Hello all,
Long time member first time poster.
I'm just looking for some of your opinions on my current situation.
Have had tenenats in for nearly 12 months at $ 365/week.
Time to renew lease I instructed the property manager to increase to $ 380/week stating about the interest rises last year and now and possibly another one soon that I feel a rise of under 5% is fair.
Tenant came back and told agent he has been approved for a home loan and only wants a rolling month to month lease and offered to pay $370/week as they will be looking for a house.Do you think I should take the offer from tennant or say since it is only a month to month I need $ 380.00 otherwise I will look for new tenants.
Alternativly shoudl I ask the tennat direct if they want to buy the house, as I'm prepared to sell. Has anyone had experience with this and did you go through the agent or direct to the tennant
Any advice/opinion appreciated.
Hi Clovies, my personal opinion if it was me, i would not think any tenant was in a position in the current market to be negotiating with you on rent / terms. If your rise is reasonable (i don't know where it's located so hard to tell) but i would think you should look out for yourself.
I had a situation with a tenant recently where the boyfriend (on the lease also) skipped out and the woman neglected to tell us and fell 14 days behind in rent. Well investing shouldn't be personal and i could of had a new tenant within 12hrs in the current market where it's located. I gave her till 5pm the next day to come up with the rent or face being issued a notice to vacate. Well the rent was paid and is now up to date. It is not my place as a landlord to listen to stories of why the rent can't / isn't being paid. I'm sure someone out there will not agree with this hard approach, but business is business.
Your property manager should be acting for you, not negotiating on the tenants behalf. You need to be firm with the property manager, did he/she recommend an increase (they should be if it is under the median for the area).
good luck with it
thanks beanie,
I'm in the upper range of the price bracket for the rent (ave. $ 275.00-$320.00), but at the same time it is a good property well set up as it used to be my PPOR(I guess this might be bias, but its true).
It was the agent who suggested to the tennat the rent would rise and then told us that a $10-$15 rise would be appropriate.
I would stick to your guns on this one, tell the tennant that you will only keep them on month to month if they pay the $380.00 if that is what the property is really worth, they are not going to want to move twice.
But on that an Interest rate rise is not a valid reason to raise the rent, as investors interest rates is one of our risk factors and a cost we must absorb, after all would you lower your rent if interest rates dropped 2%.
Rental increases come about because of a mix of increased housing demand, Inflation or scarcity of a particle property type,
Hello clovie
If you are looking to sell the house to your tenants why on earth would you go through your property manager and pay commission.
Cheers
ElkaHere Here beaniemonster!
"It is not my place as a landlord to listen to stories of why the rent can't / isn't being paid. I'm sure someone out there will not agree with this hard approach, but business is business."Don't put up with it.
I'm also sick of hearing a new "Once upon a Time" story from some of my tenants, in a different marketplace it may be a different story, but right now………..Hutch
elkam
Just wondering what part of my post did you read?
"Alternativly shoudl I ask the tennat direct if they want to buy the house, as I'm prepared to sell. Has anyone had experience with this and did you go through the agent or direct to the tennant"
Update:
Have told the PM to increase rent to 380 if they are going to do a rolling lease.
I will not be pushed around by this tentant, Yes its a harsh statement, but theres high demand right now so i think i can afford to increase plus this area is moving quiet well.Cheers
Clovclovies wrote:Alternativly shoudl I ask the tennat direct if they want to buy the house, as I'm prepared to sell. Has anyone had experience with this and did you go through the agent or direct to the tennantHello Clovies
Now I'm a bit confused. My answer was to the part quoted here.
If you have a potential buyer why would you go through the agent. He will expect a commission if he does the negotiating of the sale on your behalf. Am I wrong?
Cheers
Elka
; "Dizzy"){kind=small}
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