Notice of Rent Increase

[jgrover]

Has anyone used the move-in lease as notice of rent increase at each 1-year anniversary? (i.e. Rent will be increased by 4% one year from your move-in date and every 12 months thereafter). Would this turn off potential renters or is it a good idea so expectations are established right up front?

Many thanks!

Jen in Vancouver

 

[SamEfford]

I have not used this as it is hard to predict the future. What if the rents go up 8 or 10 or 20% in the area? What if they go down?

 

[tadams]

How about simply stating that `adjustments to rent will occur...` that way you are free to increase or decrease by X%. I`m not sure what the laws are like in Vancouver (yearly increases only?) but you may also want to include a clause stating that you are free to make adjustments if necessary throughout the year in addition to the regular annual adjustment.

 

[GarthChapman]

It is always great to see people thinking outside the box!

In this case I don`t see any benefit to the landlord, but it could pen you in to something you may not want to do later on. I would let the lease speak for itself for its duration, and deal with any possible increases at the appropriate time.

Hope that helps a bit,

 

[ChrisDavies]

QUOTE (tadams @ Mar 12 2008, 02:31 PM) How about simply stating that `adjustments to rent will occur...` that way you are free to increase or decrease by X%. I`m not sure what the laws are like in Vancouver (yearly increases only?) but you may also want to include a clause stating that you are free to make adjustments if necessary throughout the year in addition to the regular annual adjustment.

Based on my experience in Alberta`s Dispute Resolution Service, that`d get thrown out in about 30 seconds.

 

[tadams]

QUOTE (ChrisDavies @ Mar 12 2008, 08:29 PM) Based on my experience in Alberta`s Dispute Resolution Service, that`d get thrown out in about 30 seconds.


QUOTE (EricPeters @ Mar 12 2008, 09:12 PM) Not a hope in #$@xx that this would fly. I don`t think any jurisdiction would allow it.


I`m not surpised but how/why does that really differ from the original poster`s idea? Is the difference in that the specific date and increase amount are stated?

 

[ChrisDavies]

One more common strategy is to `officially` set the rent above the actual rent, and offer incentives for the first six months (or some variation thereof).

To go back to the initial poster`s question: no, people don`t use the lease as a one year notice of rental increase. You just put this in your calendar: 8 months from the commencement of the lease to start examining the market, for the 9th month, issue the increase, and at one year, give them a birthday present and start collecting the increase.

 

[jgrover]

Thanks for your perspectives. It idea to set expecations out front was suggested to me, and an interesting one to consider, but I think one might be wise to gauge the situation as the time comes. (We can only increase 4% a year here annually regardless). I am intrigued by incentives but have never tried them. Will keep in mind. Thanks again.

Jen in Vancouver