G'day all….
I bought my first IP last april and have rented it out for $350 ever since… my second IP i bought in October last year and have rented that out for $345….. what would be an appropriate rent rise seeing that there have been so many rate rises both by the RBA and my lender independently? I was thinking about $30 rise on both…what do u think? cheers
tuggerwaughFor a start I would look on realestate.com.au and see what other properties similar to yours are being rented out for. Also ask your Property Manager – they will be able to tell you what everyone else is doing.
Tara.Very hard to help you if no one knows where your property is located. Do you have a house or unit? How old is your property
Weigh up the following: how long can you fund a vacant property against (replacement of tenant) vs a small increase which the tenant will swallow (tied up with a new lease of the property). Unlike a commercial lease, the tenant does not have any investment (fitout) tied up with the property and will come or go as they see fit.
Although the laws of Supply and Demand will ultimately dictate the level of rent that can be achieved on investment properties. With the current trend in rising interest rates, now more than ever, Investors should be mindful of passing on the higher costs by increasing rents whenever the opportunity arises. I believe that Tenants have been getting a free ride for too long. I wrote more on this subject here http://jonchown.topproducerwebsite.com/real-news.asp
Jon
sorry for the little information…properties are
1. 1980 4 bedroom 3 bathroom house in Kingston Beach, Hobart at $350 a week
2. 1991 3 bedroom 2 bathroom townhouse in Sandy Bay, Hobart at $345 a weekI think the tennants have had a good ride with the properties at these prices so far….cheers
You must be logged in to reply to this topic. If you don't have an account, you can register here.
