ignorant investors or crap agents?

[skater]

We are going to change PMs very soon and I suspect the new ones will (I hope) will suggest a rent increase.

You don't need to wait for the PM to suggest a rent increase. Pick up the phone first thing tomorrow morning, call the PM and tell him/her that you want the rent to increase $xxpw. You really need to be proactive about this, because even with good PMs it can get overlooked.

I have a spreadsheet with the rents of my IP's the last rent increase and the date for a review. That way, I can double check at a moment's notice. Tenants are also less likely to notice $5-10 increase each 6 months opposed to a big $20-30 increase. If you condition them to small increases regularly, they kind of expect it and don't complain. It costs them more than $250 ($5pw x 12 months) to move and it's inconvenient.

 

[bespoke]

Good point, and good idea about the spread sheet. I have to remind myself that the PMs manage lots of properties and that PI isnt a totally set and forget thing.

Hubbie and I are actually meeting with the principle of a new agency we are thinking of going with, on Friday, so just have to check my management agreement and the PMs (and rent) may be changed quickly soon anyway.

 

[travelbug]

I
Random - you sound like you are quaking in yer boots. Very easy to put the fear of God into a new Landlord, and I've heard ressy PM's say this exact line over and over through the years. Almost all Landlord's bar none buckle under this comment. OK then, hold off on any rent increase if they are alright.

Almost everyone seems to be tip-toeing around the Tenants. They can pick a sucker who will buckle under their demands, or perceived demands a mile off.

It's difficult for sure, especially if someone is prepared to up and leave if you place a piddly $ 5 or $ 10 per week increase on them.....but then I wonder, if one of my business associates is going to sacrifice the business deal over a $ 250 or $ 500 p.a. impost, then really, do I wish to be doing business with that person ?? But that then goes right the back to asset selection, and that's a whole different ball of wax.

Have to agree with what agents say. When I bought my townhouse agent said Oh yes it's $30 under rent but you can put it up $10 and then another $10 in 6 months. I changed agents and put it up $45. Tenant is still happy as the rent is still reasonable (others in block getting a bit more).

I haven't pushed the envelope with any of mine. I think they are all at reasonable rent. I don't think I'm ripping anybody off, nor do I feel I'm being taken advantage of. Everyone is happy.

I can understand people not wanting tenants to move out but having it WAY under market is crazy. Sure one of mine is a little under because I don't want it empty and I'll have to do a few things if tenant moves but I'm talking $10-15 (not $100 like I've been discussing).

In the end IT IS a business, not a charity.

 

[random]

That sounds a bit dodgy, thanks for the laugh.

Back on topic, certainly location comes into it. If the property is in a high demand area or is of a type that is sought after for whatever reason then yuo can be more strict on keeping it at market rents. If it isn't in a high demand area or high demand type then you have to be more careful as you suggest.

Wtf , how the hell does that sound dodgy. Talking locations mine are regional and can go stints empty so you need to be practical not stupid.

 

[mja]

Considering I have to provide tenants with 60 days notice before their rents can be increased, I have all the lease expiry dates in my Google Calendar and a reminder, 80 days before they are due, to "up the rent to market rates".

I tell my property managers what the rent should be, because I stay on top of how the market is moving. Most investors I know, who only have one property, wouldn't do this. They play a different game, as others have suggested, that is fed by fear.

On a side note, if the property I'm going to be purchasing has a tenant that is paying so far behind market rent, then I'll ask for vacant possession. Easier than trying to put the rent up in dribs and drabs, plus avoiding a savvy tenant who will try to drag the landlord through the tribunal process if the rent goes up too much in one hit.

 

[Bargain Hunter]

I bought the damn properties to take care of me in my later years, and that is exactly what they will be doing.

Apparently the properties are there to look after Debbie, "What about me, it isn't fair..."

 

[Dazz]

a savvy tenant

Indeed, there are three legs to this bar stool.


Ignorant investor.....cr@p agent.....savvy Tenant


A triple-combo-deal would produce an awesome spectacle indeed.

 

[wobbycarly]

not so touchy...

I like the idea of looking after a tenant if he does me instead of it being all about money .

my emphasis

That sounds a bit dodgy, thanks for the laugh.

Wtf , how the hell does that sound dodgy. Talking locations mine are regional and can go stints empty so you need to be practical not stupid.

random, Gools was picking up on the double entendre.

 

[random]

my emphasis





random, Gools was picking up on the double entendre.

Well thanks Carly , don't worry that crossed my mind but who know in forums.
Not to worry

Cheers

 

[steveadl]

No-one has yet accurately defined what a "good Tenant" is. Although Bargain Hunter and skater seem to be on the right track. Any Tenant that pays significantly under the market rent is definitely not a good Tenant in my books.

A good tenant is one that doesn't have a voice or a face - just a prescribed $ figure of my choosing that appears in my account every month. Anything more than that is an inconvenience that I like to avoid.

A good PM is one that I talk to twice per year on how much to increase the rent by, though I've made that decision before I talk to them unless they can convince me otherwise.

 

[skater]

A good tenant is one that doesn't have a voice or a face - just a prescribed $ figure of my choosing that appears in my account every month. Anything more than that is an inconvenience that I like to avoid.

Please add to this one that also keeps the house in great condition and does basic maintenance themselves. (I have 2 of them. They are wonderful.)

A good PM is one that I talk to twice per year on how much to increase the rent by, though I've made that decision before I talk to them unless they can convince me otherwise.

And when they do talk to me it's because I'm being too generouse and they think they can squeeze some more out.

Add to this that when problems arise (as even the best sometimes have problems), they have the matter in hand and rather than hand on a problem to the landlord, give them a workable solution.