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Dealing with rent increase in the middle of a contract.

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  1. #31

    Join Date
    May 2011
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    Quote Originally Posted by big_panda:
    Without the benefit of reading the entire lease, based on the extract it looks like a fixed term lease for 24 months. Rent can't be increased during that term unless there is a specific provision to do so. Just tell the landlord that, and if he wants to try to enforce a rent increase let him. As the lease isnt stamped, I'm sure he's also not reporting property tax to the IRD.
    I still haven’t had my rental agreement stamped. How much would it cost OP to do this - is it just stamp plus interest? I’m sure Landlord (like mine) wants to go nowhere near a stamped agreement so this may work in OPs favour. I have a suspicion there are thousands of unstamped tenancies here.

  2. #32

    Join Date
    Aug 2007
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    Any two year standard agreement would have a one year break clause which would entitle the landlord to alter the monthly rent after the one year period has elapsed, so what your landlord is proposing is not unusual. Either party can also submit notice to terminate the agreement once the one year is up. However, since your communication with the landlord show that the status of the current agreement is sub-standard, then I would advise taking legal advice to correct the current situation as an immediate priority.


  3. #33

    Join Date
    Sep 2021
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    Quote Originally Posted by walkup:
    Any two year standard agreement would have a one year break clause that would allow the landlord to alter the monthly rent after the one year period has elapsed, so what your landlord is proposing is not unusual. Either party can also submit notice to terminate the agreement once the one year is up. However, since your communication with the landlord show that the status of the current agreement is sub-standard, then I would advise taking legal advice to correct the current situation as an immediate priority.
    A standard agreement allows for either party to break the contract after one year, by simply giving one month written notice.
    However, if both parties wish to continue the contract on the second year, basically do nothing, the price is the same, unless it's explicitly written otherwise.
    In practice, landlord would give notice that he wants to terminate, unless tenant agrees to an increase. Then second year continues.
    However, the OP is saying that his contract is not standard, in that it's fixed for 24 months. Check it again to confirm that's the case.
    Unfortunately, the landlord never signed it.
    So, basically, how good of a deal is this to worth the trouble? Post the price and area here.

  4. #34

    Join Date
    Nov 2017
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    It is also the renter's responsibility to check with land registry the owner of the property is signing the contract.
    Normally if you go through an agent they will do this for you.
    Essentially you do not have a valid contract unless there was a Power of Attorney attached for another party to sign for the property.


  5. #35

    1)
    Invalid contract (if not signed by owner)
    Even if the OP gets it stamped now (late applications are allowed, you just pay more than the usual fee), the contract is still not signed by actual owner or the owner’s Power of Attorney (according to what the Landlord now claims).

    And having no valid signature probably cancels out having a break clause on the contract.

    2)
    Dodgy greedy landlord
    Always a good reason not to renew a contract.


    Find a new place to move to
    and as others advised, check the owner of your next potential rental property on the online land search (if you do not use an agent, you can check it yourself easily online, I think it’s only about $10), read the contract carefully and look out for things like a break clause (2 years, 1 year fixed, 1 year option is most common, or you can try negotiate a longer fixed period if you want to stay longer). Though you don’t like moving, with a better rental situation, you can be much happier.The landlord could probably want you to move out before you’ve stayed the 2 years for his own reason (wants to use for himself or for a friend or family member?) anyway, so he probably doesn’t expect you to agree to the 20% rent hike (unless you’re paying very low rent) but to move out instead.
    The only other caution I can think of is if you do move out before the 24 months, and you are actually obliged to pay the full 24 months rent (the landlord lied before and suddenly can provide a Power of Attorney for his relative who signed the contract so the contract is actually valid?).

    As others suggest, get legal advice from a lawyer first. And if possible, communicate with the Landlord in writing (text, WhatsApp, email), not phone calls, so you can use it as evidence.


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