If you’re a landlord, chances are you’ve looked at your last mortgage statement, insurance renewal or council rates, and thought something has to give.
Property ownership is becoming increasingly expensive, with both investors and tenants dealing with their own rising living costs – making rent increases an even more sensitive topic.
So how do you approach it?
If you’re looking to keep your investment performing well without risking a great tenant walking out, it’s time for a well-considered rental review – but these aren’t simply about getting more rent.
In reality, a proper rent review focusses on ensuring the property is sitting in the right place for the current market. That may mean a modest adjustment, a significant increase, or holding off altogether.
So how do property managers decide?
When recommending a rent adjustment, agents typically look at:
- What similar properties are leasing for – and what tenants are willing to pay
- The quality of the tenant; if they are paying on time or are in arrears, and how well they maintain the property
- How long the tenant has been there
- The condition of the property and whether it requires repairs or renovation
While market conditions may support a larger rent increase, some landlords choose a more conservative approach due to a number of factors. These often include the condition of the property, the desire to attract and retain quality tenants, and the value of a tenant who has consistently cared for your home – and ultimately, contributed to the stability of your investment – all of which should play an important role in the decision.
There’s no magic formula when it comes to successful property investing, and landlords who achieve the best long-term results are those who understand that it’s not as simple as maximising today’s rent.
If you’re unsure whether your property’s rent is where it should be, our team is always here to help – call us or visit your local office today.
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
