Rent increase

What type of notice do you give for an increase?.

Also the lease is about to expire. Should I make them sign a new lease or just go month to month now.
They are good tenants and never missed payments of rent, but I have spent a little money on the IP in the last 12 months and also the rent weekly median price has jump by $10.

Also my landlord insurance is up for renewal but if I go month to month I don't think it covers me anyway.
So good tenants pay on time so don't worry about landlord insurance?

Thanks for any advice:)
 
Read your state's legislation for rent reviews I assume that you are in NSW so it would be 60 days + 4 days postage.

Good tenants can go bad (they might start doing meth) - so keep your LL insurance.

For security of cashflow, renew your lease - you may want to consider a longer lease, discuss it with them.
 
Thanks Scott,

Yeah you are right good can go bad.

My IP is in Victoria so I'll let the agent know that I need to do a new lease and what ever notice needs to be done with the increase.

Thanks again:)
 
Also have a look at properties on the market that are similar to yours to see where prices are.
If you can put it up $10 and still be market price then why not do it.
 
Thanks Nick,

Now a good property manager should be doing this anyway?, Or its my job to tell them when an increase should happen?.
 
Your PM should be making the recommendations to you not vice versa. They are closer to the market (I would assume that they would have a handle on what is required and the obligations for notification of rent reviews). If they can't handle the task, maybe they shouldn't handle your property either.
 
Your PM should be doing this for you, about 3 months or so out.

If your insurance doesn't cover periodic leases, I'd strongly suggest shopping around as in Victoria you cannot force a tenant to sign a lease and you can't issue a NTV if they won't.... Well, you can but VCAT won't like that!
 
Thanks Nick,

Now a good property manager should be doing this anyway?, Or its my job to tell them when an increase should happen?.

Of course they should be doing it. Lots of small details like that often gets overlooked when the main focus is on new properties because they get commission on new managements only.

Reviews should be done every 12 months. So your property manager should be contacting you about the market rent in that time period if they are on the ball.
 
Just issued a rent increase for my I.P in Vic. My property manager contacted me explaining how rents had gone up and recommended that we also increase ours by $20 a week. As everyone here has said, if you're paying a property manager money to manage your property, they should be keeping an eye on the area and the rent. Let's hope they're on the ball!

Also, +1 for EBM. I had Terri Scheer but my tenant refused to renew agreement, so went onto Month by Month agreement. Property Manager strongly recommended EBM because they allow month by month.
 
Just issued a rent increase for my I.P in Vic. My property manager contacted me explaining how rents had gone up and recommended that we also increase ours by $20 a week. As everyone here has said, if you're paying a property manager money to manage your property, they should be keeping an eye on the area and the rent. Let's hope they're on the ball!

Also, +1 for EBM. I had Terri Scheer but my tenant refused to renew agreement, so went onto Month by Month agreement. Property Manager strongly recommended EBM because they allow month by month.

Youi also allow month to month, as long as you let them know.
 
Thanks Guy's,

Well I gave EBM a call today. They said my Rent Cover Platinum covers me for periotic lease.

4 weeks until lease is up, I hope my PM is going to contact me about the market. I know just from looking myself the median rent is up $10 a week.

Lil skater- do you have a office in Geelong by any chance if my current PM doesn't work out.
 
Four weeks is awfully close to the end of the lease, they should've been talking to you months ago! If you want a rent increase to coincide with the new lease, they'll be periodic for a month or so. You can do a lease commencing from the day after the current one expires, and build in an increase though.

Lil skater- do you have a office in Geelong by any chance if my current PM doesn't work out.

I'm flattered, thank you. Although I'm afraid I don't and it's well out of the area I cover. I can't even point you in the right direction either, because someone I knew down there ended up moving away.
 
Well looks like I'll ring them tomorrow. Its a pitty they started off so good. The original manager left and a new one took over a few months ago.

Lil skater when I thought I was going to buy in Frankston I was going to use you:)

Now I'm following everyone to QLD but doing my DD:)
 
Top