Our Rent Was Increased $30 When We Added Another Housemate?

• 

  donga100 on 20/12/2014 - 17:14

  +1

  Ask to take three people off the lease and get yourself a bargain rental for $90 a week less.

• 

  mapleice on 20/12/2014 - 17:30

  +3

  Contact the RTA, that is not only illegal, it is immoral.

  If you have signed the lease @$530, the real estate has no right, by law, to increase the amount agreed upon.

  If you have in fact signed a lease @$560, you are in a position you have signed an agreement that places you in a position of a "he said/she said" argument.

  By law, you agree to pay whatever is on the lease, unless there are circumstances stated in the lease relating to extra occupants.

  Contact the RTA in either case, as they have more knowledge.

  • 

    Settero on 20/12/2014 - 22:06

    +1

    this is not correct.
    they added to the contract, amending it.
    if the 4th person had moved in without being added to the lease , then you would be correct.

    • 

      jackary on 21/12/2014 - 20:06

      Not sure why you were negged, you're right!

• 

  p1 ama on 20/12/2014 - 17:39

  +1

  I'm not going to jump to conclusions here, but was a lease signed and what were the terms on the lease? That's what matters, there's no moral or legal argument otherwise. You pay what is on the lease.

• 

  breaks on 20/12/2014 - 18:01

  +2

  It depends on a number of things:
  - what does your previous contract say about adding an additional tenant?
  - is the landlord covering gas, water or any other utility?
  - what state are you in? - tenancy laws differ depending on state.

• 

  jonathonsunshine on 20/12/2014 - 20:11

  +1

  This happened a year ago. We signed the new lease.i think the alternative say they wouldn't have let the guy move in.

  • 

    jonathonsunshine on 20/12/2014 - 22:20

    +1

    In Queensland.

  • 

    AG_ACT on 20/12/2014 - 22:20

    +1

    From a landlord's perspective, I think that in deciding whether the increase is fair, you should probably consider:

    How long ago was the lease signed?
    Who pays the water usage charges?
    Landlord's insurance premium can sometimes go up depending on number of occupants, e.g. whether they declare the building as 3 bedroom + study if rent out to 3 people or 4 bedroom if rented to 4
    Did you tell the real estate agent that you were a group; if so, there are always additional charges for the additional wear and tear on the house.

    Not suggesting that your increase is fair (or not for that matter), just that you probably want to think about why the rent may have increased.

  • 

    p1 ama on 20/12/2014 - 22:43

    Was it specific on the lease that only 3 people were allowed? If so, by adding another person, you have to sign a new lease. I know of places which do this because they also provide certain maintenance and utilities which would obviously be higher with another person.

• 

  Cheeper on 21/12/2014 - 01:16

  Common practice. No recourse possible.

  You signed your original lease for 3 people to live in the property you rented. That is irrespective of how many bedrooms the place has.

  Moving in extra people as permanent residents always requires a new lease. The LL/agent can determine a new rate if so desired.

• 

  StuffnStuff on 21/12/2014 - 12:27

  You signed the lease for 3 people so no legal standing I'm guessing. You would have been better off being up front with the landlord and saying you were planning on 4 people, that way you could negotiated upfront. Now the landlord has you locked in, he can be less negotiable as they know full well that if you move out you will need to pay finders fees / and or cover the rent until a new tenant is found, plus the cost involved with moving again. On the Brightside it's only an extra $7.50 per person. That's probably the cost of a beer in some pubs these days.

• 

  aripper on 21/12/2014 - 14:00

  +1

  It's 25 years since I was in real estate but it was always up to the landlord to accept how many people lived in his house because of wear and tear and extra demand on facilities. Even today you can see examples on the telly on restrictions state owned housing place on undeclared tenants and visitors staying. It's for a good reason.

  Many rented houses today are valued at little less than half a million dollars and more in some cases. The owner has liabilities that even very careful tenants cannot offset…. and often don't take into account or even realise are payable by the landlord.
  Besides the maintenance required to clean gutters, clear drains and other that is not covered by insurance, there is the insurance itself - which for a rented house could range up to $1500 pa, painting every 10 odd years of $6000 to $11000, fencing replacement every 25yrs of approx $8000, new carpeting every 12yrs approx. $6000 and various other repairs as required on an ongoing basis. On top of that there is the council rates which could be up to $2000 and water and sewerage of another $1500 if not called for in the lease to be paid by the tenant.
  An average of $8000 per year or $160 per week that the tenant does not have to pay. The landlord also has to pay tax on any profit he may make.

  Add to that maybe, the owner could have a mortgage of 300,000 to pay and the interest could be (say today) 4% (no principal included), that's another $12,000 just in annual interest it costs him to provide this rental house and whether he or the tenant paying, this fee would still be a cost of either to inhabit the house.

  Run it out and it is over $400 per week outgoing for the average landlord in cost or value. At $530 per week the landlord is probably paying the agent a fee of approx. $30 per week to manage the property and collect the rent.

  I ask you, would you risk $500,000 for a return of $100 per week and attend to all the hassle and worries involved? I know the owner will probably own the house in 30 odd years - but that's near a lifetime away to the average person and the point is that he has still had to find the extra money for the principal which has to be paid along with the interest.

  Your landlord may have invested $200,000 deposit to get the $300,000 loan to start this cycle and maybe he is up for a hundred or two more than the weekly rent he receives if he has just become an investor in housing rentals. Why does he do it then? The same reason we pay super for our retirement, he thinks ahead and is prepared to sacrifice a little now for later… and incidentally, is no burden on society later.

  Those who put super away for retirement leave others to manage it and their's little risk of losing their money that way. They are lauded.
  The landlord is doing the same only he takes a huge risk and manages it himself… and along the way he provides a roof over the head of those who can't afford a house at the time. Seems most renters hate landlords.

  Strange old world, where those who are unaware still have a strong opinion.
  (Quickly compiled…E&OE)

• 

  DARK KHAOS on 21/12/2014 - 22:47

  The tenant must have 2 months notice of any rent increase and only outside of current lease and before a new lease is started.

  Rent cannot be increased during a fixed term agreement unless it is specifically stated.
  Even if rent increases are allowed during the agreement, 2 months notice in writing must be given or 4 weeks in rooming accommodation agreements.
  Rent can be increased in a periodic agreement by giving 2 months notice in writing (4 weeks in rooming accommodation).
  For rent to be increased, it must be at least 6 months since the last increase.
  Rent can be increased at the end of a fixed term agreement. For example, at the end of a 12 month agreement the rent can be increased for the next 12 month period.
  A tenant/resident can dispute the increase if they feel it is excessive by discussing the issue with the property manager/owner. If the tenant/resident still feels the increase is excessive, they can apply for dispute resolution once the new agreement is signed.
  If rent is increased, the bond may be increased if there has been at least 11 months since the last bond increase or start of the tenancy. Any additional bond must be lodged with the RTA using a Bond lodgement (Form 2). The tenant must pay the increase in bond by the date stated on the notice which must be at least 1 month after the tenant received the notice.
  

  • 

    aripper on 22/12/2014 - 11:33

    Something to note…. but the rules differed from state to state in my time and probably still do. Inflation was just under 3% so I can understand the $15 rental increase, but I've never heard of an extra person fee being dropped before. Maybe for good tenants?

    • 

      DARK KHAOS on 22/12/2014 - 12:32

      Good point but he has already indicated he is in qld and I have quoted from rta.