I know this has been asked by numerous people and I still find it hard to decide. I have a 1/1/1 with study unit in Liverpool. It is currently being rented at $350/weekly, the tenants and my previous PM negotiated it from $360. Now the 6month lease is almost up. The tenants requested for a fly screen, which I agreed to, assuming they’ll be staying longer however nothing’s in writing yet. Now, from my initial decision I’ve been planing to put back the rent to $360, now the comparable rent shows units on the same building, same layout etc has rented out on the same month my unit was leased, we’re $350-380. Currently, when I asked her to check out the market, she showed me same unit layout, but few years older than mine are being advertised for $370-$385 (some doesn’t have study, but in high rise with pool amenities, etc). My PM advised me to increase the rent by $10-$20. I’m thinking of going by $10 but then with the comparables showing should I aim for $15 and also I agreed onto a installation of flyscreen(which I read in some states is a necessity). However, I think an additional $15 rent increase is too much, or is it not? Kindly enlighten me. Thank you!
I'd look to locking the tenant into another/longer lease first, then look to increase the rent later. What's it going to cost you in advertising and re-letting fee's when the tenant leaves ?
If it's market rents, he's got to pay the same wherever he goes. The only reason he'd have to leave is if he was planning on doing it anyway. Remember, it's costly and inconvenient to move.
This year 2 of my tennants left because it suited them one broke a lease. They leave when it suits them. I also needed to increase rent a lot to get it back to being close to market rates. New tennants cost me money. So I think good tennants in place are worth a small discount on market rates maybe 5% max. I advertised mine mid range to similar properties in the area. But cheaper rent and adding things to the property don't make them stay but YMMV
With borders soon open to mgrants and temp arrivals etc the pressure on rents may push it higher. I would question if its better to not put the rent up yet for $10 and hold off and in 6months it could be $50+.
