How Dodgy is this!

[skater]

You would not believe this....

I have a 4 b/r home with a rumpus room/teenage retreat in Perth. I have contacted the "agent" to have the rent increased. Currently we have the house rented out for $215.00 per week.
My "agent" now tells us that she is not sure that we would be able to get anymore than $10.00 extra per week for it!
$225.00 for a house that is in good condition, and all repairs such as guttering etc done when requested.
Okay granted the tenant we have is a single female (with a lot of room) she is good, she pays the rent, keeps the house & yard clean etc.
I live interstate from the IP & yes this is my first IP. I just think this is downright dodgy, I have looked on Re.com and have not found anything around the amount that I am currently getting in the area. The rent has been raised once in 2 years by $5 per week.

Let's get this thread back on track.

I have a similar problem with a PM in a regional town that I have a few IP's in. Now, I am proactive in keeping my rents at market, however in this town, none of the Agents advertise what they have available or the prices. This means that prospective tenants have to ask if they are interested.

This agent is not good, but is the best of a bad bunch. I have asked repeatedly if the rent is due for an increase & I keep getting fobbed off, so what I did, was ring all the agents in the town & ask how much I would have to pay to rent a property with all the features that mine has. All of them, including my own PM said a figure much higher than what I am currently charging.

Next step is the written notice to the PM that I am increasing the rent.

I think that some agents feel that their job is much easier if they can keep the tenants on a lower than market rent. Well, I invest for me, not to keep my PM happy.

 

[TheBacon]

I think that some agents feel that their job is much easier if they can keep the tenants on a lower than market rent. Well, I invest for me, not to keep my PM happy.

I fully agree!!!

Everything else in life is the same. When dealing with doctors, lawyers, consultants, etc, you have to know your own circumstances and know what you want. What is best for you is not always what is best for the other party.

TB

 

[doxa5]

How dodgy is this !!

Goswa,
can you tell us, where is your IP (suberb) ?

Thanks - Doxa

 

[Ausprop]

That's too bad TB, this is the last one you're ever gonna read from me....

Wow - I thought Dazz must have just been on holidays or something. This will leave a vacuum of balanced thought on this forum.

 

[Nards]

Goswa,

We have a fairly average 3 x 2 in a decent Perth suburb, until this month rented for $260/week. We have just increased (via the PM) to $300/wk, on the PMs advice. As suggested by her, we could probably get more, however $40/week is a fairly substantial increase, and we have to weigh up the cost of finding new tenants if the existing one leaves. We do intend however to increase the rent again with the next contract renewal.

It sounds like your PM is doing you a big disservice. The rental market is pretty tight in Perth at the moment, and even if your tenant moved out, the cost of finding a new tenant in the current market should be offset by increasing the rent to market level. Do your research and insist on what you think is a fair increase (I think there may be a limit to the amount you can increase a rent??)....Think you need a new PM....
Best of luck,
Nadia

 

[redsquash]

That's too bad TB, this is the last one you're ever gonna read from me....

You must be in the minority. The vast majority here don't....harsh numbers aren't popular - in whichever form they are presented.

I only ever look at the detailed numbers....the rest to me is just windy fluff and irrelevance in this real estate game. Others here disagree with me on this point. Apparently feelings and emotions come into it, rather than critical analysis of detailed crucial numbers.

Sugar coating seems to be the popular form nowadays. Go the ra ra option.

I don't sugarcoat, never have - never will. Good RE numbers never need it.


Adios forum. Have a huge '08.


GeoffW - scrub me off the list can ya matey.

Did I miss something?
I thought your posts were either fine, informative or great.
They were certainly to the point

 

[redsquash]

You would not believe this....

I have a 4 b/r home with a rumpus room/teenage retreat in Perth. I have contacted the "agent" to have the rent increased. Currently we have the house rented out for $215.00 per week.
My "agent" now tells us that she is not sure that we would be able to get anymore than $10.00 extra per week for it!
$225.00 for a house that is in good condition, and all repairs such as guttering etc done when requested.
Okay granted the tenant we have is a single female (with a lot of room) she is good, she pays the rent, keeps the house & yard clean etc.
I live interstate from the IP & yes this is my first IP. I just think this is downright dodgy, I have looked on Re.com and have not found anything around the amount that I am currently getting in the area. The rent has been raised once in 2 years by $5 per week.

I have emailed the agent and told them I don't agree and they have yet to get back to me.

What is the most the rental can be increased by assuming the tenant chooses to stay on and pay the increase?

I have NEVER had an agent agree with me on increasing the rates to a set figure.
Funnily enough I have always pushed for a higher figure and got it.
If you are so far below the market value then it looks like you don't know the market either. I would shoot myself if my rental was similar to yours given
the info you have written.
Get another agent to visit your property and ask them to back up their figures from existing properties they have in the area

 

[BayView]

Let's get this thread back on track.

I have a similar problem with a PM in a regional town that I have a few IP's in. Now, I am proactive in keeping my rents at market, however in this town, none of the Agents advertise what they have available or the prices. This means that prospective tenants have to ask if they are interested.

Which town is it?

 

[peterkin]

Hi Goswa,
$215 per week for your property in Thornlie is well below the market price. I have a small 3 bedroom duplex in a neighbouring suburb, it wouldn't be considered as good an area as Thornlie.
I was advised by my PM to raise the rent to $230 - $250 six months ago. The tenant looks after the place well so I raised it to $230.
If you cannot get through to the PM, it might be worth calling the Property Management Company's head office in Perth.
Regards Peterkin.

 

[TheBacon]

I would shoot myself if my rental was similar to yours given the info you have written.

!!!

If ever you get to that point, drop me a PM or email and I'll bring some beer or a nice bottle of wine around and try to talk you out of it. Its only money after all

TB

 

[Superstitionist]

How I deal with my PM.

I have emailed the agent and told them I don't agree and they have yet to get back to me.

Hi goswa,

I was having the same problem with my PM, I needed to negotiate the amount with him every time for the increase.

I have changed my tactic recently, instead of negotiate with him, I did my own research, come out with a FAIR figure, then 2 options for the PM and 2 options for the tenant.

Option for the PM.
(1) Use that figure to negotiate with the tenant
(2) I will change PM if he is not willing to negotiate

Option for the tenant.
(1) Accept the increase
(2) Move on

The key of this tactic is the figure has to be fair and be justified.

It seems to work fine for me...

Super.

 

[JIT]

Psst...Dazzling, maybe you haven't ever checked your 'User CP', but, all those green dots next to your name sort of means people here (and a LOT of them) like you and your posting contributions...?!

 

[sailor]

I have my doubts about some PM's. Two of my units became vacant in Nov 07. I did some renos...took 2 weeks. PM gave me an estimate of how much I could expect in rental increase. Units still vacant...methinks she has grossly over-estimated the market. I'm now in the process of getting my own feel for the market and will advise her of what to ask.

 

[Lacasa]

I just raised the rent on a 3 x 2 from $360 to $390. I originally asked for $400 a week but tenants asked if I could reduce to $390. They would have paid if I insisted. As they are probably the best tenants I could possibly ask for, I had no problem with going down ten bucks a week. They basic way I make a judgment on how much to increase the rent, is to check the West Australian Newspaper for rents in my area and the do a quick search on the internet. You can quickly get a “feel” for what the rent should be for any particular size house in most locations and as long as I’m in the 5% +- bracket of that average range I have never had a property vacant for longer than a week.

Lacasa