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self manage, rent increase

Discussion in 'Property Management' started by Elives, 2nd Oct, 2015.

  1. Elives

    Elives Well-Known Member

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    Hi all,

    so my situation is my ip is in the $250-350 weekly rent bracket. and i believe the rent should be raised $15 per week. as i can see many properties close to it currently being advertised higher (also on rp data i can see properties that are being rented for more)

    1.) in the 250-350 weekly rent bracket is asking for a rent increase of $15 a week to steep?

    2.) my other idea was to originally ask for $10 a week increase and then after 6 months depending on market ask for the extra $5? thoughts?

    3.) in QLD do i have to give 30 days notice or 60 days notice for rent increase? it's on a periodic lease.

    4.) if its on a 6 month lease (etc) can you ask for a rent increase?

    that is all.. haha
     
    Last edited: 2nd Oct, 2015
  2. Cinch

    Cinch Well-Known Member

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    Get an appraisal from a few local property managers.
     
  3. Elives

    Elives Well-Known Member

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    i think you've missed the point to my post :), i'm confident on what the market rent is.
     
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  4. Cinch

    Cinch Well-Known Member

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    I did miss it:) I saw the large range 250-350 and assumed you'd want a more accurate value. A 5% increase seems reasonable especially if that's to bump it up to the market value
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    I am not certain about the period of notice but in NSW it's 60 days + postage.

    If they're on a fixed term the rent cannot be increased during the term but you can give apprropriate notice of the increase during the term of the increase effective upon expiry of the lease.
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    If you're not across all the rules perhaps you're not ready to self manage yet? How will you go in more complex situations?
     
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  7. Ed Barton

    Ed Barton Well-Known Member

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    No.

    Go $15 now.

    What's a '3 periodic lease'?
     
  8. Elives

    Elives Well-Known Member

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    "3" was a typo oops. thanks for your input :)
     
  9. Elives

    Elives Well-Known Member

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    • i bought it with tenants the vendor was self managing it
    • tenants have been there for 7+ years
    • i did not feel like paying 8-11%+ for management
     
  10. Elives

    Elives Well-Known Member

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    i think it's 60 days, was to lazy to check RTA website thought i'd ask here instead.
     
  11. Ed Barton

    Ed Barton Well-Known Member

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    OK. I'm sure you're as capable of checking the RTA site as anyone so I'll leave it up to you to find the appropriate notice period.
     
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  12. Ed Barton

    Ed Barton Well-Known Member

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    Very disrespectful. You can't be bothered taking a few minutes to look up something you're fairly confident you could find yourself and instead expect others to do it for you.

    Some free advice it's one days notice.
     
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  13. Fargo

    Fargo Well-Known Member

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    Get clued up on the regulations, Then figure out how to negotiate. I would ask for a $20 increase for a 12 month lease if they baulk at that try $15, or they may suggest a price they are willing to pay if they don't accept that and depending on the response offer it to them for a 6 month lease at 10 or $5 more and a possible review after that. I wouldn't bother with getting an appraisal from a PM, I found some don't have clue about what the market will bare or what and where can command a premium, and it wont change what your tenant is prepared to pay.
     
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  14. Elives

    Elives Well-Known Member

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    disrespectful? i had other questions to ask so i thought i'd ask them all in one hit. total of 4. i do not expect anyone to look anything up
    i did not mean to upset you...
     
  15. The Y-man

    The Y-man Moderator Staff Member

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  16. Ed Barton

    Ed Barton Well-Known Member

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    I don't think anyone here has an issue with giving their opinion or advising people of the rules who are genuinely ignorant of where to look for those rules.

    But when a post essentially says 'I know where to find the rules and I'm just too lazy to look' then perhaps posters become unwilling to help. That describes you.
     
  17. HUGH72

    HUGH72 Well-Known Member

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    I don't think you mentioned where the property is? Some rental markets are fairly weak at the moment but if you have bought a property rented under market value then increasing the rent makes sense.
    The lower end of the market is more price sensitive.
    Regarding self managing, you need to be across the Residental Tenancy Act because your tenants probably will be and you can get yourself in trouble.
     
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  18. Elives

    Elives Well-Known Member

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    Hi HUGH,

    i didn't add the location for privacy reasons but with the self managing. i'm not looking to self manage my ips i only did this one because the tenants have been in there for 7+ years so it felt like a safe bet. if i had any issues / if they left i'd get a manager in. they always pay rent on time.
     
  19. wylie

    wylie Moderator Staff Member

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    I don't think any of us can pick who you are if you tell us the suburb :p.

    In the same suburb (Balmoral/Morningside) where we dropped over $100 in June to get a tenant, I've heard of someone who dropped even more. The agent who found us the tenant (who is fantastic), told me a couple of weeks ago that nothing has changed.

    On the other hand, friends in Coorparoo got a $15 per week increase when they changed tenants. It still didn't rent in a flash, but they didn't have to drop. So... it could be area-specific, and if you fess up to where it is, you might find someone who knows what is happening local to your IP.
     
  20. Kael

    Kael Well-Known Member

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    Gday Elives! :)

    While I wouldn't self-manage, I can understand why you want to for this property. At end of the day, it's your choice but I'd look at all the pros and cons of hiring a Property Manager. Anyway, onto your situation.

    If you know that the market rent is an extra $15 a week for your property, then you should be able to increase it by that much and I'd do that if I was you. If your tenant doesn't want to pay the extra $15 a week, then when they go to leave, they'll either find that similar properties are priced the same (and there is no point in leaving and they'll probably just pay the extra $15 a week) or they'll downsize to a different type of property or move out of the area. Either way, you know that the market rent is $15 extra a week and you know you should be able to find a new tenant easily enough, right?

    As for is $15 a week increase too steep, I don't think so. A $15 a week increase is about 5% (based on $300 weekly rent) and if the market has increased by that much, then you're fine. If the market has increased by 5% each year, you could increase the rent every 6 months if it was worth it. Out of curiosity, have you increased the rent at all over the past year or so?