Raising Rents in AB

[markl]

Hi all I am currently in the process of buying some properties in AB we have a tenant who would like to sign a 3 year lease as that is how long they are contracted for. My question is once per year are we still able to raise the rents or are we better to sign a 1 year and renegotiate every year?

Thank you for your input

Regards,

 

[JRL]

3 years, wow! Congratulations! Sounds like a pretty stable cash flow to me.

Can you not just incorporate an escalating rate clause in your tenancy agreement? Example, if his term starts on July 1st, 2008, and ends on July 1st, 2011, you could do the following:

*HYPOTHETICAL DOLLAR VALUES*

Year 1: $1,500/month
Year 2: $1,545/month
Year 3: $1,591/month

These numbers are based on a 3% increase per year, which you could explain to the tenant is due to inflation. Perfectly reasonable.

 

[dwb]

QUOTE (markl @ May 15 2008, 10:19 AM) Hi all I am currently in the process of buying some properties in AB we have a tenant who would like to sign a 3 year lease as that is how long they are contracted for. My question is once per year are we still able to raise the rents or are we better to sign a 1 year and renegotiate every year?

Thank you for your input

Regards,

In Ontario, I know for sure that you can still raise rents after each annual year regardless of the duration of the lease. I don`t know about AB though....