Rent increase based on improvements

[Neo]

My husband and I added on a bedroom and large walk n robe to our existing rental ( which was a large 1 bedroom). We added extra space and did not reduce existing.
Rent increase was discussed months ago along with builders hours etc with the tenant.
We also added new carpet throughout the unit.

We texted on Jan 9th to advise the rent will go from $300 - $350 once she occupies the new room. We attached a rental appraisal to confirm details ( we are still $30 under rent appraisal).
She moved in ( we helped move furniture etc) and I texted to say, welcome to your new addition... please increase your next fortnightly payment from $300 to $350.

A fortnight later I checked our bank statement and no increase 😕 . We have been very decent landlords ( as we live next door).
She has now said not enough notice was given....ironically - she is still happy using the room.
I looked up ( as I had previously to check we did everything correctly).
Home improvements do not come under the usual 180 day notice rent increase period.
I feel gutted 😩 I want to pass this rental over to a property manager so they can deal with her.
Hubby wants to leave things as they are as we have our house on the market and he doesn’t want to make waves. She has already said no to two viewings ( we did give notice).
This is a unit that is easily rented ( country and huge).
We would appreciate your thoughts.

[artemis]

You can go to the Tenancy Tribunal and you might win but it would be more trouble than it's worth IMO. The guidelines around this situaton look rather vague. Sounds like the tenant could argue she did not agree, which is not in itself a showtopper in the circs but makes it trickier.

Or you can issue the correct 60 day notice, in proper form, and set the rent at the rental appraisal level, assuming the increase will not take place within 180 days of the tenancy start or last increase.

Or you can issue a 90 day notice to terminate, no reason given, assuming it is periodic.

Is the tenant agreeing to some viewings? Or none? She has to be reasonable.

[hawkeye]

So you did all this building work with her in it now you want to sell it so she might not get to stay? Mmmm. That might be why she is upset.
LAJ

[Wayne]

So you did all this building work with her in it now you want to sell it so she might not get to stay? Mmmm. That might be why she is upset.
LAJ

That's what I'm wondering with the "said no to 2 viewings" comment.

[mrsaneperson]

OK what we have here is it not so much a rent increase but a Tenancy Variation Agreement. In this case and both parties must agree in writing, the rent increase can take effect immediately as their is now a variation in your original tenancy agreement .In essence you added an extra bedroom and the tenant was fine with paying the extra rent for this .A written agreement to that effect would have curtailed the tenants abuse of process.

I had a situation where my tenancy agreement stipulated no pets . I found out that tenant had brought 2 very large dogs into the property . I had 2 choices either to issue a 14 day notice to get rid of the dogs or enter a Tenancy Variation agreement . I entered into a Tenancy Variation agreement which allowed the tenant to keep the dogs conditional upon them not entering the house and extra rent payable effective immediately.
Tenant was happy with this.

I knew if I had refused her permission to keep the dogs she would have just played silly games with me hiding them off the property if i came by for an inspection.

[Learning]

I entered into a Tenancy Variation agreement which allowed the tenant to keep the dogs conditional upon them not entering the house and extra rent payable effective immediately.

Are variation agreements exempt from or allowed in the RTA? Ie. No 60 day notice?

It seems it bypasses the protections of the RTA. If the tenant were to turn feral at the end of the tenancy couldn’t she claim all that extra rent was illegal and she felt pressured to agree or become homeless?

[mrsaneperson]

Are variation agreements exempt from or allowed in the RTA? Ie. No 60 day notice?

It seems it bypasses the protections of the RTA. If the tenant were to turn feral at the end of the tenancy couldn’t she claim all that extra rent was illegal and she felt pressured to agree or become homeless?

The 60 day notice does not apply as it pertains to a variation of the existing agreement for betterment. The protections of the RTA are not being circumvented since these are additional benefits provided to the tenant . Both parties must agree.

Pressured to become homeless? Pulllleaseee... . Tenant signed the original TA fully aware that a no pets policy was in place. TBH i would rather not have the dogs but this was a considered solution.
Their was also an additional betterment added to the variation agreement which allowed the maximum number of occupants to be increased from 6 to 8.

[Perry]

Are variation agreements exempt from or allowed in the RTA? Ie. No 60 day notice? It seems it bypasses the protections of the RTA.

See RTA section 28.

[Learning]

See RTA section 28.

Cheers Perry.

[FJW]

It is standard practice and within the legislation that you need to give a tenant 60 days notice to increase the rent, should there be nil provision in the lease of when the rent will be reviewed then it can't be less than 180 days after the commencement......however you may sell it before the rent is due to be increased anyway?

Me personally if a house was on the market I wouldn't put tenants on notice of a rent increase as they would have enough disruption with the house being marketed......