25% increase in rent

Flying Fish said:

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

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

moses said:

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.

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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

hangseng said:

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.

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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

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

Thankyou.

YELNATS said:

Hello all,


Am I justified and reasonable in my thinking? regards YN

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If the market can stand it, absolutely.

Running a business not a charity.

Dave

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

numbercruncher said:

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

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

Dave