rental review

Hi bedean,

I think that there are quite a few factors you need to consider:

Does the lease give you the right to increase the rent during the term? The answer is usually no if the tenant is on a fixed term lease.
Is it a good tenant? It’s better to keep a good tenant on the same rent for years, rather than try to squeeze an extra $10 per week and risk losing the tenant.
What is the current market rent for your property?

There’re probably other factors too, but it’s late and the brain isn’t working. Maybe someone else can pitch in. But I think you can see what I’m getting at.

Cheers
M

I agree with everyone as well I have a rental property and has been rented for 3 yrs with no increase, the tenant has just approached me and asked if he could paint the inside to freshen it up, so by keeping the rent the same makes the tenant happy and in the long term your in front especially at the moment there is a glut of rentals about and there is more to come especially that everybody is playing the property market.

Another friend of mine increases the rent by $5 a year and he is constantly changing tenants and his vacancy rate is high so is it worth it. If you can handle the investment try to leave the rental the same for your tenant and review the rent after the tenant leaves.

So hope this helps you.

1 qustion
why should a tenant expect there rent to stay the same over 2-3 yrs , when the cost of everything increases the upkeep of the house they live in has to be payed plus the loan where not all millionare property owners just battlers having a go , there income increases so does the pension
you dont et anthing for free today

I like to raise the rent buy $5.00 per year. 5 Bucks never killed anybody but it helps to keep rents up to date.If a tennant is on a 6 month lease I raise it on the second renewal. If they are on a 12 mth lease I raise it every renewal.But you must be surte you are not too pricy. Generally most investors dont increase when they should. And your realestate manager with always take the soft option and not go for theincrease because it involves effort.You have to tell your manager what to do. IMHO

MJK

Hi all

Mm 2 cents worth.
I think its much better to leave rents where they are for a stable/longterm tennant.Then when they do decide to move on then increase the rental rate to the market value or whatever price you want.

Maybe ask your tennant that you need to increase the rent but in return you will do some improvement to the property. Kill 3 birds with one stone. increase capital value, increase cashflow for banks to see, added depreciation.

Regards

Alex[8D]

I was in a similar situation. I paid the tenant a visit, asked them what they would like. They asked for an airconditioner. I put in an air conditioner & I raised the rent by $20 a week. Both of us are happy.