25% increase in rent

[hangseng]

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.

I have worked on both sides of the fence for over 35 years. That comment is unfounded and unhelpful, in fact derogatory and disrespectful toward trades people of all disciplines.

I began working life as a "tradie" now doing very well indeed from a completely unaligned discipline brought about initially from my trade background.

Ralf Sarich was also the same trade as myself.

"stuffed" think again there are many resourceful, wealthy and intelligent people out there that have never been to uni. I have now but did I need to? as it turns out probably not.

"tradies" contribute purposefully to society and don't deserve that comment.

Why do they earn so much? Well try working 7x12 (84hrs a week) for 6 weeks on and 1 week off for over 10 years and then tell me they don't deserve it! That was my (2nd) start.

 

[chops_a_must]

I have worked on both sides of the fence for over 35 years. That comment is unfounded and unhelpful, in fact derogatory and disrespectful toward trades people of all disciplines.

How?

I wasn't making a judgement call about their work or education/ intelligence level. I was simply making a comment that was implying that the current economic boom is fuelling demand on the tradies at the expense of the essential services.

But this comment,

""tradies" contribute purposefully to society and don't deserve that comment"

implies that people working in the jobs I mentioned, i.e. teachers, nurses and doctors, don't.

 

[Smurf1976]

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

Which still means beign in a difficult financial situation whilst studying.

 

[Smurf1976]

How?

I wasn't making a judgement call about their work or education/ intelligence level. I was simply making a comment that was implying that the current economic boom is fuelling demand on the tradies at the expense of the essential services.

But this comment,

""tradies" contribute purposefully to society and don't deserve that comment"

implies that people working in the jobs I mentioned, i.e. teachers, nurses and doctors, don't.

Personally I would put the tradies, doctors, nurses, teachers, police and so on all in the same group. They ALL provide essential services unless you consider running water, power and having a roof over your head as non-essential.

If you look at the education level of the population as a whole then you'll find that tradies are in fact in the upper half of society. A great many Australians don't have a post-school qualification in anything.

Also worth considering that the best training in modern medicine is immediately rendered largely useless by a tripped circuit breaker. And I've lost count of the number of times I've heard of a school being closed due to faulty plumbing.

 

[It's Snake Pliskin]

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.

No I think you'll find yourself with a vacant property or in the residential tribunal which isn't a court.

Supply and demand determines what rental a tenant will pay not what costs the owner has - certainly not interest rates.

You are right in saying property investment is not a charity, but it doesn't validate what you say. At the end of the day if no one is willing to pay it is going to be vacant regardless of costs. If the demand is there then crank up prices when it is vacant not when a tenant LIVES there. The latter is inconsiderate and greedy.

 

[Kathmandu]

If it can stand a 25% increase it can stand a 25% increase.

At best rent tribunals will look for similar property in the area, and if that is the current rent well guess what?

Of course if it is to much, market will dictate and it will sit vacant.

Our holding costs always get passed onto the tennant, if the market can stand it.

Dave

 

[hangseng]

No I think you'll find yourself with a vacant property or in the residential tribunal which isn't a court.

Supply and demand determines what rental a tenant will pay not what costs the owner has - certainly not interest rates.

You are right in saying property investment is not a charity, but it doesn't validate what you say. At the end of the day if no one is willing to pay it is going to be vacant regardless of costs. If the demand is there then crank up prices when it is vacant not when a tenant LIVES there. The latter is inconsiderate and greedy.

Ummmm...Snake

We are agreeing here.

As I said if you place too high a rent "you will not let the property". The market as we both have stated sets the price and people like me place a price we are willing to let the property for and what the market will bear.

And yes supply and demand is the biggest factor, especially at present. Huge demand and very limited supply. Having said that, I take care in who I let to now and I am actually willing to take a slightly lower rental or to hold rental increases for a valued long term tenant. Eventually though rents will still be increased if ROI is to be maintained. One of my current tenants I have only increased the rent $15 p/wk after 12 mths of relatively low rental in comparison with the market trend, best tenants you could wish for.

Protecting my good tenants is the best strategy, filtering the rest I don't hesitate (like my last one, worst tenant you could have). The new tenant seems great and is long term at this point, time will tell how I manage this one. All you tenants reading this, I am not on my own with this philosophy. If you are a good tenant it is most likely you will not be squeezed financially or otherwise. Also yes there are the landlords who just greed driven, the sought of person I choose to avoid associating with.

 

[Kathmandu]

We don't have a problem jacking rent while tenants are there, but only when a lease is due for renewal.

If we have good tenant's we offer a 12 mth lease after the initial 6 mth stint and of course jack the rent on the new lease.

ALL our tenant's are good, an in effect are in partnership with us (we supply a house, they pay holding costs, we get access to cap growth)

Recognizing this, we have property which can achieve $10 more / week in rent, but it only need's to be vacant for 1 week's + re-letting fee and theres the difference.

Rather have it tenanted for 52 weeks to a good one.

All our property being cash flow neutral helps as well, next increase cash flow positive.

Dave

 

[Flying Fish]

We don't have a problem jacking rent while tenants are there, but only when a lease is due for renewal.

If we have good tenant's we offer a 12 mth lease after the initial 6 mth stint and of course jack the rent on the new lease.

ALL our tenant's are good, an in effect are in partnership with us (we supply a house, they pay holding costs, we get access to cap growth)

Recognizing this, we have property which can achieve $10 more / week in rent, but it only need's to be vacant for 1 week's + re-letting fee and theres the difference.

Rather have it tenanted for 52 weeks to a good one.

All our property being cash flow neutral helps as well, next increase cash flow positive.

Dave

This cash flow thing has me baffled. I assume you mean that you have paid enough off on the place and use the rental as a source of income? why else would one want a property other than to reduce ones tax.

Are you a full time land lord? Thanks

 

[deftfear]

I think what kathmandu means is that the rental income covers the interest, rates, maintenance expenses etc so that he isn't losing any money out of his pocket. In turn he receives the benefit of getting the potential capital gains at limited cost to himself.

 

[Flying Fish]

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 ...

Um I think there are council regulations. You would have to keep on the move, better off buying a yacht lol

 

[toothfairy]

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 can see everyone arguing about this but we don't hear from Ken anymore, where are you? Have you moved out?
Actually Ken has not mentioned whether the lease has ended or not, or is there a lease from the start. He may (most likely) have made a mistake about $400/month which should be $400/week. He may even have made mistake about the 25% rent increase.
Back to my point, if there was no lease or lease expired, landlord can increase it 100% if he/she likes, it may not be rented out that's all, can't take him to court or tribunal. You can definitely LEAVE.
On the other hand, the landlord cannot BEG you (or force you) to stay by reducing the rent 25% and say you are unreasonable if you leave. It is a free trading world! Plenty of other "market price" places to rent.
Moving is a hassle for tenant, it is also a hassle for landlord to find a new tenant. You think he will increase the rent to some unreasonable level just for fun? I doubt it.

 

[Kathmandu]

I think what kathmandu means is that the rental income covers the interest, rates, maintenance expenses etc so that he isn't losing any money out of his pocket. In turn he receives the benefit of getting the potential capital gains at limited cost to himself.

Thanks for that mate, that is exactly how it is.

Dave

 

[Flying Fish]

I am on dole. I get rent assistance. I get by. Now I can not afford rent. Whats haoppens?

 

[Ken]

Ggday,

Sorry forgot I posted this. The rent is up to $400 a week. So from $1200 a month to $1600.

I think we will be moving out, no possible way is $400 a week affordable, better off buying a house in an outer suburb 30-40 k's from the CBD and paying a mortgage.

I think i might be lucky enough to sneak into my grandma's house in Murrumbeena. So I could be lucky there.

I think my mum is looking to move to Pakenham now.

I work in the city so oakleigh was convient.

Rents are increasing, wages aren't.

I did read that melbourne will be increasing it population even more over the next 5 years.

But where is the housing coming from?? Inner city suburbs are now out of reach of new home buyers, and its only going to get worse with more immigration.

Does anyone want to start up a new city with me???

In between Perth and Darwin somewhere.... along the coast...there is not much there, surely could sort something out.

You listening Mr. Packer??

 

[numbercruncher]

I am on dole. I get rent assistance. I get by. Now I can not afford rent. Whats haoppens?

Buy a camper home, park outside John Howards house, the rest will fall into place

 

[Julia]

I am on dole. I get rent assistance. I get by. Now I can not afford rent. Whats haoppens?

Flying Fish. I have sent you a PM.

Julia

 

[niknah]

$400 for 3 bedrooms is not too bad, compared to Sydney.
I'm renting my apartments out for $380-$350 and they're only 1 bedrooms.

Increased my apartment's rent 6% this year
Tried a 13% increase but no takers. It's just a supply and demand thing, if the place is vacant the rent will go down. Take a look at the other properties in your area and see what they rent for. If they're lower show them to your landlord so they know they'll have a vacant property at that price.
My other property's rent increased 18% this year.

 

[moses]

I am buying a near new 4 bed executive style investment home in Dubbo NSW for $330k and went to the estate agent looking for tenants. They suggested the market rent would be about $340-$350 pw. I said "ask $390 and see what happens" and a minute later after the first phone call he had a tenant who jumped at the offer.

Get used to it. Rents are going up and fast.

 

[Lucky]

I am on dole. I get rent assistance. I get by. Now I can not afford rent. Whats haoppens?

could be time to get employment