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Thread: Rent increase

  1. #1

    Default Rent increase

    Hi all,

    (newbie here, apologies if the question is silly or has been posted before)

    Is it common for the property manager to increase rent without consultation?
    I texted one of the property managers in March and he advised that he would let me know once his inspector gets back to him, then no word... I assume he's left.
    So I contacted the other property manager in July and she advised that they had increased rent by 5% in May, due to kick in in July.
    Which was a bit of a surprise, as there was no consultation whatsoever.

    Is this common, or are they taking liberties?

    Also, the water situation.
    Should the landlord (not me unfortunately, I'm just acting on behalf) pay for the water bill (deducted out of the rent) in month 1, and have it refunded by the tenant in month 2? (this is the fixed portion) How do you handle yours?

    Cheers
    Last edited by cecile; 13-07-2015 at 05:37 PM.

  2. #2
    Join Date
    Aug 2009
    Location
    Auckland
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    Default

    Hi Cecile,

    Regarding the water question - Landlords are responsible for paying for the fixed water charges. The Landlord can choose to pay for the volumetric water charges or they could pass this over to the tenants.

    Regarding the property manager increasing rent without consultation - I would not have expected this to happen and keen to hear if this is the norm or not as I property manage all my investments.

  3. #3
    Join Date
    May 2004
    Posts
    2,829

    Default

    If you pay the bucks to the PM you should expect them to get you the best return they can. That's their job. I suppose if an owner has specifically asked to be consulted then that should happen.

    I would be more concerned if the PM did not regularly review rent against market rates.

  4. #4
    Join Date
    May 2008
    Posts
    3,619

    Default

    You're upset the PM increased the rent?
    <there's something wrong with your point of view>

  5. #5

    Default

    Hehe maybe I was after a 10% increase... tbh I'm not sure. The person I'm acting on behalf of is based overseas and does not increase her rents that often. My issue is really the lack of dialogue, they didn't ask what I wanted to do.

    Re. Water, paying for the fixed charges is ok, but is it normal that we pay both fixed and variable, and tenants refund the variable portion the following month? (Whoops I didn't properly formulate my question).

  6. #6
    Join Date
    Nov 2006
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    Default

    What's in the PM authority regarding rents?

  7. #7
    Join Date
    Aug 2009
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    Auckland
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    Default

    Quote Originally Posted by cecile View Post
    Re. Water, paying for the fixed charges is ok, but is it normal that we pay both fixed and variable, and tenants refund the variable portion the following month? (Whoops I didn't properly formulate my question).
    Yes, that is absolutely normal. I would never trust my tenants to pay for the variable water components directly to watercare anyway. I would always pay the full water charge myself and ask the tenants to pay me the variable water component to my company's bank account usually a week after due date (I try to give them at least a full 3 weeks to pay).

  8. #8

    Default

    The agreement days that they have to "Review the rent regularly"... No further details.

    So when the tenant refunds you the volumetric portion, does it mean that you pay their GST on it? Or that you pro rata and include it? Suppose it's not that much unless you have a swimming pool or they're bath lovers.

  9. #9
    Join Date
    Aug 2009
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    Auckland
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    Cecile - if the property is based in Auckland and you get a watercare invoice then the volumetric charges already include GST so you would not need to add GST on top.

  10. #10
    Join Date
    Jun 2004
    Posts
    10,426

    Default

    Quote Originally Posted by cecile View Post
    Also, the water situation.
    Should the landlord (not me unfortunately, I'm just acting on behalf) pay for the water bill (deducted out of the rent) in month 1, and have it refunded by the tenant in month 2? (this is the fixed portion) How do you handle yours?
    I pay the bill when it is due (automatic payment so I don't forget).
    I pass the bill to the PM when I get it and they get the tenant to pay their share.
    So yes I pay one month then get the money back later.


 

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