- PropertyAngelMember@propertyangelJoin Date: 2005Post Count: 27
Hey Property Lovers!
Just thought I’d post a place for “Raising Rent Tips” to be listened too… seeing as mr Jack doesnt seem to be enjoying the fountain of Knowledge you have all been keen to share. SO bring it all to me folks! Ill absorbe, worship and treasure your words of wisdom and knowledge!
So Come One Come All Share with me your creative approach to rent and you can get the most out of your properties via working with Tenants in order to keep them and the landord happy!!!!
And know this.. anything posted here is much appreaciated!
Think big and success is yours always!RentMasterMember@rentmasterJoin Date: 2003Post Count: 85
Here are a few rent increase tips for starters.
– Furnish it
– Add another bedroom
– Subdivide the section and add another new house.
– Add a granny flat
– A suggestion from someone else is to offer the first weeks rent free, in exchange for an additional $10 per week. The tenant saves on some up-front costs, but looses long term.
– Just paint it and make it look better than it already is.
– Dont rent to friends or relatives – you always tend to charge them less.
– Add a dishwasher and charge extra rent for it.
– Allow pets and increase the rent for the priviledge.
Thats all I can think of for now, but I am sure there are heaps more.
Software for LandlordsPropertyAngelMember@propertyangelJoin Date: 2005Post Count: 27
Thats all?? [blink]
Oh Man! I could pick your creative mind all day long!!! Keep the idea’s comming Oh Master of Rent and landord creativity!! *worships*
Thankyou so much!!!!!
No Such thing as CAN’T!leaMember@leaJoin Date: 2004Post Count: 26
Hmmm… I’m still learning here, but these are some things I’ve done to get the rental incomes up in the past:
— built a pergola/outdoor entertaining area
— upgraded air conditioning unit
— replaced old carpets
— installed a dishwasher
— replaced tired old blinds
— re-planted easy-care conifers around perimeters where previously was lawns to fence lines
— repainted walls
— installed security doors
I’m always happy to hear other tips from other people! More rental income can only be a good thing!
LeaAlistair PerryParticipant@aperryJoin Date: 2004Post Count: 891
There are a number of people I have heard of who rent by the room, and one does short term rentals to backpackers. This increases risk (vacancies, damage etc.) but also can increase the returns.AdministratorKeymaster@piadminJoin Date: 2013Post Count: 3,225
I am on a Body Corporate committe and we are currently seeking feedback from tenants about the idea of installing cable (Foxtel / Broadband internet) into the block.
Initial indications suggest that the costs are not that high (all financials currently being confirmed) but if this is the case, then this potentially is another idea worth considering that could drive a higher rental Yield.
The idea has much more merit these days given the downward trends in the monthly access prices and specials that you see for Foxtel & Broadband etc.
Cheers,The DIY Dog WashMember@the-diy-dog-washJoin Date: 2003Post Count: 696
Find a niche to differenciate you from the rest ie: in some regional areas they bring outside teachers and medical staff who are used to higher rents and when compared to the areas average condition a rental property that is very clean with a good basic decor are willing to pay more for the better property. Positioning yourself at the top of the standard rather than the average lets you command a better tenant and rent.
Leigh KDDMember@ddJoin Date: 2004Post Count: 508
This months API has 50 top tips for raising rental yields so worth a visit. Personally love the quotes on 4 renos from one couple.
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!LuciMember@luciJoin Date: 2005Post Count: 114
You can value-add by offering them the use of something they want. I.e include a tv if they pay an extra $10 a week.
If it is a furnished property, you can agree that if they sign a long lease (5 years) they will own the furniture at the end of the lease. (Seeing you will depreciate most items over a 5 year period, on paper this will not cost you anything. For the security of 5 years, it may be worth it).
Offer to get a gardner in once a month to maintain the gardens/cut grass for an additional $7 a week (gardening is a resposibility of the tenant that they generally loath – young people rarely own a lawn mower and will have to hire one at their own expense anyway).kay henryMember@kay-henryJoin Date: 2003Post Count: 2,737
As a tenant, I wouldn’t fall for any oof the aobve stuff really- but would fall for the old “pizza per month of you pay rent on time” thing [biggrin]
Tenants aren’t fools- they are not going to think a dishwasher is worth paying extra rent! New apartments have dishwashers, no lawn etc. and tenants usually come equipped with their own stuff- so no plasma tv thanks, dear landlord
kay henryachieverParticipant@achieverJoin Date: 2004Post Count: 23
This months API magazine has got the lot – 50 ideas. Worthwhile read. Anything to increase rent is wonderful.
Best of Luck
AchieverrumbizMember@rumbizJoin Date: 2004Post Count: 16
the almighty remote controlled garage door….i could sit for hours making it go up and down….but then im easily entertained
“love the deal – like the property”DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150
I agree with Kay – tenants are way shrewder and smarter than LL’s give them credit for, and frankly most of those ‘tips’ are very Mickey Mouse, and hence will fail miserably. When discussing initially, the residential tenant will simply want all of that and more thrown in for the normal “what’s the lowest rent you’ll accept”….
No – my favourite tip for raising the rent on residential tenants goes something like this in a standard letter format ;
The rent shall be raised by $ xx per week. If you are unwilling or unable to afford the increased rent you have xx days in which to vacate the property. The increased rent shall commence on xx/xx/xx.”
No mucking around, no gimmicks….and if they move on, no tenant and no rent !!!
Which brings me full circle yet again, as with most of my posts – playing these Mickey Mouse rent games with flighty “I’m not paying more rent and give me everything for free…and right now” residential tenants is a mugs game….best left to Landlords who have oodles of time, money and patience to play them.
We don’t play those games any more and that has made all the difference.
“No point having a cake if you can’t eat it.”ruminMember@ruminJoin Date: 2005Post Count: 25
Hi,could someone pleeease put a bit of an idea of what was in ‘API magazine has got the lot – 50 ideas’ article…I’m overseas and can’t get a copy (or it’d cost an arm &leg)..
was the article THAT good???
RuthflashMember@flashJoin Date: 2003Post Count: 140
How much could you charge in rent for installing a remote controlled garage.
Just recently I found out they cost approx $500.I’d imagine you could ask for an extra $5 per week
What do you reckon?
Will have to take it up with PM and find out.Andrew BeechParticipant@andrew-beechJoin Date: 2005Post Count: 14
I once enjoyed the experience of attending a Mr Landlord seminar – I think he tours NZ every year or so. One of his main pinciples with renting is the McDonalds (yes the fast food joint) method …. basically whether or not your tenants want fries with that. Upsell to them.
Ask your tenants if they would be interested in having some additional items installed i.e. dishwasher, TV, stereo etc of course for a slight increase in rent.
Make sure the increase in rent is enough to pay for the item within 1 year …. and to really make it worth the tenants while you let them know that if they pay their rent on time that at the end of 3 years they can keep the item! This provides an incentive for the tenants to keep renting with you and pay their rent on time. If all goes well this means less vacancies and less rent arrears.
He has a website which from memory is http://www.mrlandlord.com as theres alot of other great rental management tips that he has.paul_ahbMember@paul_ahbJoin Date: 2005Post Count: 1
how about just raising the rent each year by a nominal amount, $5 or $10. That is what we have been doing for each of our rentals.Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43
So far most of the rental increase ideas have been based on the assumption the tenant is already in the premesis. I hope more discussion goes into ideas for how to increase rent during vacancies. As for those who think creative value-adding and subsequent rental increases are untenable or immoral, I disagree. The market rent for your property is the rent that people are willing to pay, not what your neighbour is paying with the same structurally designed house. However, I do agree that tenants are not very gullable and need to be assessed, and given a very plausible reason if you are to justify increasing rent at the end of their contracts. (If you have a tenant who you believe is on the brink of deserting, don’t raise or only increase a little; yet if your tenant treats the dwelling as if they owned the place and truly love it, then they would naturally be more amenable to your creative ideas and wouldn’t put an objection or threaten vacancy.)
This leads to my belief that it is best to make as many justifiable value-adds as possible during the course of a vacancy. Why sit crying for 4 weeks with no rent when you can be smiling at the future increased yield of your property if you add a carport for $5000 @ a capitalization rate of 5% which will raise your overall property value by $25,000. The opportunities are endless. Through experimentation, discover whether tenants are readily embracing your value adds and rental increases, and if not, amend them until you find your MO. I recommend you read the Dolf De Roos book: *101 ways to massively increase the value of your property* – for little or no money