Has your property manager done a rental review?
Hey there,
Let’s have a chat about rental increases and the demand in rental properties in the current market.
Currently in the Eastern Suburbs of Sydney there is a high demand in rental properties, and we have seen rents jumping up 20% or more in some cases.
There has been a lot of market rental reviews and rental increases now.
If you haven’t done so I would recommend getting your rental market review asap before the Tenant Advocate in NSW puts through a cap on the increase that can be given to rental
properties.
Few steps on how to give a good rental increase and keep your good quality tenant.
Cause let’s face it giving a high rental increase and losing a good tenant is not always ideal. As there is other cost associated when a tenant vacates.
- Have a proper rental market review done by your property manager.
Very important to have the right rental review done and not only just scrolling through the advertised properties on the market but also reviewing the market condition in the specific area. As well as properties that have been leased, what month and how long were they on the market.
2. What is a reasonable rental increase?
There is no such thing in the housing industry at the moment to specify what a reasonable increase could be. This would come down to the owner and the tenant. How has the tenant maintained the property throughout the life of the tenancy and did their rent go down significantly below market value in the last two years.
3. How often can a landlord increase the rent and what notice is needed?
Month to month lease agreements - Rent can only be increased every 12-months and landlords / agents need to provide 60 days notice.
Fixed-term tenancy agreements less than 2years - will need to have any increases stated upfront in the lease agreement special conditions.
4. Can a tenant negotiate their rental increase?
If a tenant believes that the rental increase is not fair and not with rental market value, they might put in a vacate notice or send an email negotiating the rental increase.
5. What are some points included in the tenant’s rental increase letter?
- They can send links of other properties that have leased in the same complex or area that shows below the rental increase.
- Tenants will usually bring up outstanding maintenance if they believe the rental increase is unfair.
- Tenants could ask to sign a longer lease if the rental increase is reduced lightly.
- Tenants might request for items to be installed in the property if the rental increase is very high, ie, air condition, flyscreens and ect.
