Help - Landlord Wants to Increase The Rent

Lseriousquokka on 02/03/2017 - 15:30
Last edited 03/03/2017 - 17:24

Hi guy,

I find myself in a dilemma right now and I am looking for help, any opinion is appreciated.

Long story short. My current 6 month lease ends tomorrow. I have informed the agent verbally and by e-mail two weeks ago that I would like to sign a new 6 month lease. They simply told me 'ok, no problem', and they would prepare the paper work and let me know when it is ready to be signed. However, there was nothing coming next.

Yesterday I was starting to worry as I have planned to be away for the next two weeks. So, I asked the agent if we can get this new agreement done by the end of this week. Then they suddenly told me that owners of this property wants 12 month new lease with slightly lower rent, otherwise they would increase the rent slightly (don’t know how much yet) for a new 6 month lease. I felt I was tricked and they left me no option since there is no time for me to consider finding another place, and I'm not able to deal with this in next two weeks.

I want to know what you guys think. Is this agent's fault or it is normal for owners to raise the rent of next lease without notice, especially at the last moment?

Thanks in advance.

PS. I'm living in Brisbane.

———— Update ————
Yesterday our agent first came back to me with only $5 per week increase (~$130 in total), claiming it's what owners want.

As you guys suggested, I refused the offer and asked for the same rate. Basically I told them it's their fault not mentioning it earlier, changing it suddenly is not acceptable. And I asked them to tell owners to reconsider.

This morning, agent replied me saying that the owners had changed their mind and agreed with the same rate.

I have this feeling that all these changing back and forth might only be something totally made up by the agents, trying to pressure me. Owners probably didn't get involved at all in the first place. Or they just really dropped the ball. Anyway, that might not be a huge amount of money but I am happy standing on my ground. Thanks for helping, guys.

Financial

Comments

  • holdenmg on 02/03/2017 - 15:38
    +6

    Offer to renew at the current rate for 6 months and see what they come back with…

    • seriousquokka on 02/03/2017 - 23:00
      +1

      Did that, still waiting for reply. I'll update tomorrow.

  • Colombian on 02/03/2017 - 15:47
    +9

    I understand that Landlords should notify of a rent increase at least 60 days after the expiration of the agreement unless the increase is agreed periodically in the tenancy agreement. Am I right?

    • Cusack on 02/03/2017 - 16:23
      +1

      Agree. That agent dropped the ball on this one.

  • universe on 02/03/2017 - 15:49
    +2

    Is there a reason why you cant sign a 12 month lease for less rent?

    Owners are allowed to renegotiate rent when your contract ends and i think they would prefer to have a tenant long term for financial security(hence the lower rent).

    I reckon the realestate agents should have contacted you beforehand to see if you were interested in extending the lease. I would have contacted them earlier as a tenant though. Saying this i believe they are within their rights to increase the rent as you are out of lease tomorrow, and they cant give 60 days notice to someone not on a lease.

    • seriousquokka on 02/03/2017 - 23:10
      +1

      My partner and I need the flexibility. Our current jobs are not for long term.

      • furys12 on 03/03/2017 - 09:00
        +3

        you should go to the agent and offer to sign a 12 month less with a clause allowing you too end the lease early for work only, you get cheaper rent, landlord gets the long term contract and you get the ability to leave if you have to for work.

        source: just did this

        • universe on 03/03/2017 - 09:16

          i agree with this. i have a 2 week release clause

  • try2bhelpful on 02/03/2017 - 16:44
    +1

    Give the Tenant's Union guys a ring; or the equivalent in your state.

    https://www.tuv.org.au/

    It is probably best to ask if the rents are going to increase when your old lease terminates as that is the logical time for a rent increase to be applied.

  • mbck on 02/03/2017 - 17:48

    Could OP continue to update this thread with more info? Would love to find out what happens. Thanks!

    • mbck on 04/03/2017 - 09:12

      Thanks for updating op!

  • spackbace on 02/03/2017 - 18:00
    +13

    My current 6 month lease ends tomorrow.

    After that you will automatically go to a periodical lease… IE they can't just kick you out after tomorrow, especially as lease renewal has taken so long… Don't worry, you're protected.

    https://www.rta.qld.gov.au/Resources/Fact-sheets/General-ten…

    Deciding how the tenancy will continue

    When a fixed term tenancy ends and the parties agree that the tenant can remain in the rental premises, the lessor/agent and tenant need to decide on the future tenancy arrangements.

    There are three ways a fixed term tenancy can continue:

    • extend the existing fixed term agreement by agreeing on a new finishing date, or
    • enter into a new fixed term agreement, or
    • do nothing and allowing the agreement to revert to a periodic agreement.

    If you do not extend or sign a new fixed term agreement, a periodic agreement automatically comes into place. The periodic agreement continues under the same terms that applied to the fixed term agreement except for the end date.

    At any time, the tenant and lessor/agent can agree to end the periodic agreement and begin a new fixed term agreement. For more information, see the fact sheets General tenancy agreements or Moveable dwelling tenancy agreements.

    Under a periodic agreement, rent may be increased by the lessor/agent giving the tenant two months notice in writing of the increase. However, rent can not be increased unless there has been at least six months since the current amount of rent became payable by the tenant.

    • spackbace on 02/03/2017 - 18:05
      +6

      So:
      Yes, they can increase the rent on a new agreement (sorry!)
      You will automatically go to a periodical lease after tomorrow if no lease has been signed

      • blonky on 02/03/2017 - 18:11
        +6

        Also, once it becomes a periodic lease, they can increase the rent provided they give 60 days notice, or terminate the lease with 90 days notice

      • macrocephalic on 02/03/2017 - 18:39

        Only after giving two months notice - in writing.

        If the owner and agent have been this useless then there's nothing they can do now - they're stuck with the tenant for the notice period (probably 4 weeks) at the current rent, or they can come to an agreement to sign a new fixed term lease.

        • spackbace on 02/03/2017 - 18:54

          Only after giving two months notice - in writing.

          Nope, provided both agree:

          At any time, the tenant and lessor/agent can agree to end the periodic agreement and begin a new fixed term agreement.

        • macrocephalic on 03/03/2017 - 10:46
          +1

          @Spackbace: Yes, if they both agree then they can sign a new lease with a rent increase. If they don't agree, then they have to provide a notice period. Either way, the tenant doesn't have to worry right now.

    • seriousquokka on 02/03/2017 - 23:19
      +1

      Many thanks to you mate.

  • [Deactivated] on 02/03/2017 - 22:22

    You can still break lease earlier than 12 months. I would have accepted 12 months. I did the same when I was moving to Melbourne. I needed something short term and everyone wanted 12 months lease. Speak to your agent and he will explain how to break lease if you need to move again. The contract doesnt hold you to paying 12 months lease if you break lease earlier.

    • seriousquokka on 02/03/2017 - 23:16

      My experience is, if I break lease earlier they will ask me to find someone else as substitute. That's too much effort.

      • [Deactivated] on 03/03/2017 - 00:05

        They won't. Speak to your agent and read your new contract. You just need to give right amount of notice.

        • seriousquokka on 03/03/2017 - 00:38

          Good to know, I'll keep this in mind.

    • furys12 on 03/03/2017 - 09:06
      +1

      this should come with a massive note to say read your contract carefully first!, every single rental contract i've had the displeasure of signing has said that upon breaking the lease you (as the tenant) are on the hook for the rent until a replacement is found, for the remaining period of your contract, you don't have to find the replacement sure but if you can you should, this clause seems to be pretty normal from everyone ive spoken too.

      if you can give notice early enough and have a couple extra weeks worth of rent just incase you should be fine but you should be aware of exactly what you will be responsible for in case for some reason the tenancy isn't filled

      • [Deactivated] on 03/03/2017 - 10:56

        You can notify of break lease and live there until new tenant found. Move out the day before they scheduled to move in.

      • [Deactivated] on 03/03/2017 - 17:49

        Strange. Before i bought my place I rented in Sydney and Melbourne and never had that issue. I agree. Read the contract. The contract will provide all information

  • modsec802 on 02/03/2017 - 23:04
    +2

    I wouldn't be accepting any rent increase in Brisbane. Rents are falling.

    • seriousquokka on 02/03/2017 - 23:13

      Didn't know that, can you share any source?

      • modsec802 on 03/03/2017 - 08:21
        +1

        Personal experience. Look at realestate.com.au comparing current rent. See how many places are cheaper and how many places are vacant and offering x weeks rent free. Good sign rents are falling.

        • [Deactivated] on 03/03/2017 - 10:59
          +2

          Same here, in fact everyone I know living in apartments around CBD had their rent reduced by $30-50 in last 6-12 months. Sometimes property manager offered it, sometimes tenants asked for it, vacancy rate for apartments in CBD and in 5km radius is abysmal.

  • goodcopbadcop on 03/03/2017 - 10:50
    +1

    The agent should have been on to this well before your lease ended. Having been a landlord myself I would be giving the flick to the agent for not doing the job that they are paid for (that is paid as a % of the rent). To leave it to the last minute with no communication at the very least is bad enough but to not have a new contract in place going forward is a sign of a very slack agent. For this reason, I would not sign a new lease unless they do the follow up work and the price and length of time is how you like it. A good tennant is not worth increasing the rent over - no matter how slight. A vacant property with no rent coming in for a month is going to undo any increases in rent that might have been imposed. Your current lease will go periodical and you have rights and plenty of notice of any change. I'd say you have done your best to get this sorted by hussling the agent. They obviously couldn't care less, and will only get into action when the owner contacts them and starts asking questions.

  • [Deactivated] on 03/03/2017 - 11:01

    already said before me

  • mishrael on 04/03/2017 - 07:23
    +2

    Ten bucks says it's all the Agent, half the time they don't even ask the owner before doing things like this.

  • Blue Cat on 05/11/2017 - 10:21

    I am in a similar situation, however, they gave me a call when I was doing some stressful work and I verbally agreed to the increased rent just so I can get back to work.

    Do you think I can still get away with them saying that they haven't given me a 60 days rent increase notice so therefore I will not sign the new increased rent contract?

Login or Join to leave a comment
Login Join