Hi,
me again, with another noob question. In looking around at places for our first IP, I find quite a few that I believe to be rented at less than the market rate. If, for arguments sake, everything else stacks up and a person was to decide that that was the place for them, how do you go about increasing the rent? Is it as easy as just telling the tenant that from (settlement date) their rent will go up from $X to $XX?
This is one of the most extreme cases we've come across:
http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=54299525&s=vic&tm=1257647551
(hope the link works).
I know from the section 32 that the guy in there is paying $715 a month. The place is about to sell (if not now sold) for about $310,000. The tenant is on a month to month tenancy and, according to the agent, has been told that his rent is about to go up. By my estimation, the place - which is pretty rough - is worth at least $240 a week (I know, I know, the numbers are still pretty shoddy ...). Can the new owner simply stick up his rent by that much?
thanks in advance.
me again, with another noob question. In looking around at places for our first IP, I find quite a few that I believe to be rented at less than the market rate. If, for arguments sake, everything else stacks up and a person was to decide that that was the place for them, how do you go about increasing the rent? Is it as easy as just telling the tenant that from (settlement date) their rent will go up from $X to $XX?
This is one of the most extreme cases we've come across:
http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=54299525&s=vic&tm=1257647551
(hope the link works).
I know from the section 32 that the guy in there is paying $715 a month. The place is about to sell (if not now sold) for about $310,000. The tenant is on a month to month tenancy and, according to the agent, has been told that his rent is about to go up. By my estimation, the place - which is pretty rough - is worth at least $240 a week (I know, I know, the numbers are still pretty shoddy ...). Can the new owner simply stick up his rent by that much?
thanks in advance.
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