A little update on one of the secrets we gave to you Landlords in the fall of 2016 by introducing you to the vacancy clause…
We spoke about using the vacancy clause to your benefit – as it enables you to reset rents on an annual basis which helps you acquire market rents pricing or to be able to end your tenancy with your tenant should they be an unpleasant tenant to deal with.
However, as of Nov 30, 2017, new legislation passed that voids all current tenancy agreements which include a vacate clause; tenancies that are currently part of the vacate clause will revert back to month to month rental at the end of the fixed term unless at the time of signing the agreement the landlord, their parents or children have move into the rental property themselves subsequently .
Put simply, with these new rules in place, landlords are no longer allowed to re-set rents to market rates using the vacancy clause at the end of the tenancy term.
With that being said, here are a few pointers on what we as Landlords can do about these changes:
Tip #1: Increase our due diligence and be more patient in choosing the right tenants to occupy our property since they may very likely stay with us for the long-term unless they voluntarily choose to leave otherwise we may have to move into the property ourselves…which is inconvenient and unlikely. So choose wisely – slow and steady wins the race!
Tip #2: We need to be diligent on increasing rental rates on an annual basis – and adjust accordingly to the allotted increase of 4% for 2018. Setting reminders on our calendars will definitely help keep us in check in giving our tenants friendly notifications of rental increases.
Tip #3: Last but not least, we need to be kept up-to-date at all times what the current rental market rates are so that we can set our rent prices as high as possible – in order to receive the fairest market value for our rental properties when we advertise our properties for vacancy!