Increasing rent - self managing

I am self-managing my rental. I've kept the rent the same for 2.5 years. I would like to know your tips for increasing the rent. I feel nervous about doing so, as they are good tenants and I don't want to lose them. But I feel I could get more for the rent now based on recent rental advertisements.

Thank you.

 

Thanks Wylie. That's a good tip.

Realistically looking at what else is out there, I should be increasing by about $30-40 a week, but I feel that is too much of an increase: I want them to stay after all. I think I'll go with $20 to be on the safer side.

Should I send an email and a text message (this is how we normally communicate)?

Anything else I should think about? Do I state a reason for the increase? If so, what's the best "reason" to give?

Thanks

 

Always a good idea to increase rents yearly, even if it is only $5 a week, that way it wont come as a shock - there are form letters that should be sent. Others currently working as PM's will be able to advise further.

 

I've found the Rent Increase form from the consumer affairs site and will use that.

Do landlords have opinions on what's worked best for them? Increasing rents yearly or ?

 

By all means consider rental amount each lease renewal. Sometimes an increase will be justified, but at other times there may be heaps of cheaper properties available and an unwise increase may result in a good tenant leaving.

It's all a question of supply and demand. Clearly it is wise to be more conservative with a good tenant you hope will renew. A $10 a week increase is $520 a year, easily wiped out by 7-10 days vacancy between tenants, not including any PM charges for finding a new tenant.
Marg

 

No. Must be in writing (mail) & give appropriate notice - the fair trading website has form letters which you can use. Allow an additional 4 days for postage or 0 if hand delivered.

 

10 a week increase is $520 a year, easily wiped out by 7-10 days double rent, not including any cleaning and moving charges.

 

Not to mention the time it takes showing prospective tenants, writing new leases, exit report, preparing condition report.

IP is probably $30 under MV at the moment! Once I adjust for tax it isn't worth the hassle for $1000 p/a in my pocket.

 

Isn't this just wrong on principle though? If your property is worth that rent, shouldn't you continue to increase it?

Having said that if my landlord did it gradually and gave a good reason each time (comparables, council and other costs, inflation? Maintenance, rate hikes) and was highly responsive to my issues I would accept the increases. If he did a major 25-30/wk in one fell swoop I would very likely move as either I won't be able to afford it or I might get a bit disgruntled at the percieved "unfairness" as I wouldn't have been used to any rises in the past