Rent Rises - What is the truth?

[Witzl]

2bd Townhouse in Padstow, Sydney
July 05 Rent - $240/wk
April 07 Rent - $270/wk
April 08 Rent - $300/wk (just renewed with a 6 mnth lease)
--> increase of 11% in this last 12 months.

If the tennant had wanted a 12 month lease, we were recommended to increase rent to $310-315 (a 14-17% increase) by our PM.

 

[linglc]

Coopers Plains, QLD
March 08 - increased from $340/wk to $365/wk
= 7.4%

Goodna, QLD
Oct 08 - due for increase (as suggested by pm) from $225/wk to $265/wk
= 17.7%

 

[travelbug]

1 year ago $260 pw
Today $260 pw ?????? BUGGAR

Why?

Friend at work said her rent was $230 for a 3 bed house inner Sydney. I said "you are crazy". She searched and found out market rent is $330. Tenants have been there 10 years. She put the rent up $30. They complained. Oh well. Now she says she'll put it up every year.

My son is in a studio in Darlinghurst. He has been there for 11 months (6th month lease). $190 a week. It's run down and wants to move but things worse are $30 more. I told him to be quiet and lap up the extra money while he can as he's leaving to travel soon anyway.

 

[Witzl]

LynneeD - if i was your friend i would jack the rent up to market value. If the tennant doesnt like it, they can move..... it would take about 3 days to find a new tennant!!!

 

[travelbug]

LynneeD - if i was your friend i would jack the rent up to market value. If the tenant doesn't like it, they can move..... it would take about 3 days to find a new tenant!!!

Exactly what I said. She's had it for ages with little mortgage. She said they are good tenants.
Oh well- it's only money. Call me crazy but I can't see why you would throw away $100 a week, no matter how nice they are.

 

[triton07]

Sydney 2 BD Unit.

April 07 - $260
April 08 - $320 (23% increase)

 

[Chris.R_WA]

Perth 1 -
May 07 $260pw
May 08 $300pw = 15.4%

Perth 2 -
Aug 07 $210pw
May 08 $265pw = 26.2% (2.5K spent on new carpet & paint)


Chris

edit: Both 3 bed houses

 

[DrJ]

All Qld.

10.5% average rise over 8 properties from March 2007 to April 2008.
(No extras joined the fleet)

3 houses North Qld
3 units + 1 house SE Qld Metro/Gold Coast
1 unit Central Qld

Worst case 0% rise (Gold Coast).
Best case 20% rise (Central Qld).

Certainly a good year - helps bring up the average!!

 

[Francesco]

A range of houses but those in ACT are restricted to about 4-6% because of Tribunal restraint. In ACT, IP investors subsidise the renters and increase is levied after every 12 months. If interest rates continue to go up investors will have to cut costs and PM may get less business. My unit in Brisbane allows rent to increase more or less in line with market by about 10%. However units in Melbourne receive indexed rise of about 5% and I don't understand why it is not higher.