Just wondered what kind of amount people have been able to increase their rents to.
WA Rentals
- Thread starter redwing
- Start date
Just wondered what kind of amount people have been able to increase their rents to.
Just received an email from PM for a couple Perth IP's.. They suggest that due to the huge demand for rental accommodation at the moment I should increase my rents $60 per fortnight on each IP inline with current market conditions.
Onthe other hand.....
My wife just had a discussion with my father-in-law.
He has a 4x2 in Dudley park that is rented for $270pw with annual reviews. The tenant only gets a $10pw rise each 12 months. We have a suspicion that there is a relationship between the tenant and PM as the it appears that the PM has been saying that the rent is to market and that the tenants will walk if it is raise too much.
My father-in-law has the mentality that if the tenant goes it will be vacant for a long period with no rent.
Talk about rental subsidy!
Should be about $350pw with 6 month reviews going by what is on offer ATM with a small number onthe market.
I think my wife and father-in-law will be paying said agent a visit shortly to discuss.
My wife just had a discussion with my father-in-law.
He has a 4x2 in Dudley park that is rented for $270pw with annual reviews. The tenant only gets a $10pw rise each 12 months. We have a suspicion that there is a relationship between the tenant and PM as the it appears that the PM has been saying that the rent is to market and that the tenants will walk if it is raise too much.
My father-in-law has the mentality that if the tenant goes it will be vacant for a long period with no rent.
Talk about rental subsidy!
Should be about $350pw with 6 month reviews going by what is on offer ATM with a small number onthe market.
I think my wife and father-in-law will be paying said agent a visit shortly to discuss.
it could be downright incompetence rather than something more sinister
a friend of mine rents a 2 bed apartment in maylands in an old block for $230/week. one has just come up for rent in the same complex, only slightly better condition, for $340
the agents incompetence would be costing the owner close to $5k/year, not that he is in any way blameless either.
from the start this has been rented under market and significantly so
a friend of mine rents a 2 bed apartment in maylands in an old block for $230/week. one has just come up for rent in the same complex, only slightly better condition, for $340
the agents incompetence would be costing the owner close to $5k/year, not that he is in any way blameless either.
from the start this has been rented under market and significantly so
I increased mine by $20 a week, with another $10 a week in six months. If I were to increase it to the current market rate it would have been something like a $55 a week increase. I value the current tenant so I was ok with it. One problem that I keep having is the tenant always comes back with counter offers, so my rent keep getting further and further away from market rates. Next year I'm probably going to have to try to increase it more and see what happens.
You are supposing that charging the market rate for rent will discourage good tenants.
What if it was put another way, that the repairs and maintenance be similarly discounted?
Having followed the belief for years that rent should be kept below market to keep tenants, in hindsight we only lost money not running them on a commercial basis.
What owners should do is work out the real discount on their profit from rental reduction. That could give them a shock, especially if they then work out the compounding effect (negative) over years. Similarly in a business that 10% discount on the sale price could mean you are working for nothing.
Just out of curiosity, how much has your rates/insurance increased per week since the last increase? I'm all for giving good tenants a discount, but I like to keep them up to date with CPI increases also.
