hi all, i just need some quick advice.
i have an ip in darwin renting for 265 a week. average for that block of units is 270 a week.
i went up to darwin several weeks ago, and asked him about increasing rent by 10 dollars, and there was no way he wanted to do it. came up with plenty of plausable excuses. after talking to a few people here, it seemed that he was renting the place out to his mates kids or something (possible though i cant confirm it)
there are 3 guys on the lease, so a 3 dollar increase each a week is not that much for a fully furnished unit.
i just sent off a fax stating that the rent was to be increased by 10 dollars a week come september (givning tennants plenty of time to decide). in return i would put in new security screens valued at 700 dollars that they had asked for. my other reason was due to cpi and two interest rate rises in the last year.
how do i convince him to up the rent? or do i believe him when he says its already at market value?
not really sure what to do next. do i stick to my guns and if he doesnt do it just go to another agent?
any advice would be great
cheers
shaunLead, Follow or get out of the bloody way
Its the market that determines rent.
You need to get independent evidence to present to the property manager. Its a little difficult being far away but you need to see what rent other properties with your features and in your position go for.
Maybe you can gather this from realestate.com.au
Thats how i present my rent increases to a property manager and they have no come back.
Its upto you, but I would prefer to keep a regular paying tenant at $5 below market than incurr the hassles of a tenant leaving just for a few extra bucks a month.
If you dont mind the possibility of getting a new tenant, go for it. If you are comfortable that a $10 increase is the market rent and the tenants wont get a better deal elsewhere, go for it.
thanks yack, i was just thinking i should confirm the increase with some figures. i will go to the bodycorp mob and find out who property manages the other units and ring them.
as you said, do i keep the rent 5 – 10 dollars below valuation due to good tennants, or is the 10 dollars justified.
cheers mate
shaunLead, Follow or get out of the bloody way
Hi Shaunwalker
It’s a free country. You can charge what you like for the rent, the tenant has choices too, object, pay up, or leave. If you want to increase the rent, instruct the PM to increase the rent, end of story. If he refuses to follow reasonable instructions, and let’s face it, $5 is reasonable, then burn him. Fax the PM and CC the licencee offering them an ultimatum, comply or lose the management. It’s no good having a PM who refuses to follow reasonable instructions.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
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thanks for your replies, i am trying to keep the tennants if possible.
just rang PM then. and have managed to solve the problem. he will go to the tennnants and tell them that rent will go up 10 dollars a week in september. in return, once a lease is signed, they get new security screens and the place will be repainted and new curtains put in.
i’ve decided that after thinking about what steve said at his seminar, i am selling off an Ip now (my choice) and will renovate Ip in darwin early next year with some of the profits then sell the darwin property during the peak season.
giving me the velocity of cash for more investments.
i just didnt want to barge ahead, demanding rent increases without add valueing, just trying to produce a win/win situation and make some money from doing things differently
thanks all
shaunLead, Follow or get out of the bloody way
The Darwin rental market is rather sensitive. At the end of the day you own the property and pay the property manager’s wages, don’t let them dictate terms to you. I’d dispatch whoever it is that’s managing your properties and get someone good on. I’ve researched and reckon I’ve isolated the best manager in Darwin. Will pass details on if you want.
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