Raising the rent on your Marlborough property is never an easy subject to broach with your tenants. But before you even enter discussions, you need to be sure you’re following the law in terms of any increases.
If Bayleys Marlborough Property Managers are looking after your rental, you can rest assured we have your back. Firstly, we have a thorough understanding of the Real Estate Law. We’re experts in the Residential Tenancy Act, so we know what’s legal. Secondly, our local market knowledge will ensure that your rent is set at the correct rate at the start of a tenancy.
When can you raise the rent in Marlborough?
The Tenancy Services website states:
Landlords can only increase rent:
- after the first 180 days of the tenancy
- provided the increase is not within 180 days of the last increase.
Landlords can only increase rent for fixed-term tenancies if the tenancy agreement allows this.
How does the process work?
Once you’ve determined whether you can legally increase rental charges, you must follow a strict process. You must give your tenant at least 60 days written notice of any increase. Your written notification should include details of how much the increase is and the day you will start charging the higher rate.
Reasons to raise the rent:
There are several reasons why you might consider increasing the rental rates on your Marlborough property. While this is usually best factored into a tenant changeover if you have long term tenants this isn’t always possible.
Here are two reasons you might consider raising the rent:
- Property Improvements – If you have upgraded your property with significant changes, rather than simple repairs, you can consider charging higher rents.
- The Local Rental Market – The ‘Market’ is the biggest factor that will determine any increases. If the vacancy rate is low, you can afford to charge more. At Bayleys Marlborough, we have our finger on the pulse and can advise you accordingly.
What if my tenants don’t agree?
If your tenant feels that the rent increase is too high, they can apply for a rent review with the Tenancy Tribunal. It’s always crucial that the reason for any rent increases are communicated clearly, and that’s why having a Property Manager can help. A tenant is never likely to be happy about paying more, but we are happy to act as your messenger, and we have the professional experience that allows us to act in your best interests.
Contact us today for property management services!