Help and opinion needed!
I acquired a -ve geared IP 3 yrs ago. I have kept the IP in a tiptop condition, I have had the place upgraded and the exterior painted. I have not lost a week rent over this period except the initial 3 weeks after settlement. I even bought the tenant a X’mas hamper during festive seasons. The tenant are great and appreciative of what I have done and have indicated that they would like to stay at the place as long as possible. Rent was alway on time but sometime the water usage are slow to come.
I am just about to enter another 12 month lease and the PM is advising not to increase the rent.
I would like to keep the tenant but I would also appreciate the additional $ the ease the pain of interest repayment. What is your thought on the this any suggestion will be greatly appreciated.
[worried]Hi flyer
i think you should do some investigating into the market rent of your home. if similiar sproperties are renting for the same as your home, if you put the rent up the tenant leaves and you end up with a vacant home that others will not rent because it is too expensive. However if discover you are 30pw below the average for your type of property why not put it up $15, the tenant will still be rewarded witrh lower than market rent for there part of the deal in being a good tenant and you get more $$$.
Did you ask the PM why he/she wouldn’t put up the rent ? It might be a friend of theirs who is the tenant ? I once had a PM who put her son into a home for $10 less than the rate we had agreed on.so you need to do some homework i feel.
all the best
westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Thanks westan. May be I have to do some research on the rental market at the area!
The property is head lease to a government department and sublease to its clients.
I do not think the PM is in any way related to the tenant!Hi there High Flyer. Westan summed this one up nicely. I believe if the rents in the area where your I/P is are renting out marginally higher than your one (say $5-10), it may not be worth possibly losing your tenant by increasing the rent, only to find you might have to charge the same rent to attract a new tenant. Obviously, if rents are much higher in your area, then go ahead and discuss it with your P/M. Hope this helps in some way.
Regards
MartyUnfortunately for us investors, the rent has been very stagnant for a long while.
I bought a good rental property in Kew, Melb in 1991. I got $ 760/mth then in rent. Today I get $1080/mth. Both rents were/are at market.
The truth is that it is extremely cheap to rent a place In Melbourne today. Once the interest rates starts to go up and the number of investors go down we should be able to increase the rents to the magic 5% point again.
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