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Notice of Rent Increase

J

jgrover

0
REIN Member
Joined
Feb 23, 2008
Messages
14
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
 
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?
 
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.
 
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,
 
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.
 
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?
 
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.
 
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
 
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