With rents rising so quickly in Gladstone at the moment I am wondering whether people would recommend renewing a lease with a current good tenant and not getting market rent or starting with a new tenant and getting market rent? Its just that giving a current tenant a $60 – $80 rental increase seems steep.
I would definitely increase the rent but up to you if you want to go all the way to current market as your email suggests. If you want the cash-flow then put it up, you will get plenty of offers from well paid reliable tenants. If you have a moral issue regarding keeping your tenant and not hurting their pocket too much then raise the rent accordingly. If it’s a question of simply getting the market rent you will get it.
look @ it this way, how many weeks/months is it going to take to a) get vacant possession; b) fill the vacancy before the new tenant starts paying rent/is available to move in c) cover letting costs eg agent/advertise/lease preparation etc
You may be better off getting a rent increase than to lose the tenant.
I am about to increase the rent on my place from $360 to $420 per week. Fortunately I have a corporate tenant and it is fully furnished with everything they could need. There are very few fully furnished properties in Gladstone and strong demand.
If rents are going to eventually go sky high, then you need to keep up with the market. No point doing small increases once in a while, you will get left behind. If you want to sell at the peak of the boom, rental return will be a key driver of the value of the property.
I have noticed that while alot of stock just came onto the rental market, they are ridiculous rentals like $600 per week for a 2 bed unit. They are no competition for the existing stock.
mattnz wrote:I am about to increase the rent on my place from $360 to $420 per week. Fortunately I have a corporate tenant and it is fully furnished with everything they could need. There are very few fully furnished properties in Gladstone and strong demand. If rents are going to eventually go sky high, then you need to keep up with the market. No point doing small increases once in a while, you will get left behind. If you want to sell at the peak of the boom, rental return will be a key driver of the value of the property. I have noticed that while alot of stock just came onto the rental market, they are ridiculous rentals like $600 per week for a 2 bed unit. They are no competition for the existing stock.Thank you for the responses. I think I will implement a $60.00 increase with maybe just a six month lease. There is really not much to rent in Gladstone and even less in Boyne Island/Tannum Sands. The $600 pw units are a new block right next to the railway line, I wonder if the windows are double glazed. It seems that Elders are the agents for many of them. There is also another 'executive block' ready near the yacht club. Be interesting to see what happens in the next couple of weeks with the Agents back at work.
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