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Thread: Rent increase

  1. #1

    Default Rent increase

    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?

  2. #2
    Join Date
    Jan 2005
    Location
    Warkworth
    Posts
    530

    Default

    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.

  3. #3
    Join Date
    May 2004
    Location
    Manawatu
    Posts
    242

    Default

    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
    Counter cyclic means always swimming against the tide

    Manawatu Property Investors' Association

  4. #4
    Join Date
    Sep 2003
    Location
    High up above and deep down under
    Posts
    10,915

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    Hi Guys

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

    Regards
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  5. #5
    Join Date
    Jun 2004
    Location
    Auckland
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    2,103

    Default

    Quote Originally Posted by muppet
    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.

  6. #6
    Join Date
    Nov 2004
    Location
    Timaru South Canterbury
    Posts
    51

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    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



  7. #7

    Default

    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

  8. #8
    Join Date
    Oct 2004
    Location
    Wellington
    Posts
    165

    Default

    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.


 

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