25% increase in rent

[Ken]

Just a little update.

Received a notice today in the mail that rent was to put up by 25% a month.

We have only been here a short time 12 months. Surely rent has not increased by that much..

They now want over $400 a month for a 3 bedroom town house in oakleigh.

Surely ridiculous.

 

[Pommiegranite]

Just a little update.

Received a notice today in the mail that rent was to put up by 25% a month.

We have only been here a short time 12 months. Surely rent has not increased by that much..

They now want over $400 a month for a 3 bedroom town house in oakleigh.

Surely ridiculous.

I'm expecting a similar letter any day now. Live in Hawthorn, and have been here 10 months. I think things started getting crazy around December last year.

 

[numbercruncher]

You mean per week not per month?


But yes it is ridiculous, its all going to come back and bite the Government on the ****, that 100 has to come from somewhere, your wage wont go up to cover it, so the obvious happens, you spend less on other items, and this happens right across Australia, and eventually has an effect on the dynamics of the whole economy.

The great realestate rort of the 21st Century, what a thing to be remembered for Johnny ...

 

[prawn_86]

i know that if i want to own my own house, or rent in a nice area throughout my life i am going to have to be earning well above average wages.

we are paying over $200 a week for an apartment in north adelaide. its not easy for students to live close to campus anymore.

 

[chops_a_must]

its not easy for students to live close to campus anymore.

It's not feasible for students to study anymore...

 

[kerosam]

hi prawn_86,

a fren who used to study in Uni SA rented a ground floor 2 bedroom unit for $175 along the street opposite archer street... its just behind foodland (is it still there?)... in 1999!!! so maybe rent is still kept on a lid there (?).

not sure about Uni Adel, but Uni SA used to have night security to fetch students home who live 1km around the campus.

 

[Julia]

Just a little update.

Received a notice today in the mail that rent was to put up by 25% a month.

We have only been here a short time 12 months. Surely rent has not increased by that much..

They now want over $400 a month for a 3 bedroom town house in oakleigh.

Surely ridiculous.

Ken, that does seem really unreasonable. If I were you I'd be contacting a Tenants' Advisory Service for their opinion.

 

[trinity]

Just a little update.

Received a notice today in the mail that rent was to put up by 25% a month.

We have only been here a short time 12 months. Surely rent has not increased by that much..

They now want over $400 a month for a 3 bedroom town house in oakleigh.

Surely ridiculous.

hi,

am in the same predicament of sorts. we started out renting 2br unit, old old old unit last May 2007, but very close to shops & transport @ 280/week. after 6 months, this was increased to 300. Being ignorant, I did not lock it in a contract, after 3 months, increased again to 310, and we just received a letter that we will have another increase to 350. we are about 15-20kms north west of sydney.

 

[numbercruncher]

Everyone should go out an buy big camper homes, converted buses etc and just park up where ever , different view every night ......

You could choose affulent suburbs to park up , enjoy there water front views, hell maybe theyll even let you help yourself to there wireless broadband. Encourage your employers to expand there carparks so you can drive your house to work, going on holiday or away for the weekend ? no problem, take your house with you and save on hotel and hire car costs. The benefits are endless, not to mention that if enough people are "doin it" house prices and rental prices will begin to fall.

Australia, continent of mobile homes, gotta love it ...

 

[prawn_86]

hi prawn_86,

a fren who used to study in Uni SA rented a ground floor 2 bedroom unit for $175 along the street opposite archer street... its just behind foodland (is it still there?)... in 1999!!! so maybe rent is still kept on a lid there (?).

not sure about Uni Adel, but Uni SA used to have night security to fetch students home who live 1km around the campus.

yeh the foodland is still there, although its just finished been done up. Maybe rent in North Adel hasnt risen too much then... i havnt really looked at the historical data.

Im not worried about getting home or anything, as i go to UniSA, its a nice walk home, only takes about 20min.

 

[Gordon]

Just to have both sides of the story in this debate i 'rent' (aka cash) off a mate for $60 a week in a southern suburb of perth.Taxi's to the airport (work fifo) costs more.

 

[Sprinter79]

You should be locking in the price of rent in your lease contract.

On a tangent, rent in Karatha is $1800 a fortnight. Cop that!!!!!

 

[It's Snake Pliskin]

It's not feasible for students to study anymore...

No, they want people to be trades people now. They can probably make better money when qualified anyway.

 

[hangseng]

$400 per month is cheap, very very cheap.

I have 2 properties 30kms South of Perth one currently at $285 (up from $270) and soon to be $300 per week.

The other I have just leased for $300 per week up from $260 per week (could have rented 10 if I had them demand was so high). Rent review in 6 mths and I can already say it will be going up in line with increased interest rates, water rates, council rates etc.

$400 per mth , lock it in and quick for as long as possible.

Inner Perth for what you have will set you back 5 times that.

 

[It's Snake Pliskin]

Ken, that does seem really unreasonable. If I were you I'd be contacting a Tenants' Advisory Service for their opinion.

Ken,

From my experience approach the agent and ask to speak to the owner for some rationale on the increase. Basically agents earn more commission from higher rents, so sometimes they issue rent increases without the owners knowing, not that this is the case with your agent.. Also, take it to the residential tribunal. They won't let it happen. You may negotiate a suitable compromise.

If you need help PM me.

 

[It's Snake Pliskin]

Rent review in 6 mths

Rent reviews are a croc.

and I can already say it will be going up in line with increased interest rates, water rates, council rates etc.

Outgoings are the LANDLORD'S responsibility which should not be projected onto the RENT or tenant. It is an expense for that type of investment.

 

[tayser]

25% is a load of shizzle. Challenge it, hammer your landlord and don't rule out the tribunal - that's utterly disgraceful.

 

[numbercruncher]

$400 per month is cheap, very very cheap.

Im certain he made an error and its actually 400 a week.


But Ken yes you should take it further, actually look at it as a moral obligation to your fellow renters in that Suburb, because if enough Landlords raise there rents to $400 then that price will become the average and then all the Realtors in Oakleigh in there quest to spur on the "property boom" will advice other clients to raise there rents ...... I notice on realestate.com.au that most Oakleigh rentals run 250-420.

 

[chops_a_must]

No, they want people to be trades people now. They can probably make better money when qualified anyway.

Yeah, it's this sort of attitude that leads us to having a massive shortage of teachers, nurses and doctors...

When the economy turns, all these tradies are going to be stuffed.

 

[hangseng]

Rent reviews are a croc.



Outgoings are the LANDLORD'S responsibility which should not be projected onto the RENT or tenant. It is an expense for that type of investment.

Partially correct.

You can't ask the tenant to pay outgoings but increases in expenses simply result in proportionate increases in rental. If this was not done then it is a sure fire way to go broke.

Also like any investment or business, property investment is not a charity, it is there to make an ROI. Not all of the costs can ever be attributed to actual rental cost however proportianate increases in line with expenses simply must occur or there would never be any investment in property of any kind.

If you place too higher price on your rental to attempt to recover all costs then 1. You probably will never let the property and 2. Will find yourself in court eventually.

As I said this is a business.