Great news! Possible $50 rental increase!

[Alex P Keaton]

Some really good news! Currently earning $230 per week for my 1 bed Dia.nella unit. Lease ends in July & tenant told PM she might move out. In January she was very unhappy with the $10 increase.

Anyway. The other week another renovated unit in my complex asked for $280 per week & got it! So I'm hoping the benchmark has moved & I will be able to get a similar amount. I actually have more cupboard space in the kitchen than the other unit. Both of the units have a renovated kitchen however bathrooms are unrenovated. Also another unit which is unrenovated are asking $250. It'll be interesting to see what happens with that one!

My tenant will have a fit when I up the rent to $280. She can move out if she is not happy as I doubt I'll have troubles letting it! Perths vacancy rate is low ATM & will have no trouble tenanting it. I'll also be able to pick & choose who I want. She has been a good tenant but there will be many more out there that will be suitable. I'll be advertising at market rent. Moving with the times. Its too bad my Highgate propertys lease isn't up for renewal in July too as I'd be able to up that one from $320 to high $300's that is how fast Perth rentals are moving.

So of I can get $280 per week that will put it closer to neutrally geared. The rent will actually pretty much cover the repayments. Probably not the other expenses though ATM. That will come when I am able to get about low $300's most likely. It'll probably cost just a couple of grand per year after I get my tax return back!! Woohooo I hope I get the $280. That would be awesome!!!

Hows everyone else going with rent increases??

 

[Dazz]

Always two sides to every story, isn't there Alex !!

Of course, your Tenant is likely to go and complain about the cost of living pressures. That sure is a big jump from $ 230 to $ 280 pw. (21.7%) Tad above CPI.


Now, onto more important matters, what has happened to your weight in the last 3 months....are you into the 50's yet ??

 

[matto_]

Obviously quite happy, and so you should be.

which thread did you want to keep going

 

[matto_]

Question though, had the rents increased that far in such a short period of time? our was your rent somewhat under market?

 

[Jamie M]

That sure is a big jump from $ 230 to $ 280 pw. (21.7%) Tad above CPI.

I don't know the finer details of WA tenancy laws but are you sure you're able to hike the rent up by so much with the same tenant in place?

In the ACT it's pegged to the CPI - so a spike like that would be deemed "excessive."

Cheers

Jamie

 

[lizzie]

Then - if that is a risk, couldn't you just give the tenant notice to vacate and advertise at the higher fee?

 

[Aaron Sice]

I don't know the finer details of WA tenancy laws but are you sure you're able to hike the rent up by so much with the same tenant in place?

In the ACT it's pegged to the CPI - so a spike like that would be deemed "excessive."

Cheers

Jamie

that's because the ACT is full of public servants who only get wage increases with CPI.

knocking on the door of 2.5% vacancy rate in Perth.

$230pw is pretty bluddy cheap for a unit in Dianella!!!!

 

[Jamie M]

that's because the ACT is full of public servants who only get wage increases with CPI.

Not quite true.

They often get two increases per annum - one that's linked to their collective agreement (usually in line with CPI) and one that's linked to performance (they move up a notch within their APS band).

It's not all APS here either.

Cheers

Jamie

 

[Alex P Keaton]

Always two sides to every story, isn't there Alex !!

Of course, your Tenant is likely to go and complain about the cost of living pressures. That sure is a big jump from $ 230 to $ 280 pw. (21.7%) Tad above CPI.


Now, onto more important matters, what has happened to your weight in the last 3 months....are you into the 50's yet ??

Yep sure is a big jump! Thats the market rent now.

It reminds me of the position I was in a few years ago. Back in 2007 same thing happened to me. Huge rental increase. After renting for about 3 years I decided it was time to buy something. She might do the same as me.


I have lost 2 cm's off my waist! 1.5 cm I think it was off my hips and 2 cm's off my arms. Fat still melting off of me!

Starting to see some nice definition in my biceps and triceps. Tummy is flattening nicely and hopefully soon I'll see some abs. Perhaps in 3 - 6 months time I dunno. Haven't got into the 50's yet. I'm hovering between 60 and 61.5atm. Body composition is changing and people who haven't seen me in 1 or 2 months ask me how much more weight i've lost lol. I say nothing. haha Not on the scale anyway. Have had to buy new trousers and tops as mine are all too loose now.

Still looking to get to about 58 kg. I wouldn't be surprised though if it takes 6 -12 months to get there though haha as I lose scale weight at a snails pace. Actually it doesn't matter if I dont make it to 58. I just want to be able to see a bit of an outline to my abs. So I dunno what number I'll end up at. I'm a size 8 trousers now. I'm pretty much concentrating on clothes size, measurements and my body fat %. BF % is 26.5% I wanna reduce that. The acceptable range for a female is between 17 - 29. I'm stoked to be able to get to under 80 waist measurement. I'm 78 cm now woohoo.

 

[Alex P Keaton]

This message has been deleted by geoffw. Reason: Post duplicated after threads merged

Hi Geoff. I'm confused! Which threads were merged? I wasn't online yesterday so I'm not sure what happened.

Matto

which thread did you want to keep going

lol I have no idea!

 

[Alex P Keaton]

Question though, had the rents increased that far in such a short period of time? our was your rent somewhat under market?

Hi

My unit is/was currently at market value. Was never under market. Aha Rent has increased this much in a short space of time. Its crazy out there haha.

 

[Alex P Keaton]

I don't know the finer details of WA tenancy laws but are you sure you're able to hike the rent up by so much with the same tenant in place?

In the ACT it's pegged to the CPI - so a spike like that would be deemed "excessive."

Cheers

Jamie

I'm really not sure. I will have to talk to my PM about this! Thanks for bringing this to my attention.



Lizzie

Then - if that is a risk, couldn't you just give the tenant notice to vacate and advertise at the higher fee?

Good point raised. I'll chat with PM to see what I can do. If I have to I'll give the tenant notice to vacate and then advertise at the higer rent.


Any WA investors out there! Anybody familiar with the laws? Rixter? Jaycee? Aaron?

 

[HotRod]

that's because the ACT is full of public servants who only get wage increases with CPI.

knocking on the door of 2.5% vacancy rate in Perth.

$230pw is pretty bluddy cheap for a unit in Dianella!!!!

Vacancy sitting around 1.6% ATM and there has been a 10% increase in the median rent to $420 inthe past 12 months.

Nothing to stop you saying to the tenants that you don't want to relet the premises as you want to move in/renovate. They go out and then put new tenants in at the higher rent.

There are 40+ people rocking up to some home-opens for rentals.

It's not called a rental squeeze for nothing.

I'd make the most of it whilst you can.

 

[Alex P Keaton]

that's because the ACT is full of public servants who only get wage increases with CPI.

knocking on the door of 2.5% vacancy rate in Perth.

$230pw is pretty bluddy cheap for a unit in Dianella!!!!

Yeah its $230 pw for a small < 50 sq 1 bed

I have a $200 K loan on this ip and it'll make things easier for me if I'm able to up it to $280 per week thats for sure! Also decrease in IR will help as well!

 

[Alex P Keaton]

Vacancy sitting around 1.6% ATM and there has been a 10% increase in the median rent to $420 inthe past 12 months.

Nothing to stop you saying to the tenants that you don't want to relet the premises as you want to move in/renovate. They go out and then put new tenants in at the higher rent.

There are 40+ people rocking up to some home-opens for rentals.

It's not called a rental squeeze for nothing.

I'd make the most of it whilst you can.

Yeah definately. I'll make the most of it!

I think also because accommodation is getting more expensive I reckon the more affordable properties will be in higher demand. Thats just my thoughts!?

Very exciting!

 

[HotRod]

With a tight rental market, this will force renter's hands and they will buy their own property, driving up the lower end of the market.

Smart investors have been buying properties with the increasing yields due to the tight rental market and there have been indicators showing that the Perth market has now bottomed out and now on the upswing.

Housing listings also dropping which indicates the upswing has commenced.

 

[Bigtone]

Congrats Alex!

Not that long ago you were doing it very tough.

Now you have increasing rents, decreasing interest payments and the real possibility of capital growth in the near future.

Very different to the outlook 6-12 months ago.

Well done on battling through the tough times, you deserve the rewards.

 

[Aaron Sice]

Vacancy sitting around 1.6% ATM and there has been a 10% increase in the median rent to $420 inthe past 12 months.

Nothing to stop you saying to the tenants that you don't want to relet the premises as you want to move in/renovate. They go out and then put new tenants in at the higher rent.

There are 40+ people rocking up to some home-opens for rentals.

It's not called a rental squeeze for nothing.

I'd make the most of it whilst you can.

AFAIK that's overall percentage (houses and units) - units is still a bit higher at 2.5%...

happy to be corrected though.

 

[HotRod]

You might be right there.

Anyway, it is still below a balanced market vacancy rate of 3%, so it is to the benefit of landlords.

That being the case, the vacancy rate for house would be around 1% to balance for the vacancy rate for units.

 

[lizzie]

Congrats Alex!

Not that long ago you were doing it very tough.

Now you have increasing rents, decreasing interest payments and the real possibility of capital growth in the near future.

Very different to the outlook 6-12 months ago.

Well done on battling through the tough times, you deserve the rewards.

plus one for that! Sometimes you just have to hang on by your teeth - but property can be very forgiving if you are prepared to make the tough decisions