Lease renewal and the state of the Sunshine Coast market

[jroth]

Hi guys,

My IP in Buderim on the Sunshine Coast comes up for lease renewal at the end of Jan and my PM sent me through an email today recommending we increase the rent by $5 on a 12-month lease. The property is at the lower end of the market being valued in the $300-$350k range.

I know the Sunshine Coast has been slowing for a while and if my PM is doing a good job they would have the finger on the pulse of what the market rent demands, I just feel it is a very small raise to be locked in for 12 months.

I was considering accepting the PM's recommendations but asking them to put in an additional raise of $5 at the 6-month mark.

Opinions appreciated.
Cheers

 

[Spectre]

I had an email from one of my PMs up there that the tenant was 14 days in arrears and he just fixed it up today as we were serving notice to vacate. They said he's bringing in a new rental application tomorrow with another guy to help him pay the rent. Otherwise he cant afford it.

I ended up telling her to put it back out on the market as I'd rather get tenants who pay on time with no hassles and that way we'd put pressure on him as he sat on the renewal for a month as it was.

On the flip side, if he does get out then the timing isnt horrible as I can use it in the last 2 weeks of school holidays as they'll be out.

But I'd go 6+6
The annoying part when you do this is the fire alarms have to be tested again.