Will you be increasing rents?
- Thread starter Prakman
- Start date
My rents are still increasing from the previous interest rate increase. In 6 months, if the market allows it (and I think it will), rents will increase again.
Vote no, but just changed mind.
Tomorrow just happens to be when I have booked six PM's to give me a rent appraisal for my duplex..... Still on the hunt for a good PM. A new realestate company has opened up and it'll be good to see what they can offer.
BTW Prakman you are correct. poor tenants.
Aaron
Tomorrow just happens to be when I have booked six PM's to give me a rent appraisal for my duplex..... Still on the hunt for a good PM. A new realestate company has opened up and it'll be good to see what they can offer.
BTW Prakman you are correct. poor tenants.
Aaron
G'Day
Yes, this is the opportune time to review all rents which are not subject to lease constraints.
It's quite a while since I reviewed rentals, and in that time there have been interest rate increases, increases in insurance, municipal and water rates, maintenance costs etc
I used to do the annual nibble, but in recent years have decided that a decent bite every so often is a better idea. This way, I can 'review to market' for sitting tenants and if they decide it's time to go, at least I can be confident that the new rent will be 'fair market' rent.
Regarding 'poor tenants', no, I don't think so. Everyone has to face rises in the cost of living. If the tenants had a mortgage there would be no 'well, this will be a bit inconvenient so we won't put the interest rates up until next year'. They, like us, would be paying the increase immediately. In fact, because of the constraints on providing appropriate notice, no increases during a fixed term lease etc etc the tenant, unlike the owner, is given breathing space and time to prepare for the increase.
I, for one, will be contacting my property manager tomorrow to request a full review of the relevant properties and implementing the increases as soon as possible.
Cheers
Kristine
I voted no the tenants we have have been with us for a while,they pay on time,never complain,and that within itself is worth more than the extra20 bucks a week in rent,if I was to jack up the rent by 10% they would move out,then as you all know finding that right person can be very hard but i do think if you jack up the rent by $50.00 they will walk..imho..
Iv'e been saying this for a while now the rents can only go so high before something gives and that may have already started, because i'm starting to see the For Rent-For Lease signs stay up outside vacant properties for up too 6 weeks now in inner Brisbane,something to think about....willlair..
rents are so tight in newcastle that tenants haven't much choice to move - but i've just recently put all mine up by $10/wk, so not up for review for another 4 months and then (depending on the rental market) i'll probably put them up another $5-10/wk.
all my tenants are long term, and although i have been putting up rents in the past in line with market rates, this will only just start to bring them into line for what market rates are now when a house is vacated (about $50-60/wk above what they are paying).
$10/wk is not worth the tenants while to move ... but over half a dozen properties makes a difference to me.
all my tenants are long term, and although i have been putting up rents in the past in line with market rates, this will only just start to bring them into line for what market rates are now when a house is vacated (about $50-60/wk above what they are paying).
$10/wk is not worth the tenants while to move ... but over half a dozen properties makes a difference to me.
Yup - putting all mine up also. Kinda like a Merry Christmas present from your friendly landlord isn't it?
Last Christmas eve I had my PM send a notice of eviction to one tenant who was way behind on his rent and also making a nuisance of himself to the neighbours and I don't have to do that this year. I was wondering how I could top that - and now I have the answer.
bah humbug!
Last Christmas eve I had my PM send a notice of eviction to one tenant who was way behind on his rent and also making a nuisance of himself to the neighbours and I don't have to do that this year. I was wondering how I could top that - and now I have the answer.
bah humbug!
That is what I was going to say! The max rent you can get is determined by supply and demand, not interest rates!
Has anyone atempted 10% increases to EXISTING tenants after lease expiry..and not resulted in them moving out?? I'd love to try.
Why does it matter whether it's the same tenants or not, though? One renter's money is just as good as another's.
Alex
You can only increase rents if the market allows it.
I did try 10% on 3 of my IP's and lost 2 tenats but no problems I found new tenants in less than 2 weeks and they were happy with the new rents.
Some tenants are really good and I would hate to lose them.
Tenants who are trouble free and keep the place in immaculate condition will only get small increases.
Cheers
I did try 10% on 3 of my IP's and lost 2 tenats but no problems I found new tenants in less than 2 weeks and they were happy with the new rents.
Some tenants are really good and I would hate to lose them.
Tenants who are trouble free and keep the place in immaculate condition will only get small increases.
Cheers
Relets can get costly both in time and fees, and new tenants may not be as good as the existing.
In the current market, though, vacancies are minimal. As for tenants being not as good as existing..... I have only one property where I'm willing to keep the rent below market. Mainly because the tenant has been there for years and if anyone else came in I'd probably have to renovate the place.
Other than that, I haven't had such 'good' tenants that I'd want to keep if it meant losing out a thousand or two in rent.
Alex
Quite agree,
and unless the increase is a decent one, the re-letting fees will eat up all the increase in the first year.
My PM's have indicated rent rises for 3 of ours with the new leases in the next couple of months. This will offset the rate rises a bit.
I wouldn't say that, I've actually got better tenants in both IP's.
I also had the opportunity to clean up and to do minor repairs.
Cheers
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