25% increase in rent

[nioka]

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

Get a job. That should not be too hard. Maybe you should "go west young man."

 

[YELNATS]

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.

Hello all,

I have a near-new 2 br investment unit in Rhodes NSW, for which the first 1 year lease is to expire in October 2007. Currently it is rented at $500/week.

With two 0.25% RBA interest rate increases in Nov 06 and now in Aug 07, my cost of finance on the unit has gone up 7%. Plus there have been corresponding or larger % increases in rates, water, strata fees and strata insurance.

This together with the prospect of further interest rate rises within the next 12 months, makes me think that a minimum 10% rise to $550 is justified on a 1 year renewed lease.

Am I justified and reasonable in my thinking? regards YN

 

[Mousie]

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.

Keep up the great work hangseng, I know 1st-hand how pleasant it can be to have landlords like you.

I have a landlord who's had the unit I'm renting paid off ages ago and is living off the rent who's installed a man taking care of the entire block of units when he 1st lived here 10 years ago as the agent. The agent told me they had only 3 rent increases in the 10 years he's been there after I got an increase late last year of $10/week to $120/week. Been staying here 1.5 years now and keeping the property in great shape and definitely not looking to move anytime soon. Judging from his stories on past tenants, I can say without batting an eyelid I'll definitely be among one of the best tenants he's ever had.

So to all landlords out there, I can assure you that if you treat your tenants properly you'll get in-kind treatment on your property. Definitely helps to have a good agent though, and believe me:

The best real estate agents are not necessarily from established real estate offices, no matter what they may claim.

As the saying goes, look in your own backyard 1st

 

[numbercruncher]

All rents nationwide will be increased 50pc to cover substantial stock exchange losses.

Thankyou.

 

[Kathmandu]

Hello all,


Am I justified and reasonable in my thinking? regards YN

If the market can stand it, absolutely.

Running a business not a charity.

Dave

 

[numbercruncher]

Now imagine if Interest rates surged to 15pc again one day, theres no way that cost could be passed onto tenants .

 

[Kathmandu]

Now imagine if Interest rates surged to 15pc again one day, theres no way that cost could be passed onto tenants .

Depend's on what the market can stand and what your LVR is.

Dave