Hello there,
Here’s something that might get you thinking (or perhaps not…): the other day my employer was relating a story of one of his friend’s recent property acquisitions. This chap, Luke, had bought a rental property for what was described as an average figure, complete with long-term tenants (very long-term actually – 20 years or so) that are paying somewhere around the $180 per week mark. His agent has advised him that, to be in keeping with current rents in the area, he could reasonably be charging somewhere in the vicinity of $250 – $260. However, the area is not the best, so he is glad to have good tenants. What would be his best course of action, given that he bought the property as an investment?
Looking forward to your replies,
Gerrit Goerreshi GBv.G
for me its not a ethical question its a business question and its simple its the devil you know a good tennant it gold and yes they may pay alitle less but it beat
1. waiting for another good tennant or
2. getting a bad tennant that trashes the joint and you have to repair.
we are still chasing a real estate that put his brother in law in a resi unit and got rid of a good tennant the guy left with 6 months rent oweda swe couldn’t get him out and new kitchen new bath room and new carpet as a leave present he pulled everything off the walls and then turned on the water. and no we are not using the real estate for anything any longer
so my answer is if they pay there rent on time and look after the building and I have a couple of those ( I have one that paints the building with the original paint each year him self at no cost) they are easily worth the money and the hassle.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]I was in a similar situation in September where the tenant (although good) was paying below market value.
I had the PM tell him that there would be a rent rise (although I increased it this was not as high as the PM said I could get) in Dec. and another rise in June. The tenant grumbled about it but knew that he was on a good thing as there was nowhere in the area for the same price that I was asking.
Tenant is happy, I am happy with the increase [biggrin].
Had he chosen to leave that would not be a big deal as it would of given me some time to clean it up and then advertise for market value.Good luck
Jenny1
I would increase the rent slowly, maybe every 6 months until it is up to market rent.
Terryw
Discover Home Loans
Parramatta
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Yep, agree!
although they are great tenants, they still should be paying market rent not below. I would increase it at a rate of 10% every 6 months.a long term lease does not protect you if they decide to leave. You may be able to get them to pay another 2 weeks at best if they leave but you definately cant chase them for 20 years no matter what is in the contract!
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