Inner ring Brisbane - how are rents going? Up, Down, stable?

[wylie]

I'm curious for those with IPs in Brisbane whether your PMs have been increasing rents of late.

I have two IPs in Coorparoo coming off twelve month leases and thought I would increase by $10 per week. I've been told by a PM that this is what is "generally" done by their office.

I was told last night by a real estate agent that "rents have fallen locally" and I'm curious to hear whether landlords (via PMs) have been raising rents in the past year or two in Brisbane, inner circle.

I'd like the extra $10 if I can get it, but searching through rent adverts on re.com is not easy. They all look better in the photo than in real life and most houses from $400 to $600 can look pretty much the same quality. It is hard to compare them just from the photos.

One house in Coorparoo we have been getting $525 for the past 18 months. I told the tenant we would likely raise the rent to $535 and it seems she will stay on (with two others to share the cost). Average rental in Coorparoo is in the mid $400s so we enjoy higher than average rent for this place, which is attractive, nice and clean, but noting to write home about. However, clearly it is better than something renting for mid $400s or it would have sat empty.

In the past we have tended to have tenants turnover every two or so years and that is when we bring the rent back to market, but both these houses have tenants who are great and we don't want to lose for the sake of $10 a week, but also don't want to fall behind as both tenants are "long term".

 

[SENIOR]

I have a rental in Carina which is empty The rent has been increasing on this property for 11 years when I bought it Now had to reduce the rent by $40/week So considering selling as I live in Melbourne Retired and use the profit to invest in higher yield

 

[Anh]

I'm curious for those with IPs in Brisbane whether your PMs have been increasing rents of late.

I have two IPs in Coorparoo coming off twelve month leases and thought I would increase by $10 per week. I've been told by a PM that this is what is "generally" done by their office.

I was told last night by a real estate agent that "rents have fallen locally" and I'm curious to hear whether landlords (via PMs) have been raising rents in the past year or two in Brisbane, inner circle.

I'd like the extra $10 if I can get it, but searching through rent adverts on re.com is not easy. They all look better in the photo than in real life and most houses from $400 to $600 can look pretty much the same quality. It is hard to compare them just from the photos.

One house in Coorparoo we have been getting $525 for the past 18 months. I told the tenant we would likely raise the rent to $535 and it seems she will stay on (with two others to share the cost). Average rental in Coorparoo is in the mid $400s so we enjoy higher than average rent for this place, which is attractive, nice and clean, but noting to write home about. However, clearly it is better than something renting for mid $400s or it would have sat empty.

In the past we have tended to have tenants turnover every two or so years and that is when we bring the rent back to market, but both these houses have tenants who are great and we don't want to lose for the sake of $10 a week, but also don't want to fall behind as both tenants are "long term".

Hi Wylie, with the recent government cut of spending and staff, a lot of people have lost their job or their contracts are no longer renewed. My work recently recruited and found a much larger number of applicants than expected compared to the last few years. With this would mean that more people might reduce their expenses and try to move further to a cheaper place. One of my tenants has lost his job so he lately has been late on rent, another who works for the bank has been talking about her work will be restructuring. My guess is if your tenant has a stable job then she might still be able to take on the rent increase.

Cheers
Anne

 

[twobobsworth]

Spoke with a pm last week who said rents haven't moved in the last 12 months around coorparoo.

 

[TheShuffler]

We just put the rent on our unit in Balmoral up $10 from 425 to 435. Initially the PM suggested we didn't move it as the tenant was a 'good' tenant and had been paying rent. I had to remind him he works for the landlord! After looking around, there seems to be limited rentals. The tenant requested a 6 month lease so we offered that at $445pw or 12 months for $435. They took the 12.

 

[mattysavager]

It depends when you're renewing their lease.

We have around 200 leases expiring in January around Brisbane, and almost all of them have accepted a $5-$10 increase for a 6 or 12 month lease.

Properties rented in January/July will usually rent for $10 more than in Spring/Autumn. Seasonal demand. It is easier to send a lease renewal with a rent increase for leases that end in January, as most tenants know it can be really tough to have an application approved in peak times, and will rather just pay an increase.

There are some suburbs and properties, for which we strongly advise the owners NOT to push for an increase. Particular areas are flooded with new units that are $20 cheaper than ones we currently have tenanted. Many owners know best, and those are the ones who end up with $20 less per week after having it vacant for 1-2 weeks.

 

[russellpeter]

hi Guys

Please see the attached information from the RTA on what bond money has been deposited each month in cooparoo.

hope this helps.

 

[Ed Barton]

I have two IPs in Coorparoo coming off twelve month leases and thought I would increase by $10 per week.

I'd like the extra $10 if I can get it, but searching through rent adverts on re.com is not easy. They all look better in the photo than in real life and most houses from $400 to $600 can look pretty much the same quality. It is hard to compare them just from the photos.

One house in Coorparoo we have been getting $525 for the past 18 months. I told the tenant we would likely raise the rent to $535 and it seems she will stay on (with two others to share the cost). Average rental in Coorparoo is in the mid $400s so we enjoy higher than average rent for this place, which is attractive, nice and clean, but noting to write home about. However, clearly it is better than something renting for mid $400s or it would have sat empty.

If you haven't put the rent up in 18 months, and the price 18m ago was reasonable then $10 is totally totally doable.

Share houses (from what you've said, there seems to be three sharers there) tend to tolerate increases more than families. Each tenant only has to chip in a few extra bucks a week.

I agree, looking on the web can be confusing. If you've got time go to rental OFIs. It can help you to determine demand; check back on the net to see what has rented. Chatting to 'fellow' renters can also be enlightening.

In the past we have tended to have tenants turnover every two or so years and that is when we bring the rent back to market, but both these houses have tenants who are great and we don't want to lose for the sake of $10 a week, but also don't want to fall behind as both tenants are "long term".

If they're long term, then they are happy with the place are highly unlikely to move over $10 pw. A long lease for these types may be more attractive than the price.

 

[sarahirvine001]

You should be receiving a 3% increase on your leases annually due to inflation.

 

[Rixter]

Tenant at my Upper Mount Gravatt IP 12 month lease expires next week.

My PM gave the tenant the appropriate notice required to increase rent to $405 (an extra $5 p/w). PM reckons it should really be $410 (a $10 p/w increase) but suggested to keep it at $5 because they are a good tenant and this time of year not a good time of year should the tenant decide to move on.

Long story short, tenant gives notice to leave due to the rent increase, however my PM found a new Tenant at $410 (including the extra $10 p/w) with no days vacancy between change overs.

Starting them a 6 month lease expiring mid year too.

Im very happy.

All my other IP's around Brisbane (south & bay sides), rents have been increasing $5-10 p/w as leases have come up for renewal over the past few months.

 

[wylie]

You should be receiving a 3% increase on your leases annually due to inflation.

That doesn't always work. Local agents have told me that rents are pretty flat around this area. We will ask an extra $10 per week because 3% would be an extra $15. We probably would not lose them for that, but I'm not prepared to take the risk right now.

Other agents tell me they try to increase by $5 or $10 each lease renewal and we will try a $10 increase rather than lose $525 for an empty week and pay another $525 plus GST plus advertising if we push it too far.

 

[buzzlightyear]

You should be receiving a 3% increase on your leases annually due to inflation.

Given the nature of the resi market, it would be my thinking you should try and be at or around market price at the key rent review dates (so in Vic, every 6months or at a new tenancy). That might mean increases in excess or less than those you propose above.

In 2 very recent examples right now case right now, I was advised that I should leave rent as is. I went against this and increased rent by $5 pw (1.3%). In another case I have raised the rent by $10pw (4.5%). On another 2 months ago, I left as is. Swngs and round abouts I guess.

I realise (assuming actually) that you are using CPI - All Groups as a baseline to at least start assessing how your rents are performing relative to price inflation, and that might be a good starting point. But I would argue, that if you want a CPI measure you should look at the CPI - Housing Group and more specifically the subcategory of Rents. Because that is a more accurate assessment of how of your specific property is doing against all other property rents inflation measurement.

 

[chindonly]

Our have been stable for about 18 mths. Same rent or very small increase.