Lease due to expire. Up the rent?

Just received a letter from my agent saying my tenants lease will expire in March. The letter says the rent I'm getting is inline with the area however I would like to increase it slightly especially when interest rates are on the way back up. There are also reports today that rents are on the way up across Australia this year. I had a look at realestate.com.au to gauge for myself the kind of rent that's going in my area and it varies so I'm not exactly sure how my agent says it's "inline". Is there a good website I can check what is the average rent for a particular area?
 
You could always just try to put it up $5 or $10 p/w and see how it goes. Most tenants will take a small increase in stride.
 
yeah that's what I want to do increase it by $10pw. I did drop it by $10pw last year when they took up the tenancy.
 
Hi Joker
what is it and where is it

I have put the rent up $20 in sydney's west ( 3 bed renov'ed house ), but it needs to go up another $20 I would think very shortly it will be at $275 after the next increase and I think it should be way closer to the 300 mark myself , but the PM's argument was 'there good payers so don't annoy them kind of thing '

I'm starting to get a bit more hard nosed about things and less scared of reactions to discisions I make ( I think lol)

stuart
 
Rents increase

Hiya

I put up my rent from $300 to $320 when i picked up a 3 bedder 1 bathroom in Sydney South West two months ago...nothing flashy . The tenants accepted the rise ....

i used to be like you, accepting the PM's view of no increase, good tenants blah blah blah...and then i switched PM!:D
cheers
 
IMHO PM's who tell you to stay under market for long term tenants are lazy. You are paying them to manage the property and part of that management is keeping up with the market.

If you finance a car/house/holiday etc, and the interest rates go up does the bank say "Mr Smith, you have been a good long term customer, so I won't increase your payments?" No! They do not! This is Business and needs to be treated as such.
 
IMHO PM's who tell you to stay under market for long term tenants are lazy. You are paying them to manage the property and part of that management is keeping up with the market.

If you finance a car/house/holiday etc, and the interest rates go up does the bank say "Mr Smith, you have been a good long term customer, so I won't increase your payments?" No! They do not! This is Business and needs to be treated as such.

Exellent way of thinking about it.

You always have to keep reminding yourself you are not a charity and are running an actual business.

If market rents have risen, then up the rent.

I purchased a property middle of last year, and after their lease expired, jumped it up by $45 / week. This was a bit heavy, but this was the market rent. (the previous owners must have been satisfied with their PM's. As you say, the PM should be working in your best interests, and the previous owners should have received incremental rises but didn't.) Once I bought the property I queried it with the managing agents, and they said they didn't get around to increasing the rent......So much as to say, that I didn't get them to manage my property.

Cheers,

F
 
It's a 4 bedder in Upper Coomera Qld. Im getting $380p/w

As a comparison I have a 3 bed 2 bath, single garage townhouse (built in 2001) which is currently getting $330pw in Upper Coomera.

Agree with the sentiments expressed previously, but here's a behavioural influence on how this situation eventuates. The PM will undoubtedly have more contact with your tenants compared to you Some will be influenced, to not be as agressive as you want them to be around rentals, because they have formed this relationship. In addition, and I don't know this for a fact, but I am sure some PM's look at the tenants as paying their commissions not you, the landlord. ie no tenant, no commission.

I would make sure you keep in contact with the PM, even infrequently (when there are no issues), maybe to get an update of the market, ask how the tenants are going etc It will ensure that they know you are fully engaged in your investment
 
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