Hey all,
Long post ahead.
Our family has had an investment property in our name for about 3 years now. The value of the property has fluctuated between 450-480k over that time and it has been rented out to tenants for $480/weekly through an REA. I've recently become interested in property investment and just started to look into the financial side of the property and have discovered that it has been tenanted for 480 per week for the last 3 years! I thought the number was a bit low so I rang around other REAs in the area and everyone said at least 520 up to 580 per week.
Stupidly (this is my first time doing things) I went straight to another agent and requested them to transfer management from the existing REA to their company and have already given them the 30 days notice.
I then realised that the rent would still be stuck at 480 for at least another few months, so wanting speed up the process I phoned and emailed the current REA requesting a rent increase for up to 560 per week thinking that they would comply, give the notice right away, the tenant would probably move out after 3 weeks with an 80 dollar per week increase and my relationship with the current REA would be terminated after 3 weeks instead of 4.
The reply from the current REA, argued with me saying that the market rate was only 520 because there was another 2 bedroom place (ours is a 3 bedroom place) in the same building advertised for that amount. I then asked him why he had mismanaged our place by having it for only 480, and he couldn't give me an answer. On the phone he expressed concern that the tenants would have to move out if I increased the rent to 560. In my mind I was thinking he's probably in cahoots or done some kind of deal with the tenants. In short he said ".. you better go with someone else". I requested on the phone to still increase the rent to 560 and he said "...yeah, we'll see..." and hung up.
So now I'm basically stuck waiting for the 4 weeks and hoping that the REA don't tell the tenants to damage the property or throw the keys away or forcibly not move out or stop paying rent etc. It seems I have absolutely no recourse. Plus the property has no landlord insurance at the moment. I was thinking of getting a policy but the rent is always in arrears (or I'm not sure how to check because the statements they send are always behind). So now I have to wait for the switchover before getting a policy.
I'll admit right now it was a huge mistake to order the rent increase AFTER giving REA the 30 days notice. And also obviously our family members listening to 'advice' given by the REA. What else could I have done differently to avoid such a situation? Is there any way I can make the current REA care about the situation or is it all lost?
TLDR; PM is refusing to increase the rent because he says it is above market rate and that the tenants will suffer, has not suggested a rent increase for the last 3 years.
Edit: In addition, they NEVER return phone calls or emails and whenever you visit there is no one you can talk to besides the receptionist.
Long post ahead.
Our family has had an investment property in our name for about 3 years now. The value of the property has fluctuated between 450-480k over that time and it has been rented out to tenants for $480/weekly through an REA. I've recently become interested in property investment and just started to look into the financial side of the property and have discovered that it has been tenanted for 480 per week for the last 3 years! I thought the number was a bit low so I rang around other REAs in the area and everyone said at least 520 up to 580 per week.
Stupidly (this is my first time doing things) I went straight to another agent and requested them to transfer management from the existing REA to their company and have already given them the 30 days notice.
I then realised that the rent would still be stuck at 480 for at least another few months, so wanting speed up the process I phoned and emailed the current REA requesting a rent increase for up to 560 per week thinking that they would comply, give the notice right away, the tenant would probably move out after 3 weeks with an 80 dollar per week increase and my relationship with the current REA would be terminated after 3 weeks instead of 4.
The reply from the current REA, argued with me saying that the market rate was only 520 because there was another 2 bedroom place (ours is a 3 bedroom place) in the same building advertised for that amount. I then asked him why he had mismanaged our place by having it for only 480, and he couldn't give me an answer. On the phone he expressed concern that the tenants would have to move out if I increased the rent to 560. In my mind I was thinking he's probably in cahoots or done some kind of deal with the tenants. In short he said ".. you better go with someone else". I requested on the phone to still increase the rent to 560 and he said "...yeah, we'll see..." and hung up.
So now I'm basically stuck waiting for the 4 weeks and hoping that the REA don't tell the tenants to damage the property or throw the keys away or forcibly not move out or stop paying rent etc. It seems I have absolutely no recourse. Plus the property has no landlord insurance at the moment. I was thinking of getting a policy but the rent is always in arrears (or I'm not sure how to check because the statements they send are always behind). So now I have to wait for the switchover before getting a policy.
I'll admit right now it was a huge mistake to order the rent increase AFTER giving REA the 30 days notice. And also obviously our family members listening to 'advice' given by the REA. What else could I have done differently to avoid such a situation? Is there any way I can make the current REA care about the situation or is it all lost?
TLDR; PM is refusing to increase the rent because he says it is above market rate and that the tenants will suffer, has not suggested a rent increase for the last 3 years.
Edit: In addition, they NEVER return phone calls or emails and whenever you visit there is no one you can talk to besides the receptionist.
