Rent Increases

Discussion in 'Property Management' started by Daz7, 8th Nov, 2015.

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  1. Scott No Mates

    Scott No Mates Well-Known Member

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    @Daz7 - even though you're well below market, pushing for a major increase will result in any of the following outcomes:
    1. Acceptance
    2. Termination on applicable Notice
    3. Application to the tribunal for harsh treatment
    4. Negotiations for lower increase
    The tenant termination will result in reletting costs, loss of rent/vacancy and possibly some works. A 2 weeks vacancy and 2 week letting fee (@ $400/wk) will take 23 weeks to recoup plus the new tenant risk.

    Consider how much you can safely raise the rent without losing the tenant (do it in a few bites).
     
  2. HUGH72

    HUGH72 Well-Known Member

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    Yes I do, have a look at listings on RE.com there's lots. Lots of NRAS stuff to at 20% below market rent as well.
    Small but regular increases there would be my suggestion as its price sensitive but tenants are unlikely to move for regular $5-10 PW increases.
     
  3. Ian Macleod

    Ian Macleod Active Member

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    NSW
    If the fixed term period of your lease has ended (as you say they have no lease) and the tenants are on a continuing (periodic) tenancy the landlord may increase the rent by giving you at least 60 days notice in writing before the date the increased rent becomes payable. The notice must:
    • specify the proposed new amount of rent (not the amount of the increase) and
    • specify the date from which the increased rent is payable and
    • be signed, dated and properly addressed

      Why not let them know that you want to bring the rent up to a reasonable market rent over time so they can get used to the idea of 6 monthly increases. It might also be in the interests of both parties to put a new tenancy agreement in place that includes provisions to increase the rent and how it will be done.
    Rent_increases