This thread interests me because I believe we may be seen to be gouging our students in a house if we raise the rent. However, we would be raising it to what it should be now.
The house is five bedroom, two bathroom, nice old queenslander near the hospital and close to the Green Bridge to uni. It is pretty basic inside and we've had the "same" tenants there for well over ten years I reckon. When I say "same tenants" the last of the original students left just recently. He is now a doctor and was there through his study and after. Each time one leaves, they get in a mate, so it is like an axe that has had five handles and three new heads.
My late mother put them into the house and, like often happens with long term tenants, the rent slipped behind. We've been raising it bit by bit. We don't want to scare these chaps off. They live like "students" but the house is just messy, not damaged or dirty, but needs a renovation once they go. Once they leave we are likely to need to redo both bathrooms (old, dated, unattractive for a new tenant) and the kitchen (solid timber, dated, okay for new tenant but not very appealing).
So, rather than up the rent too much in one go, we've been creeping it up. It must be the only 5 x 2 in Annerley for rent at $525 per week ($105 each). When we renewed their lease, I was going to put it up to $550 ($110 each) for six months and then increase to $600 ($120 each) at next increase.
Instead, my brother decided because we needed to put in a small retaining wall at the front and they have to look at bare dirt, he raised it to $525 (was $500). I wanted to give him a good slapping because, whilst they are students, they are getting a very good deal at $525 per week.
I said to him (but it was too late as he'd done a new lease already) that they don't care about the dirt, and they have so much crap inside and under the house and live like teenagers, that keeping the rent low due to a bit of gardening that needs doing is a joke.
I'm going to make sure I do the increase next time and will be asking $600 per week. Most "rooms" are going for $150 to $200 per room, depending on condition, size, location. Even if we charge $600 these students will be paying super cheap rent at $120 each.
But... I reckon we will be seen as greedy landlords, instead of being seen as being rather soft for having this house so cheap for so long. Time will tell.