Rent increase

[bigpoppa]

Greetings everyone.I have tenants on a one year fixed tenancy which expires in May this year. I understand that I cannot increase the rent during a fixed tenancy. Can a 60 day notice of rent increase be given prior to the fixed term expiry, thus making the rent increase effective from May, or do I have to wait untill the fixed term is up, and then issue the 60 day notice?

[toby]

To the best of my knowledge go for it.
Even with a fixed tenancy you can have a clause that you can increase the rent.

[janesco]

Welcome to the forum Bigpoppa

This is not my area of expertise.... insert not an expert clause....

It would appear to me that if you have a fixed term then at the end of the term you can renegotiate from scratch... In other words if you want them out at the end they should go. If you want to increase rent you renegotiate. If they want to leave they can go...

However take my advice with a lot of salt... If you are lucky the World famous Glenn from Nelson will see the message and tell you the real truth... Well worth waiting for

[muppet]

Hi Guys

I can feel Chapter Six of Glenn's book coming in here.

Regards

[fudosan]

I can feel Chapter Six of Glenn's book coming in here.

Slow down, I have not even gone past chapter 1...Just a joke! Really, Glen's real-time reporting of his rental adventure makes a good book.

[oc]

Hi Bigpoppa

Fixed tenancy contracts run for the period of the contract. Once they terminate the agreement is finished and the owner gains posession. You are therefore free to do what you wish. If the tenant wishes to remain a new tenancy (fixed or periodical) can be agreed to. The current agreement has no direct influence on the new one.

regards OC

[Shar]

Hi Bigpoppa

Certainly in NSW you can give the notice before the term is up and then the rent increase takes affect from the day after the fixed term finished.

I guess it is the same in NZ.

Of course if they don't like the increase, they can then give notice to vacate on the day the fixed term finishes.

Shar

[pixie]

OC has the correct answer. The fixed term tenancy expires and a new contract must be drawn up to replace it.

They are meant to pack their bags and leave at the end of the year or come to you and ask to roll the contract over - ahead of time.

If you don't draw up a new contract then the tenancy will likely be treated as if you have tacitly agreed to a periodic tenancy so it is important to put in writing, ahead of time what the situation is.
a) they are leaving on due date or
b) they are staying and a new contract at $xx rent is agreed.
c) Smarter still - take them the new contract for their signature.

If you do nothing then it will roll to a periodic tenancy. Be proactive and the 60 day notice doesn't apply.