Hi there,
I’m looking at a prospective unit to buy. It has an existing tenant who is paying below the current market rate. I know that as a landlord I’m restricted to raising the rent to every 6 months. Do you know how it works if I were to buy the property. Is the rental agreement considered new as a result of change of ownership so I’d have to wait 6 months from settlement? I know that land lords are restricted to raising rent to 6 monthly. What date would be used for the last rental increase?
Thanks, Christian.Hi there,
You’d still have to be in line with where the last increase was. Your best bet might be to wait 6-12 months into your ownership to be sure.
However, hearing how the WA market is at the moment, have you looked at what comparable properties are currently asking? I’ve heard of some areas dropping 10 or even 50 a week to secure tenants.
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
Hi Christian,
To put it bluntly the rental market in Perth is not good at the moment (but the buying is sensational!). A balanced market is 3000 properties for rent. Currently we are hovering around the 10,000 mark.
I would look be actively researching comparable properties for rent in your area. In the current market, properties are tenanting for $20-30 per week less than advertised. Compare this to what you are currently getting. If there is a gap, then talk to your tenant and review the lease with your property manager, to make sure that the lease correctly allows for a rental increase.
Exercise caution if you do want to increase rent. In the current market it is better to be getting less than market rent over no rent at all.
If you have any questions, please PM me.
David Hall
-
This reply was modified 8 years, 9 months ago by
David Hall.
-
This reply was modified 8 years, 9 months ago by
You must be logged in to reply to this topic. If you don't have an account, you can register here.
