10% Rent Increase

Hi

One of our tenants moves out today after renting the home for the last 4 years.

The PM has 4 prospective tenants inspecting it on Wednesady in an "open house" environment and has advertised the property with a 10% rent increase from the old tenants.

Another $100 pcm income. Beautiful!!

Have fun

Dale
 
Hi Dale

Yes, sometimes 'holding the rent' brings a nice surprise when the property is next available

Our 'exec house' was let on a two year lease commencing at $300pw, after two years we wanted a $15 per week increase which was vehemently opposed and we agreed on $305 per week, eighteen months later when they moved out, it was let within three days for $370 per week. That was three years ago and we haven't touched the rent since then - we have a good tenant and the market has juddered a bit and exec houses have taken a while to let and we have been happy to let things sit.

However, rent in our neck of the woods is patchy - we have had some houses scratch to achieve the outgoing rent and others which have achieved good increases. The last three years have been unreliable - very low vacancy rates but different tenant expectations - the actual rent return against capital value is fickle and I think there is still a few more 'after boom' years before we can more accurately predict the return for particular sections of the market.

Congratulations on your recent South Australia purchase and the likelihood of a stronger rent return for this vacancy. Every little bit helps!

Regards

Kristine
 
I have had the same people living in my IP for just over a year and a half now and left the rent at $200 a week, everyone tells me I should put it up. Way i see it if they move out I will put it up, if they continue to say there I am happy to leave it at $200 a week while they stay.

Have read stories in paper about properties in perth with the boom people asking $300 a week and loosing $900 because having no one in it for 3 weeks instead of dropping price to $280 a week.
 
Hi

Just a follow up. The tenant handed keys in last Monday with the house in great condition. The PM had an open for inspection on Wednesday night with 6 couples interested.

One couple offered $10 more than the PM advertised as the asking price!!! Their references are impeccable and the agent believes they will be great long term tenants.

Woohoo!!

Dale
 
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