New rental rules and fixed term tenancy question

[Bob Kane]

And I will be discussing, with the sitting tenant, the price variation policy our firm has on rent for fixed term contracts and periodic contracts.

Would your policy be something like:
Fixed term: rent = current market rate
Periodic term: rent = current market rate + $100
?
Those who want to stay for life can pay a bit more for that certainty.
This seems reasonable to me.
And you simply increase the surcharge if you want to remove the tenant.

[flyernzl]

Be aware that any tenant can apply to the Tribunal for a rent fairness assessment if they think that the proposed rent is markedly above current market and the TT could well Order a reduction.

[Bob Kane]

I'm hoping that Keys has an answer to that point.

[PC]

What a nightmare.
Stupid interference and over regulation of what should be a simple free market transaction.
Better put the rents up some more for all the hassle.

[Keys]

Be aware that any tenant can apply to the Tribunal for a rent fairness assessment if they think that the proposed rent is markedly above current market and the TT could well Order a reduction.

Market rent, an interesting subject now.

Like must be compared for like.

No longer can you just source the advertised rental rate for a property and compare it's return to establish the market rent.

For comparisons in market rent. Now, you must establish if the (compared) tenancy wanted a periodic contract, if the tenant had suspect credit history (premium on rent charged due to added risk factor), if the tenant had criminal history (increase in insurance premiums if allowed to reside there), how many residents in the compared tenancy. The criteria for market rent comparisons has just got more complicated.

At the moment we we charging 15% more for periodic on renewal when tenants want to have periodic after a fixed term. Our first renewal on this basis has been successful.

Look at S 78 (1g). We will be getting legal advice on the ability to have a clause in our contract stating that any criminal convictions not disclosed will result in termination pursuant to 78 (1g) We will offer the tenancy on the condition that a conviction check is conducted. The tenancy can continue if the applicant was honest with their application.

Unintended consequences?

[artemis]

Keys, what has changed in determining market rent? Are there Tenancy Tribunal decisions supporting a tightening of criteria? These in any case are not precedents.

In my spasmodic reading of TT market rent decisions adjudicators do make some attempt to compare rent evidence presented for like to like rentals. Tenants don't often win their case for a reduction.

[Keys]

Keys, what has changed in determining market rent?

The convenience for the tenant to choose periodic tenancies as of right after a fixed term ends (IE no 90 day notification and no termination for tenancies without court rulings). This, and this alone, has been the straw which has motivated me to look at the issue.