How to increase rent..??

[Chromium]

Folks,

Settling on our first IP soon...Phew..!!! & Yipee..!!!

Already tenanted with a good tenant who keeps it immaculate

Previous LL did`nt bother increasing rent since they were offloading.
So tenant has had a good discount compared with current rents.

Our PM has indicated to tenants that they are in for an increase as soon as settlement occurs..but even after proposed increase it would still be $30 less than comparable props in the area. PM advises he will send another increase in next 6 months. But even then I think it would still be way ($30) below market (hopefully rents keep increasing)

Any ideas on how can I increase the rent to current market without losing and making it bearable for tenant?

I would consider giving $10-20/week discount for keeping it immaculate. Also wish to make tenant aware that they are getting a discount for looking after the property.

Quid pro quo...sort of

 

[alexlee]

Just raise them up to the market rent, within the terms of the lease (some leases may limit how fast you can increase rents and even how much you can increase them by).

If the tenants don't accept, get new tenant who will pay the market rent.

I've never thought keeping the place immaculate is all that important. They have to clean it at the end of the lease anyway, and there is always their bond.
Alex

 

[HandyAndy888]

If you want to soften the blow, you could explain the situation to the tenant and propose a monthly increase up to your value.

 

[Dis]

I'll be facing a similar situation in a few months. I intend to communicate to the tensants alomg the following lines.

- rent will be increased to $x from dd/mm/yyyy
- the market rent for similar properties is $x to $y
- the new rental rate is at the lower end of the spectrum in recogition of the good conduct by the existing tenant (paying rent on time, looking after the property well, and only requesting genuine maintenance items).


I feel the above is fair on both parties, communicates to the tenant that you have recognised his behaviour, communicates that you feel the new rent is already discounted (so dont ask for a further discount please), and minimises the risk of petty maintenence requests (low rent contingent on good behaviour).

 

[steveadl]

Increase them to market at next contract renewal. If that is when you take possession, do it then. If it's 6 months later, then give them the small increment allowed now, and market at end.