Biggest rental hike?

[Richard Feynman]

I'm just wondering what's the most you or your property manager has increased rent on a property (in proportion to the total rent, NOT the largest dollar amount) in two scenarios:

1) The tenants accepted.
2) The tenants vacated (and if so, was this your plan)?

Feel free to be as elaborate or brief as you wish.

I'm interested in both residential and commercial, just mention which.

Nope, not a poll this time, I'm saving those up

 

[TMNT]

My one $270-$350 at the end of a 6 month lease, thats a $29% increase,

however at the end of the second lease, i struggled to rent it out at $250

 

[WattleIdo]

Great question, Richard Feynman.
Am ready to increase rent - think it would be possible to go from $350 pw to $400 but will probably just put it up $10 or $15 because it would be a pity to lose the tenant.
Wondering whether to make one massive hike or go up by $15 every six months.

 

[Corey Batt]

Great question, Richard Feynman.
Am ready to increase rent - think it would be possible to go from $350 pw to $400 but will probably just put it up $10 or $15 because it would be a pity to lose the tenant.
Wondering whether to make one massive hike or go up by $15 every six months.

Some tenants will get peeved at frequent increases at six month intervals.

Pull the bandaid off in one hit, especially if you're well under market.. Better of you having that 2.5k p.a than them.

 

[WattleIdo]

OK thanks - will give it a go.

 

[Richard Feynman]

Thanks for the replies. I'm glad this post was relevant to at least one person too.

TMNT, where was that property?

 

[Ideo]

I had one attempt at 430-520.

I found new accommodation after trying to negotiate with them. It sat vacant for 5 months and I watched the rent come slowly down till it was finally advertised at $450.

I would have stayed at $450.

 

[wylie]

I'm about to raise rent from $525 to $600 for five students. The cheapest five bedroom, two bathroom in the suburb is $700 but that is a different quality of house to the rather tired place they are in. Everything works, but it isn't terribly flash and needs a paint and to get $700 we would need to update the kitchen and bathrooms.

I wanted to put it up to $550 last renewal, and raise it gradually until we are getting closer to the market rent, but my brother got in before me and put it up from $500 to $525, which is too low.

If they leave, we will get $600 from someone else, possibly a little more. These students are paying $105 each for a room (three rooms are fairly small) and when it goes to $600 they will still only be paying $120 per room which is still a very good deal.

I'd like to put it up to $650 but don't want them to leave really or we will have to do a bit of a clean up, which I'm too busy for just now.

 

[BuildingBlocks]

Where is Dazz for a reply?

I have been reading some of his old threads this week, where rents were doubled and quadrupled at the end of a lease!

 

[Richard Feynman]

I'm about to raise rent from $525 to $600 for five students. The cheapest five bedroom, two bathroom in the suburb is $700 but that is a different quality of house to the rather tired place they are in. Everything works, but it isn't terribly flash and needs a paint and to get $700 we would need to update the kitchen and bathrooms.

I wanted to put it up to $550 last renewal, and raise it gradually until we are getting closer to the market rent, but my brother got in before me and put it up from $500 to $525, which is too low.

If they leave, we will get $600 from someone else, possibly a little more. These students are paying $105 each for a room (three rooms are fairly small) and when it goes to $600 they will still only be paying $120 per room which is still a very good deal.

I'd like to put it up to $650 but don't want them to leave really or we will have to do a bit of a clean up, which I'm too busy for just now.

How long have the students each been in there?

 

[wylie]

How long have the students each been in there?

This house has been like the 100 year old axe that has had six new heads and ten new handles. The longest time a student was there was probably during his whole medicine degree and then he stayed on once he was a doctor. He left recently. Initially five young men rented the house, probably over ten years ago. As one would graduate, they would find another. So it has always been one or more anchor or longer term tenants, but nobody from that original lease is there.

Some of these young chaps are new last year or the one before. But at $105 per student per room, this is stupidly cheap. So, I plan on hiking it up to $600 (might even try $625 per week - which is still $100 cheaper than the only house for rent in the suburb with five bedrooms - though it is a nicer house).

If I hike it up to $625 they may take us to tribunal (doubtful) or they may accept that at $125 per student per room, they are still doing very well.

Or... they may leave and then we can paint through and ask $650 or more per week.

Either way, it is not staying at $525, though my brother thinks we should not put up the rent because there is a little retaining wall that needs fixing. I've tried to explain to him that these boys don't care about it, don't go into the yard, but spend their time at uni or gaming. Enough is enough! We need to harden up and charge market rent.

That is one problem with very long term tenants and soft landlords .

 

[WattleIdo]

Enough is enough! We need to harden up and charge market rent.

That is one problem with very long term tenants and soft landlords .

Agree Wylie. I think you'll be fine. Just do it!

If they all move out, you can paint the place.

Wattle