One thing i will be doing is giving my tennents 1 week free rent over the christamas period when it is needed most. Rents will not rise more than a few bucks a year and only when vacantated if they are really good wont rise at all. rather a good tennant paying $10 week less than you could get with a bad or no tennant.
Tenants stay longer?
- Thread starter Monstango_2010
- Start date
photo guy:
A very noble idea. But for me I'd also be wary of getting "too nice" that could potentially back-fire on you, when the tenant starts thinking they might be able to take advantage of you (eg. let's give him some sob story - how bad can he be - he gave us a free week's rent at Xmas).
A very noble idea. But for me I'd also be wary of getting "too nice" that could potentially back-fire on you, when the tenant starts thinking they might be able to take advantage of you (eg. let's give him some sob story - how bad can he be - he gave us a free week's rent at Xmas).
Rent increases
Talking about rents, do most investors jazz their IP up as soon as purchased for obtaining maxium/higher market rent or use the following scenerio?
Year lease, market rent.
2nd year offer choice of $10 rental increase p/w plus their choice of
*airconditioner
*pergola
*security screens
*landscaping
or something else that the tenant could suggest to give them a sense of ownership not to leave, and look after the place
or $5 week increase for year lease with no improvements?
These figures should be based on market rent and return on investment for improvements.
What do other people do??
Regards
Marge
Talking about rents, do most investors jazz their IP up as soon as purchased for obtaining maxium/higher market rent or use the following scenerio?
Year lease, market rent.
2nd year offer choice of $10 rental increase p/w plus their choice of
*airconditioner
*pergola
*security screens
*landscaping
or something else that the tenant could suggest to give them a sense of ownership not to leave, and look after the place
or $5 week increase for year lease with no improvements?
These figures should be based on market rent and return on investment for improvements.
What do other people do??
Regards
Marge
B
brains
Guest
Just increase the rent at every opportunity
Re: Rent increases
). I can carry on, but it’s all similar really.
Read about giving a week free rent for Christmas… Well, it is generous and compassionate indeed. I am not sure if it is a good or bad though. What if one Christmas you will not give it, what if they already expect you to do that and spent the money? I reckon, it complicates hell out of simple business relationship, and probably a postcard/chocolate may achieve similar results for fraction of the cost.
I usually take the second scenario. It works well for me. Here is the latest example – 12 months lease, closer to the end tenants asked for aircon, two heads split system was installed – 15$ p/w rent increase. All parties were happy signed another 12 months lease as a result . Another example – 12 moths lease to international business students. I was thinking to jazz up a kitchen a bit, but tenants pleaded to leave everything as is and do not rise the rent – rent went up by 5$ p/w, another 12 moths lease. I explained that 5$ was purely CPI related – tenants understood (probably because they are business students
). I can carry on, but it’s all similar really.Read about giving a week free rent for Christmas… Well, it is generous and compassionate indeed. I am not sure if it is a good or bad though. What if one Christmas you will not give it, what if they already expect you to do that and spent the money? I reckon, it complicates hell out of simple business relationship, and probably a postcard/chocolate may achieve similar results for fraction of the cost.
Re
Has anyone given tenants different payment options in exchange for longer lease? <snip>
I give tenants discounts, but they have to earn it. I might say , if you stay a year I will give u the first X weeks free ( in the future), if they sign another lease to stay on - instead of reducing the rent . This gives them a definate encouragement to stay on - it protects u against loosing out if the tenants break there agreement and leave early.
<- This has happened to me.
Has anyone given tenants different payment options in exchange for longer lease? <snip>
I give tenants discounts, but they have to earn it. I might say , if you stay a year I will give u the first X weeks free ( in the future), if they sign another lease to stay on - instead of reducing the rent . This gives them a definate encouragement to stay on - it protects u against loosing out if the tenants break there agreement and leave early.
<- This has happened to me.
Have an interesting tenancy at present.
Recently got PM to increase rent to current market level with new tenant. New tenant was taken away for car stealing. Trouble was, girl friend who had just moved in & didn't know what was happening was devastated. For a month no rent was paid & when PM saw girl friend, she said she'd like to stay on as an official tenant. To her credit, she has paid 5weeks rent in the last month but playing catchup on the higher rent is difficult. PM & I have decided to reduce rent to original amount but still charge new amount till outstanding rent amount is absorbed, then keep rent on new amount. Tenant will not know except for the day the PM informs her the debt is paid & would she like a 12mth lease to lock the new rent in (market rents are rising again already)?
Cheers Brenda
Recently got PM to increase rent to current market level with new tenant. New tenant was taken away for car stealing. Trouble was, girl friend who had just moved in & didn't know what was happening was devastated. For a month no rent was paid & when PM saw girl friend, she said she'd like to stay on as an official tenant. To her credit, she has paid 5weeks rent in the last month but playing catchup on the higher rent is difficult. PM & I have decided to reduce rent to original amount but still charge new amount till outstanding rent amount is absorbed, then keep rent on new amount. Tenant will not know except for the day the PM informs her the debt is paid & would she like a 12mth lease to lock the new rent in (market rents are rising again already)?
Cheers Brenda
