Newcastle rental market

Hi there, just wondering on peoples opinions on the rental market in Newcastle. I have owned a unit in waratah since it was built in 2013. I've had a few tenants in that time but rent has been a constant at $390 to $400 per week.

My property manager called up last week and recommended a $5 to $10 per week increase. I asked for $10 (to $410).

Agent came back and said tenant will move out if rent goes up as they can't afford it.

The agent said if the tenant moved out she would suggest advertising at $430 per week.

Have rent prices moved in Newcastle to keep up with property prices?

The tenant is looking after the property and paying rent on time, but if it is $30 under the market then I'd be willing to find a new tenant.

 

You need to weigh up:

$30/wk increase = $1500/yr but will cost you 1-2 weeks @ $430+gst for letting fee and 1-?? weeks vacant. Plus any maintenance identified.

Vs:

$5/wk increase = $250-500/yr, no letting fee or vacancy risk.

Will the tenant really leave for $5-10?

 

Yep, i was after a local opinion on if the rent market had moved in the last few months. I would keep the tenant at the current rent if it was likely to sit vacant for a few weeks or I would only get $10 more.

 

Rental market has only just started to improve, properties havent risen with prices. It must be a fairly decent unit as I know of 3 bedroom houses that are only get $450 per week.

 

Dont get greedy stick to your good tenant

 

Waratah isnt inner city going to be units galore in a few years.

 

Thanks for your posts. I've decided to leave the rent unchanged and will review again in 12 months.