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First things first. OK, I agree that you should treat it as a Business BUT you have to take responsibility for your actions. You agreed to the rent, you signed a 12 month contract and now you have to wear the consequences of your actions. $400pw FOR TWELVE MONTHS!! You COULD have signed a...

You will just have to suck it up that you get $400pw for the 12 months. A couple of months before it's due, you can put in a rent rise, and you can increase it every six months BUT you can only do this if they are on a six month lease OR you have an increase input into your 12 month lease...