Hi all,
Any suggestions how you would respond to this would be appreciated :-) :
Recently I sent the tenants of one of my Auckland houses a rent increase letter advising the rent would increase in 60 days time to the market rent (Dept Building website market rents) level for a 'above average ' house in this specific Auckland suburb. The increase is $30pw and does not begin for 60 days (by which time median rents in the area will have most likely inched up more) . Their TA states that a rent increase is allowed after 180 days - so its legal.
These tenants have been in the house for 5 months - on a 1 year fixed term TA.
The house was rented to them below the market rent at the time.
The tenants (4 adults- all with full time jobs, 1 teenager ) have responded that they cannot afford the increase ... and will need to leave and find another house.
Am I correct, in thinking that:
( a.) if they move out they have to continue paying their rent until I find new tenants - as their fixed term is 1 year.
(b. ) if they choose to stay then after the legal rent increase notice period is up they pay the increase.
A week ago, I had the property full insulated at their request and of course,- to meet the new standards - it cost $2.8k, - met a few of their other minor but unnecessary property requests too initially.
How would you more experienced property investors - deal with this situation?
Cheers - V
Any suggestions how you would respond to this would be appreciated :-) :
Recently I sent the tenants of one of my Auckland houses a rent increase letter advising the rent would increase in 60 days time to the market rent (Dept Building website market rents) level for a 'above average ' house in this specific Auckland suburb. The increase is $30pw and does not begin for 60 days (by which time median rents in the area will have most likely inched up more) . Their TA states that a rent increase is allowed after 180 days - so its legal.
These tenants have been in the house for 5 months - on a 1 year fixed term TA.
The house was rented to them below the market rent at the time.
The tenants (4 adults- all with full time jobs, 1 teenager ) have responded that they cannot afford the increase ... and will need to leave and find another house.
Am I correct, in thinking that:
( a.) if they move out they have to continue paying their rent until I find new tenants - as their fixed term is 1 year.
(b. ) if they choose to stay then after the legal rent increase notice period is up they pay the increase.
A week ago, I had the property full insulated at their request and of course,- to meet the new standards - it cost $2.8k, - met a few of their other minor but unnecessary property requests too initially.
How would you more experienced property investors - deal with this situation?
Cheers - V
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