When to increase rent

Hi,

Wow you are trying to do it all! When you say you have been quite reasonable does that mean 'really cheap'? Have you found a tenant? The Real Estate Institute Site is a good start for information for landlords. If tenants are in a lease the rent cannot be raised, in Victoria you cannot put the rent up more than once in a 6 month period. You must also give them 60 days in writing of your intention to put the rent up. This may be different in other states.

Is there a reason why you are not going to use an agent? If it is cost the agents fees are often around the 7% (of the rent) mark. They also charge for inspections and letting etc. These costs should all be tax deductible.

Keep an eye on the rental market in your area, get new listings emailed to you from realestate.com.au. Then at least you will have a rough idea of the going rate in your area.

Good Luck with it.

Anyone got any other tips?

DWolfe

Hi Helena,

What part of Australia are you in? If you are in qld, the RTA can also help out with that http://www.rta.qld.gov.au or 1300 366 311,  they help tenants, landlords and agents in regards to legislation and also have the median rents arounf Brisbane (they are slightly off in some places, but there abouts. Best way is to possibly either look on realestate.com.au or simply call and agent, advise them that you want a basic round about figure for rental and describe the house to them, most (if competant) can give a rough estimate over the phone.

Honestly, in Qld you are legally only allowed to increase the rent on a property once every 6 months (or twice in 12 months). So therefore you can't keep putting the rent up. Market valuation is how I personally look at the rent increase. I look at it, as to say "If the property became vacant, what could I easily rent it for in todays market" – this way you don't put it up too much or too little.  Although, for good tenants, you do normally keep it a little lower.

In regards to interviewing tenants, I speak to them at the property, suss out where they work, who they will be living with (partner, kids, dogs, aunts uncles, cousins etc etc). Normally you are looking at only a 5 minute convo here, but take notice of their car – do they look after it? how were they presented? Whilst only and "open home" could be beneficial. If the male party was a labourer, did he take his shoes off? Did he contemplate or simpyl just do it? After 9 years in Property Management, this just comes to you, you can pick alot about someone in the first 5 mins, then I process their application – thoroughly, I go through ID like a pitbull, check the addresses on licences – does it match the addresses on the application forms? Should be the 2 addresses on the application form (current and previous), medicare card, are there more people on their not mentioned? If family is mum on Centrelink (no offence, I too am on part centrelink) BUT, is she telling you she's living with her partner and her centrelink info says she's single? There's so much I go through before taking any apps to owners. But check every detail and then, make sure you have Landlord Insurance! Tax deductible and awsome if you ever need it!

Good luck!

Yeah I agree with the link idea.

Sounds like a good plan. I can see one drawback which is one bedroom acc may increase by smaller amounts yearly. For instance if the current market is $170 next year the going rate may only be $185. Whereas if you rented out the whole house (sorry daughter) for $320, next year the rent maybe $375. It really depends on the area and the house.

The great thing about having family renting is that you can make improvements. I would be careful to tell any tenants about any plans you have. Be very explicit about any alterations you plan on making, time frames for work, etc as tenants have the right to quiet enjoyment.

Forest lake PM do you have websites that you use to perform tenant checks? Or is it just ringing previous agents/landlords. How do you go if the person has never lived out of home?

Thanks this information is really great to know

DWolfe

Hi Helena,
 I use the realestate.com.au website too, for a lot of analysis of rents and prices. A point to keep in mind, if you have just purchased the unit, there are restrictions on what you can deduct in the first year. Worth looking into, depending on what sort of fixing up you are planning. Depending how many properites you have and how hectic your life is, you can talk down the management rates with the Real estate folk. They are fantastic to do all the legwork for getting in tenants and checking and they know all the tribunal ins and outs. It also means that there are no  middle of the night calls on your mobile! Check around to find out who the good ones are, because the bad ones are ****!!!!
Also busy working full time mum doing alright with the property side of things

Carey

Thanks FL PM. Great info! Will check it out!

D