G'day all,
I got this letter last week, and I'm not sure what to make of it.
I received a letter in the mail from my real estate agent saying something along the lines
'Due to high demand and low vacancy rates in the rental market in <suburb>, your exisitng rental property @ <address> currently tenanted by <tenants name> at <current rate> should be increased to <new rate>.
If you do not respond to this letter by <date> notifiying us to lower the amount of increase, or to stop, we will send a notice of rental increase to <tenant> increasing weekly rent from <new rate>'
It sounds legit, and I will be doing my own research.
But I want to know if this is the agent's way to try an earn an extra 110% agent leasing comission? (by increating the amount enough to annoy the tenant, so they move out, and get a new tenant and earn their commission).
The proposed increase is $20 per week. which I think might be excessive enough for the tenant to feel they are being treated unfairly.
I had always considered increased by $10/wk tops each year.
All thoughts are welcomed
inflating and rental increase is normal. but yes sometimes agent increase the rent in the hopes the current tenant moves out and when the new tenant moves in they get the first week or 2 weeks rent.
but if the market good for you then by all means increase the rent. if you think the tenants can handle it.
also often it's more about if they are good tenants or not. sometimes it's better to get good tenants then risk it and get bad tenants. if the tenants are good just keep the rent the same. when they decide to move out when they are good and ready then increase it for the next tenants.
you have to ask yourself is it worth it? risk losing 1 weeks rent or more if no one rents the place or lose $20 each week. how many weeks will it earn the 1 week that's lost?
