to you - more detail needed.

xris

[Keys]

from lost rent but he obviously knows his rights

I would just send him a letter ending the tenancy in 90 days

If you need to get them out with a 90 day notice then do it immediately. Otherwise the tenant may give you a 10 day notice (doesn't matter what it's for) and then you're stuffed for a 90 day notice for a while.

[essence]

Read the Residential Tenancy Act!!!

Spend some time reading the RTA. When you're finished, stop, have a cup of tea/coffee/fizzy whatever, and re-read it.

You will be amazed at the understanding you will received about your rights as a LL and the responsibilities of a Tenant.

IF a tenant is one day overdue with their rent you can issue then with a 10-day Notice to Remedy (Rent) and yes, there are tenants out there that know the systems and will be continually paid up but late, if that makes sense.

Once there is a pattern of continual breaches of the Tenancy Agreement (TA) you can apply to the TT for termination of tenancy. And while the tenant is technically not in breach of their TA, a history of late payment can work in the LL's favour.

If all else fails, issue a 90 day Notice to Quit (you are not required to give a reason AND DON'T DISCUSS THIS WITH THE TENANT IF THEY RING YOU!!!). The tenant will get poo-ey about it and stop paying their rent. As soon as their rent is a) not been remedied by the 1st 10 day Notice to Remedy (Rent) and b) you have needed to issue a 2nd 10 day notice (for the 2nd lot of rent unpaid) and c) is 21 days overdue, you can go to TT and ask for immediate termination.

There are ways and means of getting rid of tenants that are fully legal. IMHO, you should ALWAYS abide by the rules of the RTA. There are many, many LL's who don't lodge Bonds with the TS Bond Section and who are nasty to their tenants.

These are the LL's that give us law-abiding LL's a bad name.

Sorry, but this is my pet hate, when all LL's are given a bad rep(utation) by a few unprofessional LL's.

A rent increase can only occur 180 days from the last increase. However, a Notice to Increase rent can be sent on the 120th day from the last increase (60 days BEFORE) the next increase, so that rent will increase on the 180th day.

Makes sense?? No, - read the RTA again!!

[Keys]

Spend some time reading the RTA. When you're finished, stop, have a cup of tea/coffee/fizzy whatever, and re-read it.

You will be amazed at the understanding you will received about your rights as a LL and the responsibilities of a Tenant.

IF a tenant is one day overdue with their rent you can issue then with a 10-day Notice to Remedy (Rent) and yes, there are tenants out there that know the systems and will be continually paid up but late, if that makes sense.

Once there is a pattern of continual breaches of the Tenancy Agreement (TA) you can apply to the TT for termination of tenancy. And while the tenant is technically not in breach of their TA, a history of late payment can work in the LL's favour.

If all else fails, issue a 90 day Notice to Quit (you are not required to give a reason AND DON'T DISCUSS THIS WITH THE TENANT IF THEY RING YOU!!!). The tenant will get poo-ey about it and stop paying their rent. As soon as their rent is a) not been remedied by the 1st 10 day Notice to Remedy (Rent) and b) you have needed to issue a 2nd 10 day notice (for the 2nd lot of rent unpaid) and c) is 21 days overdue, you can go to TT and ask for immediate termination.

There are ways and means of getting rid of tenants that are fully legal. IMHO, you should ALWAYS abide by the rules of the RTA. There are many, many LL's who don't lodge Bonds with the TS Bond Section and who are nasty to their tenants.

These are the LL's that give us law-abiding LL's a bad name.

Sorry, but this is my pet hate, when all LL's are given a bad rep(utation) by a few unprofessional LL's.

A rent increase can only occur 180 days from the last increase. However, a Notice to Increase rent can be sent on the 120th day from the last increase (60 days BEFORE) the next increase, so that rent will increase on the 180th day.

Makes sense?? No, - read the RTA again!!

Good advice, mostly correct.

[emmajane6]

ok cool thanks.
i have a property manager who should have enforced this to collect the $400 in arrears but they didnt and they still havent and it was months ago but they are the only p.m's in town so can't really switch as I am in absentia - will find the rta on the web somewhere and have a good read.