Rent rise of 30% in 12 months -any one else having this?

[Monopoly]

Would you rent out your IP to family for a cheaper price in return for taking extra care of property????

Nope!!!

And if you want to know why, re-read your own post!!!

 

[Les]

G'day GeorgesA,

If they are doing you a favour by looking after the house well, then you'd already returned the favour by allowing them a lower rent - so you're even.

But then, time goes by - at the very least, I would suggest applying a CPI increase each year they are in there. They will still be getting a low rent (relatively speaking) and you will still be having "family" in there looking after the place - but keeping the rents at a more realistic level.

If they've already been there for two years, look at upgrading the rent by the amount of the last two CPI increases.

It's not up to you to subsidise your relatives' living expenses, surely. Do you think THEY would expect this?

Regards,

 

[kissfan]

I offered the house to close cousins for $215 a week. Now the cheapest available rent in my area is $250 so im really missing out on lots of income... Well around 1900 a month.....

Hi George.

Don't mean to nitpick, but I don't think the figures are as bad as you think.

If the median rent is $250, and you're getting $215, that only equates to $140 less per month (approx).

How do you get the $1900 per month figure?

As already mentioned, if your cousins are looking after the place, (not always the case though), then sometimes a little less rent is worth the SANF.

Regards
Marty

 

[tigerGT]

Hello kissingfan!

OOOPs, what i meant to say was 1900 a year. sorry. I think it probably is worth it though.. I guess im paying 1900 extra a year for that little bit extra peace of mind...

Georges

 

[gekko_99]

If the rents too good for them to move out just make sure in 10 years time its still not rented at todays rent; maybe have that discussion up front.

 

[IanF]

We had one go from $170 to $220 in one hit. We wanted to put it upt to $180 but tenant thought that it was excessive (after 3 years at $170) so they moved out (they ended up paying $210) and our place went fdor $220 within days!

Just goes to show . .

Ian

 

[GreatPig]

I offered the house to close cousins for $215 a week. Now the cheapest available rent in my area is $250 so im really missing out on lots of income

Another thing you might need to consider if you're claiming interest deductions on the mortgage is that the ATO may not look too favourably on renting to relatives at below-market rates. If they deem that to be happening, they may not allow all the loan interest to be deducted.

GP

 

[Peter 14.7]

A friend moved his inner city Syndey I bed from $300 to $350 recently. That 18%. Mind you the new agent was very savvy.

Peter 147