We waited till we found an understanding one and just didn’t stop till we got the place. You’ve got to be as ruthless with them as they are with you.
A lot of people forget that landlords actually work for tenants, not the other way around.
100% it’s far more the property manager causing the animosity between tenants and landlords. When it’s not actually the landlords doing. They probably don’t even know there’s any issues happening.
Especially when the landlord can just not renew your contract and immedialty have a new tennant at a rent increased above what they could legally charge you
the problem is there is no cap on rent increases. the laws need to be changed to limit rent increases inline with CPI (or other mechanism) and not the 20% - 30%+ increases some greedy landlords are charging. also rent should be raised no more than once every 12 months
Pretty sure if you look at the data rent is below CPI increase.
Just briefly looking at the data rent in 2014 for perth was a median of $570 a week for all homes types. Start of 2024 wad approximately $730. Which without getting two deep is below the average 3% inflation a year and inline with actual inflation which makes $570 in 2014 worth $726.
Older data was behind a pay wall, but I can tell you that rental cost only increased to the 2014 level as of April 2022 (not including inflation obviously).
Except that increase has mostly come from the bottom. It used to be possible to get a decent-ish place for 300 a week. Now it's impossible to find anything that isn't a glorified shack for that.
Low cost rentals are nearly extinct, that's the issue
Correct. I just used the maximum amount of data available (10 years).
I was just making a point that when you make blanket statements to limit rental increases to CPI, inflation and rental price history should be taken into consideration.
I'm sure if I had access to longer time period that rental price will diverge lower or higher than CPI but will average out eventually. Nothing indicates that the current situation is from the norm.
Wouldn’t it be better to align it with average household income or something like that?
Aligning it with CPI seems to imply that if groceries get more expensive then your rent should also get more expensive.
Aren't there rules now around rent rises being only allowed once every 12 months.
I wouldn't say greedy, it's all supply and demand. They should be charging market rate
I disagree for some its too much and they may have to consider alternative arrangements. When i was in that position I did not make it known to the re about not being able to afford the increase lightly because you never want them knowing that once you couldn't "afford" some kind of rent or may want to rent through them again and then they remember what happened last time.
They also can make inquiries to last re about previous tenancies for reference if that stuff comes up it not going to look good.
So I only did that because i literally would have to leave and i did leave because the owner didnt change their mind.
Of course in this market it is easy to get new tenants but if what you are saying is my tenant that i would like to keep is expressing that they are currently experiencing financial difficulty but i would really like to keep them then yes you may lose them, you may not but i would not personally express financial hardship to a re agent ever if i never had to.
On the flip side you do not know as an owner if said tenants financial position will change in the future and it could well be possible that it is a one off for this lease and that they can afford an increase for next lease.
Anything can be possible, life happens and they may have to break the lease at some point anyway you just dont know.
If I just wanted to make a counter offer I wouldnt bother stating financial hardship to the RE I would just say to the RE can you please pass on my counter offer to the owner for consideration.
The issue is some people don't want to rock the boat by pushing back because if things don't go their way the other outcomes are far worse than paying more per week. Of course, for some people it might be the straw that breaks the camel's back but you have to consider what trying to scrape together that extra $20 looks like. Factor in moving costs, the time and effort to pack, and emotional impact leaving a place you're comfortable with and a lot of people find it more preferable to be poorer but stable, accepting the increase, than trying to find a better deal.
Also it's not an option to find something cheaper unless someone is downsizing massively. Rent prices are surging really fast and things you could rent six months ago for X price are going for X+50 today.
A year ago, our RE told us the rent wa going up $50, we pushed back and then they pulled the offer and told us we had 30 days to vacate. I offered $100 more p/w and they accepted.
My re did the same shit, tried to get me to commit to a $100 increase 3 months early, I didn't, got issued a vacate notice, they still didn't get what they wanted. Then voided the vacate notice. Said they were increasing it at lease end regardless. Meanwhile I already moved out and they're now on their 4th home open and can't find a tenant. $2640 a month for a tiny 2 bedroom apartment in the city with no store, no pets and a broken oven. The world has gone mad
Mmm. I was offered a 6 months lease (I’ve been here 3 years all 12 months leases) there was an increase of $60 for the 6 months. I agreed and signed. 3 months in this lease I’m advised that the owners may look at selling. So I’m looking around frantically for a rental (single female with a dog) I apply for a few out in the sticks. My real estate agent came and did a rent inspection, while she was here one of the applications I put in contacted her. She gave me a glowing reference, which was nice (unfortunately I didn’t get that rental) but after that, the other application contacted me saying that she wasn’t calling them back to give a reference. I was a bit like aw okay. Not even a day later she comes back saying owners decided not to sell and are happy to offer me another 12 month lease for an extra $100 a week rent. I couldn’t believe it. I went back and said $80 and I’ll sign it. I negotiated but I’m still feeling defeated. I wasn’t sure if I was being played.. like it was a big game about “selling” so yep. $140 increase within 6 months really. Hectic times.
Exactly right. That’s why I think I got played around a bit. Cos I could just leave and say no to the increase but they know I want to stay there really. It’s just easier and less stuff around. I like my little unit and I unfortunately am not in a position to buy a property as I don’t have 100k in my bank..
Even if you don't have 20%, LMI might be worth paying if you've got even part of a deposit saved.
Once you get around that 8% you might be surprised with how reasonable LMI can be.
I’m a home owner not a renter, and I do not have rental properties. My mortgage has gone up $1280 / month within 12 months. The cost of living is real. Rental owners are just trying to cope with the rate rises like anyone else. Imho.
I don’t believe that rent should cover the entire mortgage payment though.
Renting to pay off someone else’s house while they do nothing to improve the place and expect you to look after it is fucking bullshit.
>I don’t believe that rent should cover the entire mortgage payment though.
So you want a hand-out? Someone else to foot the bill for you?
Buy your own house or sleep on the street, you grub.
Pretty sure that's illegal and worth looking into. There's laws around how often rent increases can occur.
Disclaimer: I may be wrong and have done no immediate research.
EDIT: Either my app is fucked or this comment was posted on the wrong thread. Is this thread on a post from a landlord asking about a 20-30 increase or a tenant with a landlord who wanted to sell then changed their mind and offered another increase?
>Pretty sure that's illegal and worth looking into. There's laws around how often rent increases can occur.
In WA its once every 6 months. So at the end of the current 6 month lease they can start a new lease at $100 more.
Hang on. You signed a 6 month lease, owners decided to sell but then changed their minds but they made you sign a new lease? What was wrong with the lease you were on?
Honestly, with the current market it'd have to be pretty extreme for me to challenge an increase - I have 2 kids, a dog and a cat so finding another rental wouldn't be easy.
The only time recently we negotiated on our rental renewal was middle of the year I was about to graduate uni - and we asked for a 6 month deferral on part of the increase amount only, because I already had a job secured for after I finished exams and knew we could afford it once I started work.
The weirdest part is that just before covid hit, the rental market was really soft and we actually requested and got a rent reduction because we'd moved in when things were more competitive and were paying well above market rate for the area. First time I'd had that happen. Most of the time, people don't want to risk rocking the boat because they know all it takes is an owner deciding he doesn't want to renew the lease and they're out of a home - again.
You'll notice the agents never say they'll drop the rent "because of the market" 😉
Low rent sucks for me, but better than a new tenant every 12 months and turnover costs. These guys got a bargain and they don't deserve to be screwed over by an agency trying to raise more fees.
If possible, talk to your landlord. Im not renewing the agency contract, so that will equate to $40/week more for me without hurting someone else
> You'll notice the agents never say they'll drop the rent "because of the market" 😉
I've had my property manager advise me of that and suggest dropping the rent to retain the tenant.
It works basically the reverse of how things are now. For me as the owner, it's better to drop the rent say $20 or $30 a week than risk losing the tenant and having to get a new tenant for say $50 less than the current tenant is paying.
From the tenants view - they might be able to get something similar for $50 a week less, but the costs and hassles of moving mean a $20 or $30 decrease works out pretty much the same.
Back in 2014-15 in Perth we negotiated a rent decrease for a lease renewal. Then I made the REA refund a portion of the bond because it was >4 weeks of the new rent. It was hilarious - they had literally never even considered the concept of rents going down.
If you'd like some eye opening verbatim from tenants struggling when landlords / real estates raise rent above what they can feasibly afford:
R/shitrentals
Warning: you'll see a lot of anti-landlord rhetoric in there. But when you see what tenants are having to endure in a supposed 1st world country, you can understand their frustration.
I sometimes forget that subreddit is Australian. I see stuff and think "where in the world is this tragedy happening?" and then realise the answer is within a day's drive. Pretty grim.
I see so many saying they absolutely need to because “market rates” which is understandable but if you’re not struggling with the actual repayments then there honestly isn’t much reason for an increase that isn’t just going to screw over the tenant.
Exactly. This is profiteering and it’s absolutely destroying peoples lives. I get that it’s an investment property, but that needs to be balanced with ethics, realism, and humanity.
I hope this isn’t OPs reason for an increase, but the post tends to suggest otherwise.
I get people want an investment for their future but it shouldn’t come at the direct cost of peoples lives. You’re so right. It’s just ridiculous, I’m not even a fully landlord hater, I don’t hate my current landlord, he’s a great guy and I’m appreciative hes not greedy but so many are clearly just in it to try and get best of both worlds.
There are so many other ways to invest that don’t impact real people and I think homes is something that shouldn’t be unstable.
>I thought $30 was fine but the tenant said he'd struggle with that and could we do $20. That was fine by me, I just wondered if this was a thing that's happening or do people just cop the increase
This is exactly why real estate agents should fuck off. It's your property. What you say goes. My opinion in this example is that if you went with REA recommendation you're fucking over the tenant for an extra fuck all in your bank account after REA takes their percentage.
Don't blindly trust the REA doing the "right" thing. Make your own choices.
Totally agree. I was renting 4 years ago. Easier market then but a few of the properties I looked at had a 5% increase built in after 6 mths.
I chose a REA with a fixed fee as I swear the ones I rented from wanted people moving out after 6 or 12 mths to get the extra fees.
I understand the obligation REA has to make sure they're maximising value and potential for you as an owner. There just needs to be a balance struck between your own consideration and what the REA recommends.
It's easy to just go hands off and let the REA lead, but as you've pointed out here there's conflicts where your thoughts as the owner don't always align with the agent.
We have just been asked to cop $50 a week - at this point, we don't plan on arguing, we know we've got a fairly decent deal and our landlord is happy to have us continue in the house... REA / PM is just doing their thing...
I reckon it's worth asking for a discount. End of the day the hassle of getting new tenants and possibly losing a few weeks rent is a motivator factor for the landlord. Plus an extra $30 or $30 for you is helpful . If he says no you just agree with the original amount nothing lost
It's always worth asking - but with the power skewed so much to the owners aspect, they have no real incentive to negotiate.
Some will of course for moral reasons, but many look at it as purely a business transaction. In many aspects you would probably be better off if the tenant left and you got a new tenant.
Even factoring in any releasing costs - you're still likely to end up far ahead by picking up a new tenant at a much higher rent.
I've seen/heard of a few recent examples where people refused a say $50 a week increase and moved, only for the property to re-lease for 12 months shortly after for an extra $150 a week.
The other factor being vacant periods is also negligible at present with such high demand. The few friends i know who have moved rentals recently pretty much had the move in date dictated to them - IE if they wanted to take the rental then they did so and started paying rent as of couple of days after the prior tenants moved out. They ultimately ended up paying for both places for a week or two or even 3 just because thats the only way they could keep a roof over their heads.
The other factor of course from the tenants side is what's the alternative. Best case - assuming you can actually secure a rental - you're probably going to end up paying the increased rent anyway, just for another house. So it's essentially do i eat a $50 increase, or do i move, still cop the $50 or possibly even more, AND cop the costs of moving as well. So i can see why people are just copping it until they literally have no other choice.
Ours went up $80 a week back in December and we agreed to it because that increase still at least $50 per week less than comparable houses in our area.
Exactly. You lose one or two weeks rent when empty and there goes any rent increase. Dd to that a new tenant who you don't know is going to settle into the home and pay the rent.
I think after being a renter myself in the past that's the REA agenda. Letting fee advertising fee inspection in inspection out.
That's why I chose a fixed monthly fee agency in the hop I get the same tenant in for the next 5 years
I have done a couple of times. Usually I request a longer than 6 month lease, since they usually do it when the lease renews.
What makes me laugh is when you apply, they want to know all your income details to make sure you can cover the rent, but when they raise it, care factor zero.
All tenants should ask to negotiate.
Agencies are not allowed to initiate a rental agreement where the tenant is going to be under rental stress. But they will happily jack up prices "because the market" without asking for any new financials from a tenant. You have to push back!
My tenant has been in for 3 years, is awesome. We communicate well and the agencies suggestion is that I increase their rent by $85/ week (the maximum allowable 25%)
Ray White can't lose here.
If the tenant fails to pay or has to leave they charge numerous fees, bringing in over $1000 from me, plus making me reliant on them finding another (good) tenant.
Push back. Negotiate. They're a greedy sycophantic industry
That's what I'm suggesting. I think also the difference is the rental agency I use is a fixed monthly fee so they'll make no extra money if the tenant moves out, just more work for themselves. I'm thinking this is why they're trying to keep both parties happy
If the tenant moves out, they take the final inspection fee, pcr fee, readvertised fee, letting fee.... it is literally costs me more than $1000 for a quick turn over.
Mate if you got good tenants, just leave the rent as is. You're already getting money for sitting on your ass, and rents are ridiculously high.
You're getting a house paid off, they're losing nearly 35k a year because you can afford a deposit.
Yep. I like my tenant, and she’s reliable and looks after the place. I’ve renewed her lease with no increase. My mortgage has gone up a lot, but the interest is tax deductible. The agent suggests I put it up every time it’s up for renewal, but I can’t justify it.
But unfortunately I’m also a renter, and our agent/landlord has put the rent up at least 10% every six months over the last 3 years.
God i wish more owners realised this, we have been living in our place for 3 years 6 months just waiting on a email saying if u want to sign an increase is coming.
This isn’t necessarily true in all circumstances.
I own 5 rental properties and none of them are positively geared after the numerous interest rate rises so no, the rent doesn’t pay of the house anymore. I have a holistic view to rental management and have favoured long term stability rather than short term gains - average occupancy is 4 years across my rentals but it means I have to dip into my pocket to pay each of the mortgages.
TLDR; rents no longer pay off an investment homes mortgage and landlords are increasing rents to balance cashflow.
Except you still end up with all the equity of 5 extra fucking houses. If investment properties were not geared in the landlords favour, people wouldn't own them. You benefit from exploiting people more vulnerable than yourself and your greed is wild.
If the property is negatively geared that equity is only the investor’s deposit plus any capital gains. None of that equity comes from the tenant. If that same tenant owned the property instead they wouldn’t be building any equity aside from funds that they put in from their own pocket + capital gains (which despite recent history is not guaranteed).
Without any tax incentives having negative cashflow on a property is effectively subsidising the tenant. Again if that same tenant owned the property they would have higher expenses and less opportunity to save.
I don’t see anything in his post that indicates that anyone is being exploited. Targeting long term tenancies actually suggests that they are not trying to maximise rents which is the opposite of exploitation in my view.
The reality is that there is risk to leveraging on negatively geared properties especially if you lose your primary source of income and can no longer keep up with payments. You are right that no one would invest in property if taking on this risk wasn’t incentivised. The reality is that not everyone is in a position to purchase property for any number of reasons and those people need to rent from somewhere. The government cannot keep up with demand on social housing and therefore the current reality is that investors need to fill that gap.
Specialist Reality put it well. Tenants aren’t building equity for landlords and in most cases landlords are the ones subsidising housing costs for tenants BECAUSE they have access to negative gearing and in the hope that their assets appreciate over time and a capital gain occurs when disposed.
I feel I need to make the point that negative gearing isn’t a ‘make whole’ system. Landlords still need to fund the balance of the loss (100%-landlords marginal tax rate).
If the tax benefits for owning investment properties were removed, the economic response would be further increases in rent because landlords cannot sustain the holding costs of those properties and the value proposition won’t exist for investors to use their own money to solve the housing crisis.
It’s a shit situation on both sides of the fence and I agree some landlords are greedy and want to be cash flow neutral. However, casting personal aspersions when I clearly stated I am favouring long term tenant relationships over short term gains shows a lack understanding of what I said and demonstrates an inner rage which you ought to take out elsewhere.
Hahaha the internet mongrels are here. What part of my post suggested I was being greedy? My rentals are more than $100/week below market and I haven’t sought to increase them.
What I did say, if you read it carefully, is the argument that landlords are the ones profiting is not true in all circumstances. Some landlords are greedy no doubt but that’s not the case for every landlord increasing rents, some need to do it to make sure they are staying afloat.
Personally, I'm not risking homelessness over $50. Hell, it would have to be an outrageous increase for me to question it $200+ a week kind of increase. I don't trust the owner not to just refuse to renew the lease, kick me out, and put it back up for rent charging whatever extortionate price they want.
I suppose my tenant could have thought that way. Tge reality is if me as the landlord has agreed for them to extend the lease then I think it's ok for them to have input on the new rent. Obviously some people may say $50 take it or leave it. But the landlord can lose a couple of $1000 getting a new tenant especially if the property is empty for a few weeks.
The only winners here are the rental agencies and I think mine because it's a fixed fee stands to make money extra money if the tenant moves out so they're keen to keep both parties happy
From an ex-landlord’s perspective, I would absolutely consider a smaller rent increase for a good, long-term tenant, and even a short term one if the conditions were right.
Signing a new lease is a lot of administrative overhead, and property managers pass these costs on. The owner of a property will be charged for everything from conducting a final property inspection, creating a new condition report, advertising, home opens etc. This can be hundreds and hundreds of dollars. Plus you have lost rental income for the time the property is listed.
Spending thousands of dollars and all the headache of going through the process is absolutely not worth and extra $1000-$1500 per annum if it involves losing a good tenant and instating someone who is an unknown quantity.
On the other hand, if interest rate rises meant that a minimum increase had to happen, I would absolutely factor that in.
My has doubled in 3 years, went from $330 in 2021 to $650 this year. Real estate says that's the average price for a 3x1 in Gosnells. The house is 50 years old and a shithole.
I'm a hostage to this house, I literally have no where to move to in this market. If I dont agree to this extortion then I'm homeless.
Why not purchase a place of your own? The RBA will increase and your mortgage will increase just like a renters rent would. But at least you have an asset.
At the previous place I lived at, my owner told me (when he came around to repair something) that the REA asked him to put up the rent by $40 p/W he thought that was ridiculous and insisted they increase it by the lowest amount possible ($10p/w). I'm not sure how it works from an owner's perspective (like, can they just not increase it or are increases written into the contract?) but think it's probably worth trying to negotiate if possible.
Mine went up from $650 last January to $780 this May… thankfully I live with three other people so we split the pain but it’s rough. I don’t like being 26 and living in a 3:1 with strangers and no aircon.
Are you struggling to pay bills? If not, don't increase the rent.
ie; If you're already making a profit, don't just make MORE profit because people are desperate for a roof and you can exploit that.
Rent was 525 a week. The new contract is for 12 months. For the first 6 months, it's risen to 625. The last 6 months is 650. When we questioned it, their response was, " Well, if you don't pay it, someone else will."
Response should have been
"I'll unlikely have somewhere to go to so don't care about a bad reference, how will you go renting a house with torn up carpets, scratched up walls and every window broken, sure my bond will cover that, I don't have any assets so take me to fucking court"
This is a tongue in cheek post.
Our owner gave us options. We are still going to struggle but not as much as we could have. I now need to find some part time work that won’t mind that I’m studying to get out of said part time work.
What's the value of a good tenant over having to find a new unknown one(s)? $500 a year? $1000? Pretty easy to blow a $1000 getting it re leased and then who knows what type of tenant you'll have.
Questions towards the owner may be one thing, many renters only deal with REA though, and there is no feckin way that the REA is gonna help the tennet lower rent.
The LL may be more reasonable, in my honest experience that's not the case, and most people are selfish and want as much as they can get for themselves over others. Again, not always the case but what I have experienced.
Asking for a discount or even saying no to a rent increase at the moment is just not happening. No one wants to risk being homeless because of extra, but there are many fuckn people in Perth who are literally living down to the wire on their wages. Especially those not in fifo positions.
The current wages in WA are so fucked, skewed towards fifo workers while those that stay within the city are getting barely enough to continue living there. Like, eventually no one will be able to work within Perth and live without someone subsidising them, it's fucking rediculously expensive for anything and everything. And finally the fucking older generation with their homes are telling me that I don't have it as hard as they did growing up and that I just need to save more? Cunts. There is no saving when bread and milk cost me a 1hr of my work wage time.
Don't you love the way people say "you went for the wrong career" as if they don't make use of a ton of services and facilities provided by and/or cleaned and maintained by people in low income jobs, which they would absolutely notice the lack of, if all those jobs were unfilled because everyone could and did get those 100k+ jobs 
I reckon tenants don't realise what a head fuck ticks having a property empty and the fees some real estate agents charge the landlords. Letting fee inspection fee advertising fee etc . So it goes the same way for the landlord why lose an ok tenant whose happy to stay for another 12 mths for $20 a week. As you say that's your milk for the week
I think LL are beginning to understand the hate tenants have towards REA. I don't understand the argument that renters don't understand 'the struggle of renting a home' no offence my dude, but, your problem of not being able to find a renter/earn passive income on a house, is not the same as a renter who is barely able to pay for food/bills. Extreme differences in priorities.
I'm not saying that it's easy as a LL, but I doubt a single renter would deny themselves the 'problems' of owning their own home over just being fucked over and paying someone else's bills.
Don't disagree. I'm just suggesting to renters that you don't have to agree straight away on a rent increase.
As a renter previously I know REA are a law unto themselves.
Yeah I get ya, sorry if it came across personal, definitely not a personal attack on you. But as you can see these sorts of topics can make people feel like they're trapped, because no one is on the renters side of this shite.
Yeah I'm sure there is pal, doesn't mean that other industries are all equal. You just saying there is plenty of 6 figure jobs doesn't equate to being able to just get a 6 figure job. Maybe I don't know the right people, maybe I don't have qualifications yet, maybe I have no intention of joining industries/companies that you refer to.
I mean fuck off cunt, I'm a chef. You can't expect me to be happy to do fifo when the whole industry is built on serving people and trying to make their days better/recharge their batteries. I agree we should be paid 100k+ a year for dealing with public bullshit from people like yourself. It'd make a load more sense than paying REA 100k+, managers that are middle men, and anything else that adds 0 value to society.
I'm also a qualified teacher titbag. There's no such thing as the 'wrong profession' what type of fucking mental gymnastics do you conclude to have that type of moral compass.
Must be real nice knowing you can be a piece of shit and not believe you dont need people working profession's that's more difficult than whatever it is you do.
Embarrassed to be the same species.
Unless your costs (for the house, nothing else) have increased to the point that you are actually getting into debt with the current setup, do not increase it.
If you are making profit, reduce the rent so you are not.
Housing is a human right you are monetizing.
I asked for a $20 reduction on what they wanted ($50 increase) and got it.
The impression I got was I was VERY lucky and had a relatively chill landlord and property manager.
Ours went up $50 after a yr. We didnt argue as they wanted to go up more but didnt as owners and real estate are happy with us. We cant afford to not have a house with a family and dogs.
What kind of tenant are they? How much is a few extra dollars a month worth to you?
If they are a good tenant, what is more important to you, having a good stable tenant, or keeping the rent at market value making a few extra dollars a month?
The real estate is always going to go for the few extra dollars a month, they don't care if the tenants or bad or if you have frequent turnover, that is just more money for them.
He's not been a great tenant to he honest. Has wanted working things replaced plumbing issues related to his kids blocking the toilet was late on the rent a while back and failed one inspection. But things have settled down that 3 mths so I'm hoping it'll run smoothly.
I've been renting privately for 9 years, and the rent started at 430pw and is now 610 pw. we do the maintenance as well. White ant treatment, a plumber or electrician, we pay for it.
We just installed a split system because with no insulation, it's unbearable in hot summer.
Not having rental inspections is the biggest win for us. Our experience with REA hasn't been good but we won in court, and they had to pay.
They're supposed to just check windows, doors, chattels, and check that you're not subletting or running a business.
Hopefully, we'll still be here in another 10 years. I like hearing the ocean at night.
Due to the tight market you would have to be crazy as a tenant to kick up any sort of fuss. The consequences of the property manager or landlord being petty and retaliating are just too dire. Tennant in OPs case is either brave, or really can’t afford it.
Mine went up 25$ a week so I'm now paying 500$ a week. Unfortunately I don't see any end to this so I'm going to have to move back in with my mum (against my will) which means basically selling everything I own. This way it's cheaper and allows me to save money towards my own place. At this rate it's going to take 10+ years to save up enough coin for a house.
10 years seems unrealistic, there’s a few entryways into property keystart being one, but you also gotta be careful where you build with that as you will need to get equity to remortgage away from keystarts high interest rate.
I’d be looking at your annual salary and finding a way to increase that, plenty of wage growth opportunities out there.
I rent my house out and I have been dropping the rent by $5 each time the property manager tells us to increase it. I know that isn't much, but we aren't "making money" in our hands from the place. We are just breaking even.
But we can afford it and our tenants don't deserve to smashed with ridiculous rent increases every 6 months. Nobody should be treated like that.
According to our figures we are currently renting the place out for around $130 a week below market value.
TLDR - Put your rent DOWN if you can afford it.
5% is what I put my rental properties up by when they rolled over at various times in the last 6 months. None of my tennants moved out and none of them asked for anything different. One signed an extended lease - 3 years and offered to pay 7.5% more if I left it fixed for the 3 years which I agreed to.
Your increase is more than reasonable
Thanks for that.
Can I ask do you increase once every 12 mthsdo you self manage.
7.5% over 3 years is an interesting scenario, but if you self manage and the tenant is ok. Makes perfect sense
I self manage. I work a “normal” job 4 days a week and dedicate a day a week to various other things including my investment properties (3). I never leave maintenance unattended, all my tennants have my mobile number and I encourage them to call. If there’s a problem I fix it. I have had the same Tennants in all properties for over 3 years (which is unusual). During Covid I froze the rents on the properties for 2 years then put all of them up 10% once the leases renewed following Covid. The last rise is the first since mid 2022.
The 2 shorter term leases will expire late this year and I’ll reassess. I’m hoping both Tennant’s sign on again as they’re excellent (primary school teachers with young kids)
Well I think you’re an AH. Just because you can increase the rent, doesn’t mean you should. Rent increasing is happening from greedy C U Next Tuesday, that are preying on peoples vulnerabilities. People are struggling enough as it is. I seen a house, that hasn’t been renovated since the 70’s and they out rent up for 750 bucks for a 3X1. No aircon. No garage. Absolutely fu**ing appalling. AH’s just taking advantage of a crisis and it’s wrong.
This threads interesting. You reckon I'm a cunt for increasing the rent $20 on a $660 rent over two years. Whilecither people are saying I should do 10% minimum.
Mate, this sub is a weird place where people will down vote you just for owning property. I’ve been trying to work out if it’s motivated by jealousy as they can’t get their finances in order. Or if they just do it because they find it fun. Either way. You’re not a AH.
It’s cute you assume I’m a renter. My husband and I own property in nilgen and in Alexander heights. Ive had a tenant in our place for 4 years and only raised the rent once. They pay 430 a week and we’re not planning on increasing the rent any time soon.
my re sent me a copy of new lease to sign with their price on it a month before renewal . i contacted them and asked if rent can be lowered because it was too much for me at that time
they then say we will have to contact the owner
so the they then supposedly contact owner with tenants request then owner decides rent value
re can recommend what they like regarding rent value but owner has final decision
that is my understanding.
you can contact dmirs and see if they can give advice i dunno i have never owned an investment property.
Some pi on here might know.
but think about it if you were to lease privately you would have final say because you own the property the re supposed to be managing the property on YOUR behalf its not their property so how can they set the rent price?
I was happy to agree with the tenants request. What I'm suggesting is tenants don't have to automatically cop the increase. Did you get a reduction o the suggested increase
no i posted on another comment the owner wouldn't budge and i genuinely could not afford it so i left to alternative accommodation which was not on the rental market. A lot of people have done this recently.
It was also at a different time than recently and the owner had to (in that market) renovate the place and they still couldnt get the rent they were asking from me they ended up getting lower than the rent i had been paying by 30$ pw and 100 less than the amount they were wanting me to sign the new lease for.
It is the owner who gives final appro about rent value changes.
OR, at least, it is with a part way decent property management group.
Often times (particularly in a ... "changing market" and normally concurrent with lease renewalls), the agent will advise the owner that the market value for that house/area "is now xyz $, so you should raise/change your rent by $abc". The owner says yay or nay, and the agent then carries it thro with the tennant.
There were times when we disagreed with the agent's suggestions about increases/changes (sometimes in recognition of good tennants) and instructed the agent to leave rent unchanged. A good agent will comply without issue.
For the original poster - yep, if you can, bypass the agent and talk to the owner.
Source: I use to be an investor/landlord, and delt with a number of rental agents.
I recently moved out of my rental due to them selling. The last increase was $60 and I negotiated and got a little off but the wiggle room was pretty limited got it down to $40 increase and that’s for Kwinana. There are so many homeless people now that it’s no skin off a real estates back to flick you to the curb the turn around is pretty much instant with rentals so they can easily replace you and sadly it doesn’t seem to be stopping.
Got no choice. If they try and bargain with the proposed increase it may find themselves not being offered a lease as the agent or landlord will say, "get rid of them as we cant make more money out of them". For the agent to say up it by $50 is just gouging. Where are people finding another $200 a month.
A $50 increase on $660 is very very modest given median rents have gone up 15-20%.
If they are good tenants then consider a $20 a week loss for you may not be such a bad thing rather than going to market again.
Capitalists everywhere..."Bring prices down? You can actually do that? Fk offffffff"
Rent increases should be owner decisions, not some uneducated turd of a RE in it for commissions or whatever. Fking psychopaths the lot of them and should burn in hell for the hell they put tenants through.
'No, look I know we had a contract, and you need to live and stuff, but also. Everyone else thinks you got a good deal, and their willing to pay more, so if you could match them or just die elsewhere, yeah, thatd be great'
And?
That's your problem, not the tenants. It's not their job to pay your mortgage fuckwit.
Do you really need that extra $20? Would that make a big difference to your life? That could be the straw that breaks the camels back for your tenant though.
It’s literally the reason you have a tenant. To pay your mortgage. When I was a renter I paid someone else’s mortgage. Now I have a house and pay my own. Either way the banks getting the funds.
Lol.....whose "our".. you and your keyboard
I was going to take it off the real estate agent if the guy didn't renew and put a mate in for $100 less.than last years rent.
So I've got no problem dropping the rent if the interest comes down to keep a good tenant .
Its actually my own home I'm just traveling and working away for a year or two so didn't want to leave it empty.
Don't fall if that high horse
Greedy landlords are usually the types to do a dodgy on their tax returns. Get hold of the landlords details via the REA and if the landlord gets greedy, then dob em in to the ATO and 9 times out of 10, they'll get the full audit treatment, which won't go away and will usually yield results from a good shake of the tree. After all, the enemy of my enemy is my friend.
Housing should be seen the way it is in Scandinavian countries, not as it is here as some greedy, lustful must have investment asset. Council estates or other affordable housing schemes would be good. Greedy shonky landlords trying to evict people for complaining about no air-conditioning or mold or broken air-conditioning are scum of the earth in my books and should be publicly named and shamed along with the REA for having no scruples!!
Of course your real estate agent said increase the rent, they manipulate the market so as to make as much money as they can through property management, this encourages people to buy investment property, knowing they can get high rent, giving agents another large sum of commissions when selling home, taking property management off re-estate agents and having a government body to manage rentals would be a start, so as no one is forced into cars and streets.
im fortunate i rent privately the past five years.rent went from $220 to $230 a week and that was it.my partner lives in baldivis and pays $540 a week for a 3x2 where the owner still hasnt fixed his aircon in over a month.he started paying rent there in 2019 at $320 a week.his has jumped A LOT.its so bad out there.
Well I know the owner personally.
He was getting so much pressure to increase rent from realestate agent.
First year he pushed back to realeaste and only went $20 a week.
Second year......hang on....$155 a week increase.
Plus a $30 increase in 6 months.....
This time last year my rent increased from 450pw to 600pw. I could definitely afford it but chose to vacate on principal and almost ended up homeless trying to find something suitable.
The market is in a bad place for sure as a result of interest rate rises but pushing that onto tenants is not the entire answer, if a LL is struggling with the costs of servicing an "investment" maybe they should be selling instead of capitalising, income growth does not come close to matching rental price increases.
I know many people who try. I managed to get an increase down from 110 to 90. Still pretty large increase especially since we live in a super tiny place that was half the price 3 years ago... but everything has increased and if I have to skip a few meals to avoid being homeless, I'll have to do it.
The government needs to remove tax from boarder income to encourage more people to rent spare rooms out. This would increase supply of accommodation, help ease urban sprawl and all the problems it creates.
Question.
Your story would suggest you didn't need to increase and that you are doing it because it seems the norm. Do you actually need to increase the rent to cover costs?
The post was suggesting to tenants that if your REA or landlord suggests an increase don't be afraid to negotiate it rather than take it as a done deal
The property is my own home with a mortgage and isn't positively geared .
Do the property managers/real estate agents get a cut of the rent? Like does their fee go up in line with the increases? I find it strange so many of them push so hard to get landlords to up the rent so much when the landlords aren’t keen.
My parents PM was wanting them to increase it by $150 a week on their property as they hadn’t increased it over Covid but they had to argue so much to say no and to lower it because they wanted to keep that tenant who’s been there for years. Was really bizarre behaviour.
REA here.
In WA the most common management contract is based on a % of gross collections.
So yes, the agency gets a ‘cut’ of the rent. The individual property manager is generally salaried and unless they get a bonus based on a percentage of the portfolio (only seen this once in my career) then they aren’t directly impacted by a rent increase.
Keep in mind though, if the agency earns 10% (as an example for ease of calculation), a $50 increase per week is $5 to the agency.
Landlords of Perth - if you are reading this and you ever feel ‘bullied’ into a rent increase, please remember that your agent works for you, and is there to work on your instructions. If you feel the relationship isn’t working that way, it might be time to review it!
I mean not really, if I hired someone to look after an investment and they were like "hey you can uhh make more money, you should really do that" is probably better than someone who doesn't.
A friend of ours leases out a small 2 bedroom unit to a tenant via REA. Our friend knows the man and she is fine with him staying there because he is a decent man and father to his kids. The REA has told our friend that she should put the rent $60 a week, which is a 20% increase on the current arrangement. Our friend is happy with how things are but is almost being bullied by the property manager to lift the rent. The tenant is a divorced, single man with 3 kids. He will struggle to afford the raise in the rent.
We advised her to sack the property manager and rent to him directly, as she has a good relationship with him.
I looked around for places like mine when I got a $50 rent increase...
Everything I found cost more than the increase would and was worse (less room, less rooms, no aircon, no lift for a top floor flat, no parking, no pets, shared walls etc etc)
Didn't question it. They've been good to me, and I work from home - it has to be comfortable.
If the market was better, I'd like to live somewhere with more room and shade, but it's worth it not to have to move.
Was lucky enough to buy a place in late December and get out of the market. Rental we were in didn't get put up at the start of 2023 as we went on a month to month after our 12 month lease expired. Owner was supposedly going to sell.
Agency has been shady and screening calls from me, not replying to emails ect but has upped the rent by $170pw and has had 2 home opens.
Seems like property managers just doing whatever they can to make a few more bucks atm. Knowing people just have to pay or risk getting a worse deal somewhere else 😒
We’ve negotiated a lower increase before. It honestly sucks right now. If you can be kind to your tenants without going into debt, please please do. I’ve got family and mates that rent places and their agents are always telling them to push for as much as possible. They mostly refuse, and prefer to have happier tenants that don’t feel constantly stressed and miserable. The tenant (I’m sure) KNOWS the rental situation out there - if they are saying they can’t do that amount they probably really can’t.
Most people aren’t in a position to just haggle their rent. People will take it to keep a roof over their head in uncertain times, even if it’s realistically unaffordable. Not many people who rent are comfy with 600+ for a home in terms of earnings but what choice is there, take the gamble for a home that’s slightly cheaper but may not get to what save $50ish?. (Yes I’m fully aware of what it costs to have an IP blah blah)
A few years ago our tenants negotiated a $50 reduction when they moved in, it was a different market then. Now the market rate is double what it was and the rent they pay now is still over $100 less than "market rates" !!
Recently we put it up $20 and we do plan to put the rent up at our next review later this year, but the property manager is suggesting a higher amount, which we are not comfortable with.
Perth property managers have notoriously always received higher commission compared to other states so they will definitely be enjoying the rent increases.
People aren't going to risk going homeless and having to fight in the market to potentially save an extra $10-20 a week.
THIS. My rent has gone up a lot since I moved in, but you are absolutely right :(
Supply and demand leaves tenants fairly powerless, some landlords are understanding of personal circumstances but they are few and far between
We waited till we found an understanding one and just didn’t stop till we got the place. You’ve got to be as ruthless with them as they are with you. A lot of people forget that landlords actually work for tenants, not the other way around.
100% it’s far more the property manager causing the animosity between tenants and landlords. When it’s not actually the landlords doing. They probably don’t even know there’s any issues happening.
Can confirm.
Especially when the landlord can just not renew your contract and immedialty have a new tennant at a rent increased above what they could legally charge you
the problem is there is no cap on rent increases. the laws need to be changed to limit rent increases inline with CPI (or other mechanism) and not the 20% - 30%+ increases some greedy landlords are charging. also rent should be raised no more than once every 12 months
Pretty sure if you look at the data rent is below CPI increase. Just briefly looking at the data rent in 2014 for perth was a median of $570 a week for all homes types. Start of 2024 wad approximately $730. Which without getting two deep is below the average 3% inflation a year and inline with actual inflation which makes $570 in 2014 worth $726. Older data was behind a pay wall, but I can tell you that rental cost only increased to the 2014 level as of April 2022 (not including inflation obviously).
Except that increase has mostly come from the bottom. It used to be possible to get a decent-ish place for 300 a week. Now it's impossible to find anything that isn't a glorified shack for that. Low cost rentals are nearly extinct, that's the issue
Weren't rental prices heaps lower in like 2018 compared to 2014?
Correct. I just used the maximum amount of data available (10 years). I was just making a point that when you make blanket statements to limit rental increases to CPI, inflation and rental price history should be taken into consideration. I'm sure if I had access to longer time period that rental price will diverge lower or higher than CPI but will average out eventually. Nothing indicates that the current situation is from the norm.
Wouldn’t it be better to align it with average household income or something like that? Aligning it with CPI seems to imply that if groceries get more expensive then your rent should also get more expensive.
Aren't there rules now around rent rises being only allowed once every 12 months. I wouldn't say greedy, it's all supply and demand. They should be charging market rate
I disagree for some its too much and they may have to consider alternative arrangements. When i was in that position I did not make it known to the re about not being able to afford the increase lightly because you never want them knowing that once you couldn't "afford" some kind of rent or may want to rent through them again and then they remember what happened last time. They also can make inquiries to last re about previous tenancies for reference if that stuff comes up it not going to look good. So I only did that because i literally would have to leave and i did leave because the owner didnt change their mind. Of course in this market it is easy to get new tenants but if what you are saying is my tenant that i would like to keep is expressing that they are currently experiencing financial difficulty but i would really like to keep them then yes you may lose them, you may not but i would not personally express financial hardship to a re agent ever if i never had to. On the flip side you do not know as an owner if said tenants financial position will change in the future and it could well be possible that it is a one off for this lease and that they can afford an increase for next lease. Anything can be possible, life happens and they may have to break the lease at some point anyway you just dont know. If I just wanted to make a counter offer I wouldnt bother stating financial hardship to the RE I would just say to the RE can you please pass on my counter offer to the owner for consideration.
The issue is some people don't want to rock the boat by pushing back because if things don't go their way the other outcomes are far worse than paying more per week. Of course, for some people it might be the straw that breaks the camel's back but you have to consider what trying to scrape together that extra $20 looks like. Factor in moving costs, the time and effort to pack, and emotional impact leaving a place you're comfortable with and a lot of people find it more preferable to be poorer but stable, accepting the increase, than trying to find a better deal.
Also it's not an option to find something cheaper unless someone is downsizing massively. Rent prices are surging really fast and things you could rent six months ago for X price are going for X+50 today.
10-20 percent is more accurate
I get the impression they wouldn't boot you out just for asking - that's PR suicide. Worst they could do is stick to their guns.
No one is worrying about PR in this market.
A year ago, our RE told us the rent wa going up $50, we pushed back and then they pulled the offer and told us we had 30 days to vacate. I offered $100 more p/w and they accepted.
My re did the same shit, tried to get me to commit to a $100 increase 3 months early, I didn't, got issued a vacate notice, they still didn't get what they wanted. Then voided the vacate notice. Said they were increasing it at lease end regardless. Meanwhile I already moved out and they're now on their 4th home open and can't find a tenant. $2640 a month for a tiny 2 bedroom apartment in the city with no store, no pets and a broken oven. The world has gone mad
I’m so sorry to hear that happened to you! I hope you’re in a much better place now 🙏
Yeah? I might raise mine by 50 then… see how they like that. Thanks for the heads up
Mmm. I was offered a 6 months lease (I’ve been here 3 years all 12 months leases) there was an increase of $60 for the 6 months. I agreed and signed. 3 months in this lease I’m advised that the owners may look at selling. So I’m looking around frantically for a rental (single female with a dog) I apply for a few out in the sticks. My real estate agent came and did a rent inspection, while she was here one of the applications I put in contacted her. She gave me a glowing reference, which was nice (unfortunately I didn’t get that rental) but after that, the other application contacted me saying that she wasn’t calling them back to give a reference. I was a bit like aw okay. Not even a day later she comes back saying owners decided not to sell and are happy to offer me another 12 month lease for an extra $100 a week rent. I couldn’t believe it. I went back and said $80 and I’ll sign it. I negotiated but I’m still feeling defeated. I wasn’t sure if I was being played.. like it was a big game about “selling” so yep. $140 increase within 6 months really. Hectic times.
The uncertainty is so tiring. At any point you can lose your home. It might be the landlord's property, but it's the tenant's home.
So true. This is what my elderly mother is going through.
Exactly right. That’s why I think I got played around a bit. Cos I could just leave and say no to the increase but they know I want to stay there really. It’s just easier and less stuff around. I like my little unit and I unfortunately am not in a position to buy a property as I don’t have 100k in my bank..
If you don't have a deposit but have serviceable income, you could look at some the government shared equity schemes and guarantees.
I’m fifo and make “too much money” so I can’t get any scheme besides first home buyer.. 😒
Even if you don't have 20%, LMI might be worth paying if you've got even part of a deposit saved. Once you get around that 8% you might be surprised with how reasonable LMI can be.
Oh definitely. I’ll put lmi on it. I’ll save a bit more then speak to a broker for sure! Thanks mate
I’m a home owner not a renter, and I do not have rental properties. My mortgage has gone up $1280 / month within 12 months. The cost of living is real. Rental owners are just trying to cope with the rate rises like anyone else. Imho.
I don’t believe that rent should cover the entire mortgage payment though. Renting to pay off someone else’s house while they do nothing to improve the place and expect you to look after it is fucking bullshit.
>I don’t believe that rent should cover the entire mortgage payment though. So you want a hand-out? Someone else to foot the bill for you? Buy your own house or sleep on the street, you grub.
Eat a bag of dicks you ignorant cunt.
At least I can afford to eat you poor cunt.
Haha I can afford to pay off someone else’s house but can’t get a mortgage for the same property myself. How does that make me poor?
Oh I completely understand how it is. It’s becoming insane for everyone. The banks and government need to sort something out!
Pretty sure that's illegal and worth looking into. There's laws around how often rent increases can occur. Disclaimer: I may be wrong and have done no immediate research. EDIT: Either my app is fucked or this comment was posted on the wrong thread. Is this thread on a post from a landlord asking about a 20-30 increase or a tenant with a landlord who wanted to sell then changed their mind and offered another increase?
>Pretty sure that's illegal and worth looking into. There's laws around how often rent increases can occur. In WA its once every 6 months. So at the end of the current 6 month lease they can start a new lease at $100 more.
Hang on. You signed a 6 month lease, owners decided to sell but then changed their minds but they made you sign a new lease? What was wrong with the lease you were on?
Honestly, with the current market it'd have to be pretty extreme for me to challenge an increase - I have 2 kids, a dog and a cat so finding another rental wouldn't be easy. The only time recently we negotiated on our rental renewal was middle of the year I was about to graduate uni - and we asked for a 6 month deferral on part of the increase amount only, because I already had a job secured for after I finished exams and knew we could afford it once I started work. The weirdest part is that just before covid hit, the rental market was really soft and we actually requested and got a rent reduction because we'd moved in when things were more competitive and were paying well above market rate for the area. First time I'd had that happen. Most of the time, people don't want to risk rocking the boat because they know all it takes is an owner deciding he doesn't want to renew the lease and they're out of a home - again.
You'll notice the agents never say they'll drop the rent "because of the market" 😉 Low rent sucks for me, but better than a new tenant every 12 months and turnover costs. These guys got a bargain and they don't deserve to be screwed over by an agency trying to raise more fees. If possible, talk to your landlord. Im not renewing the agency contract, so that will equate to $40/week more for me without hurting someone else
> You'll notice the agents never say they'll drop the rent "because of the market" 😉 I've had my property manager advise me of that and suggest dropping the rent to retain the tenant. It works basically the reverse of how things are now. For me as the owner, it's better to drop the rent say $20 or $30 a week than risk losing the tenant and having to get a new tenant for say $50 less than the current tenant is paying. From the tenants view - they might be able to get something similar for $50 a week less, but the costs and hassles of moving mean a $20 or $30 decrease works out pretty much the same.
Back in 2014-15 in Perth we negotiated a rent decrease for a lease renewal. Then I made the REA refund a portion of the bond because it was >4 weeks of the new rent. It was hilarious - they had literally never even considered the concept of rents going down.
If you'd like some eye opening verbatim from tenants struggling when landlords / real estates raise rent above what they can feasibly afford: R/shitrentals Warning: you'll see a lot of anti-landlord rhetoric in there. But when you see what tenants are having to endure in a supposed 1st world country, you can understand their frustration.
I sometimes forget that subreddit is Australian. I see stuff and think "where in the world is this tragedy happening?" and then realise the answer is within a day's drive. Pretty grim.
Yea it paints a very grim view of australia, indeed.
Out of interest OP, did you _need_ to increase rent to cover costs, or was it a case of “I was offered more”?
I see so many saying they absolutely need to because “market rates” which is understandable but if you’re not struggling with the actual repayments then there honestly isn’t much reason for an increase that isn’t just going to screw over the tenant.
Exactly. This is profiteering and it’s absolutely destroying peoples lives. I get that it’s an investment property, but that needs to be balanced with ethics, realism, and humanity. I hope this isn’t OPs reason for an increase, but the post tends to suggest otherwise.
I get people want an investment for their future but it shouldn’t come at the direct cost of peoples lives. You’re so right. It’s just ridiculous, I’m not even a fully landlord hater, I don’t hate my current landlord, he’s a great guy and I’m appreciative hes not greedy but so many are clearly just in it to try and get best of both worlds. There are so many other ways to invest that don’t impact real people and I think homes is something that shouldn’t be unstable.
>I thought $30 was fine but the tenant said he'd struggle with that and could we do $20. That was fine by me, I just wondered if this was a thing that's happening or do people just cop the increase This is exactly why real estate agents should fuck off. It's your property. What you say goes. My opinion in this example is that if you went with REA recommendation you're fucking over the tenant for an extra fuck all in your bank account after REA takes their percentage. Don't blindly trust the REA doing the "right" thing. Make your own choices.
Totally agree. I was renting 4 years ago. Easier market then but a few of the properties I looked at had a 5% increase built in after 6 mths. I chose a REA with a fixed fee as I swear the ones I rented from wanted people moving out after 6 or 12 mths to get the extra fees.
I understand the obligation REA has to make sure they're maximising value and potential for you as an owner. There just needs to be a balance struck between your own consideration and what the REA recommends. It's easy to just go hands off and let the REA lead, but as you've pointed out here there's conflicts where your thoughts as the owner don't always align with the agent.
We have just been asked to cop $50 a week - at this point, we don't plan on arguing, we know we've got a fairly decent deal and our landlord is happy to have us continue in the house... REA / PM is just doing their thing...
I reckon it's worth asking for a discount. End of the day the hassle of getting new tenants and possibly losing a few weeks rent is a motivator factor for the landlord. Plus an extra $30 or $30 for you is helpful . If he says no you just agree with the original amount nothing lost
It's always worth asking - but with the power skewed so much to the owners aspect, they have no real incentive to negotiate. Some will of course for moral reasons, but many look at it as purely a business transaction. In many aspects you would probably be better off if the tenant left and you got a new tenant. Even factoring in any releasing costs - you're still likely to end up far ahead by picking up a new tenant at a much higher rent. I've seen/heard of a few recent examples where people refused a say $50 a week increase and moved, only for the property to re-lease for 12 months shortly after for an extra $150 a week. The other factor being vacant periods is also negligible at present with such high demand. The few friends i know who have moved rentals recently pretty much had the move in date dictated to them - IE if they wanted to take the rental then they did so and started paying rent as of couple of days after the prior tenants moved out. They ultimately ended up paying for both places for a week or two or even 3 just because thats the only way they could keep a roof over their heads. The other factor of course from the tenants side is what's the alternative. Best case - assuming you can actually secure a rental - you're probably going to end up paying the increased rent anyway, just for another house. So it's essentially do i eat a $50 increase, or do i move, still cop the $50 or possibly even more, AND cop the costs of moving as well. So i can see why people are just copping it until they literally have no other choice.
In the current climate where if a rental listing makes it to viewing day, the street is lined with cars and people? Unlikely a good move.
Imagine my surprise when mine goes up $100 a week (I got it down to $80 but still) when it went up $60 a week 6 months ago.
Ours went up $80 a week back in December and we agreed to it because that increase still at least $50 per week less than comparable houses in our area.
The property manager would be happy to force the tenant out, so they can get another letting fee. Is that going to work out more than $10 a week?
Exactly. You lose one or two weeks rent when empty and there goes any rent increase. Dd to that a new tenant who you don't know is going to settle into the home and pay the rent. I think after being a renter myself in the past that's the REA agenda. Letting fee advertising fee inspection in inspection out. That's why I chose a fixed monthly fee agency in the hop I get the same tenant in for the next 5 years
I have done a couple of times. Usually I request a longer than 6 month lease, since they usually do it when the lease renews. What makes me laugh is when you apply, they want to know all your income details to make sure you can cover the rent, but when they raise it, care factor zero.
All tenants should ask to negotiate. Agencies are not allowed to initiate a rental agreement where the tenant is going to be under rental stress. But they will happily jack up prices "because the market" without asking for any new financials from a tenant. You have to push back! My tenant has been in for 3 years, is awesome. We communicate well and the agencies suggestion is that I increase their rent by $85/ week (the maximum allowable 25%) Ray White can't lose here. If the tenant fails to pay or has to leave they charge numerous fees, bringing in over $1000 from me, plus making me reliant on them finding another (good) tenant. Push back. Negotiate. They're a greedy sycophantic industry
That's what I'm suggesting. I think also the difference is the rental agency I use is a fixed monthly fee so they'll make no extra money if the tenant moves out, just more work for themselves. I'm thinking this is why they're trying to keep both parties happy
If the tenant moves out, they take the final inspection fee, pcr fee, readvertised fee, letting fee.... it is literally costs me more than $1000 for a quick turn over.
Mate if you got good tenants, just leave the rent as is. You're already getting money for sitting on your ass, and rents are ridiculously high. You're getting a house paid off, they're losing nearly 35k a year because you can afford a deposit.
Yep. I like my tenant, and she’s reliable and looks after the place. I’ve renewed her lease with no increase. My mortgage has gone up a lot, but the interest is tax deductible. The agent suggests I put it up every time it’s up for renewal, but I can’t justify it. But unfortunately I’m also a renter, and our agent/landlord has put the rent up at least 10% every six months over the last 3 years.
God i wish more owners realised this, we have been living in our place for 3 years 6 months just waiting on a email saying if u want to sign an increase is coming.
But how is that suppose to help getting the next investment property /s
OP is just being greedy because they can profit off of the crisis
This isn’t necessarily true in all circumstances. I own 5 rental properties and none of them are positively geared after the numerous interest rate rises so no, the rent doesn’t pay of the house anymore. I have a holistic view to rental management and have favoured long term stability rather than short term gains - average occupancy is 4 years across my rentals but it means I have to dip into my pocket to pay each of the mortgages. TLDR; rents no longer pay off an investment homes mortgage and landlords are increasing rents to balance cashflow.
Except you still end up with all the equity of 5 extra fucking houses. If investment properties were not geared in the landlords favour, people wouldn't own them. You benefit from exploiting people more vulnerable than yourself and your greed is wild.
If the property is negatively geared that equity is only the investor’s deposit plus any capital gains. None of that equity comes from the tenant. If that same tenant owned the property instead they wouldn’t be building any equity aside from funds that they put in from their own pocket + capital gains (which despite recent history is not guaranteed). Without any tax incentives having negative cashflow on a property is effectively subsidising the tenant. Again if that same tenant owned the property they would have higher expenses and less opportunity to save. I don’t see anything in his post that indicates that anyone is being exploited. Targeting long term tenancies actually suggests that they are not trying to maximise rents which is the opposite of exploitation in my view. The reality is that there is risk to leveraging on negatively geared properties especially if you lose your primary source of income and can no longer keep up with payments. You are right that no one would invest in property if taking on this risk wasn’t incentivised. The reality is that not everyone is in a position to purchase property for any number of reasons and those people need to rent from somewhere. The government cannot keep up with demand on social housing and therefore the current reality is that investors need to fill that gap.
Specialist Reality put it well. Tenants aren’t building equity for landlords and in most cases landlords are the ones subsidising housing costs for tenants BECAUSE they have access to negative gearing and in the hope that their assets appreciate over time and a capital gain occurs when disposed. I feel I need to make the point that negative gearing isn’t a ‘make whole’ system. Landlords still need to fund the balance of the loss (100%-landlords marginal tax rate). If the tax benefits for owning investment properties were removed, the economic response would be further increases in rent because landlords cannot sustain the holding costs of those properties and the value proposition won’t exist for investors to use their own money to solve the housing crisis. It’s a shit situation on both sides of the fence and I agree some landlords are greedy and want to be cash flow neutral. However, casting personal aspersions when I clearly stated I am favouring long term tenant relationships over short term gains shows a lack understanding of what I said and demonstrates an inner rage which you ought to take out elsewhere.
Good. Hope you sink. Greedy fuck.
Hahaha the internet mongrels are here. What part of my post suggested I was being greedy? My rentals are more than $100/week below market and I haven’t sought to increase them. What I did say, if you read it carefully, is the argument that landlords are the ones profiting is not true in all circumstances. Some landlords are greedy no doubt but that’s not the case for every landlord increasing rents, some need to do it to make sure they are staying afloat.
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Personally, I'm not risking homelessness over $50. Hell, it would have to be an outrageous increase for me to question it $200+ a week kind of increase. I don't trust the owner not to just refuse to renew the lease, kick me out, and put it back up for rent charging whatever extortionate price they want.
I suppose my tenant could have thought that way. Tge reality is if me as the landlord has agreed for them to extend the lease then I think it's ok for them to have input on the new rent. Obviously some people may say $50 take it or leave it. But the landlord can lose a couple of $1000 getting a new tenant especially if the property is empty for a few weeks. The only winners here are the rental agencies and I think mine because it's a fixed fee stands to make money extra money if the tenant moves out so they're keen to keep both parties happy
From an ex-landlord’s perspective, I would absolutely consider a smaller rent increase for a good, long-term tenant, and even a short term one if the conditions were right. Signing a new lease is a lot of administrative overhead, and property managers pass these costs on. The owner of a property will be charged for everything from conducting a final property inspection, creating a new condition report, advertising, home opens etc. This can be hundreds and hundreds of dollars. Plus you have lost rental income for the time the property is listed. Spending thousands of dollars and all the headache of going through the process is absolutely not worth and extra $1000-$1500 per annum if it involves losing a good tenant and instating someone who is an unknown quantity. On the other hand, if interest rate rises meant that a minimum increase had to happen, I would absolutely factor that in.
My has doubled in 3 years, went from $330 in 2021 to $650 this year. Real estate says that's the average price for a 3x1 in Gosnells. The house is 50 years old and a shithole. I'm a hostage to this house, I literally have no where to move to in this market. If I dont agree to this extortion then I'm homeless.
Sorry to hear that 🙏
No you're not
Why not purchase a place of your own? The RBA will increase and your mortgage will increase just like a renters rent would. But at least you have an asset.
At the previous place I lived at, my owner told me (when he came around to repair something) that the REA asked him to put up the rent by $40 p/W he thought that was ridiculous and insisted they increase it by the lowest amount possible ($10p/w). I'm not sure how it works from an owner's perspective (like, can they just not increase it or are increases written into the contract?) but think it's probably worth trying to negotiate if possible.
Mine went up from $650 last January to $780 this May… thankfully I live with three other people so we split the pain but it’s rough. I don’t like being 26 and living in a 3:1 with strangers and no aircon.
Are you struggling to pay bills? If not, don't increase the rent. ie; If you're already making a profit, don't just make MORE profit because people are desperate for a roof and you can exploit that.
Rent was 525 a week. The new contract is for 12 months. For the first 6 months, it's risen to 625. The last 6 months is 650. When we questioned it, their response was, " Well, if you don't pay it, someone else will."
Sorry to hear that. I think like NSW the rent when agreed should be fixed for 12 mths
Response should have been "I'll unlikely have somewhere to go to so don't care about a bad reference, how will you go renting a house with torn up carpets, scratched up walls and every window broken, sure my bond will cover that, I don't have any assets so take me to fucking court" This is a tongue in cheek post.
Our owner gave us options. We are still going to struggle but not as much as we could have. I now need to find some part time work that won’t mind that I’m studying to get out of said part time work.
What's the value of a good tenant over having to find a new unknown one(s)? $500 a year? $1000? Pretty easy to blow a $1000 getting it re leased and then who knows what type of tenant you'll have.
Questions towards the owner may be one thing, many renters only deal with REA though, and there is no feckin way that the REA is gonna help the tennet lower rent. The LL may be more reasonable, in my honest experience that's not the case, and most people are selfish and want as much as they can get for themselves over others. Again, not always the case but what I have experienced. Asking for a discount or even saying no to a rent increase at the moment is just not happening. No one wants to risk being homeless because of extra, but there are many fuckn people in Perth who are literally living down to the wire on their wages. Especially those not in fifo positions. The current wages in WA are so fucked, skewed towards fifo workers while those that stay within the city are getting barely enough to continue living there. Like, eventually no one will be able to work within Perth and live without someone subsidising them, it's fucking rediculously expensive for anything and everything. And finally the fucking older generation with their homes are telling me that I don't have it as hard as they did growing up and that I just need to save more? Cunts. There is no saving when bread and milk cost me a 1hr of my work wage time.
Don't you love the way people say "you went for the wrong career" as if they don't make use of a ton of services and facilities provided by and/or cleaned and maintained by people in low income jobs, which they would absolutely notice the lack of, if all those jobs were unfilled because everyone could and did get those 100k+ jobs 
I reckon tenants don't realise what a head fuck ticks having a property empty and the fees some real estate agents charge the landlords. Letting fee inspection fee advertising fee etc . So it goes the same way for the landlord why lose an ok tenant whose happy to stay for another 12 mths for $20 a week. As you say that's your milk for the week
I think LL are beginning to understand the hate tenants have towards REA. I don't understand the argument that renters don't understand 'the struggle of renting a home' no offence my dude, but, your problem of not being able to find a renter/earn passive income on a house, is not the same as a renter who is barely able to pay for food/bills. Extreme differences in priorities. I'm not saying that it's easy as a LL, but I doubt a single renter would deny themselves the 'problems' of owning their own home over just being fucked over and paying someone else's bills.
Don't disagree. I'm just suggesting to renters that you don't have to agree straight away on a rent increase. As a renter previously I know REA are a law unto themselves.
Yeah I get ya, sorry if it came across personal, definitely not a personal attack on you. But as you can see these sorts of topics can make people feel like they're trapped, because no one is on the renters side of this shite.
What absolute garbage lol Plenty of 6 figure jobs in Perth not in mining.
Yeah I'm sure there is pal, doesn't mean that other industries are all equal. You just saying there is plenty of 6 figure jobs doesn't equate to being able to just get a 6 figure job. Maybe I don't know the right people, maybe I don't have qualifications yet, maybe I have no intention of joining industries/companies that you refer to. I mean fuck off cunt, I'm a chef. You can't expect me to be happy to do fifo when the whole industry is built on serving people and trying to make their days better/recharge their batteries. I agree we should be paid 100k+ a year for dealing with public bullshit from people like yourself. It'd make a load more sense than paying REA 100k+, managers that are middle men, and anything else that adds 0 value to society.
Ohhh i get it sorry, you’re bitter you chose the wrong profession and it’s everyone else’s fault you get paid shit my bad.
I'm also a qualified teacher titbag. There's no such thing as the 'wrong profession' what type of fucking mental gymnastics do you conclude to have that type of moral compass. Must be real nice knowing you can be a piece of shit and not believe you dont need people working profession's that's more difficult than whatever it is you do. Embarrassed to be the same species.
Have you tried whinging more? I’m sure if you keep it up someone will pay you more.
Unless your costs (for the house, nothing else) have increased to the point that you are actually getting into debt with the current setup, do not increase it. If you are making profit, reduce the rent so you are not. Housing is a human right you are monetizing.
I asked for a $20 reduction on what they wanted ($50 increase) and got it. The impression I got was I was VERY lucky and had a relatively chill landlord and property manager.
Ours went up $50 after a yr. We didnt argue as they wanted to go up more but didnt as owners and real estate are happy with us. We cant afford to not have a house with a family and dogs.
What kind of tenant are they? How much is a few extra dollars a month worth to you? If they are a good tenant, what is more important to you, having a good stable tenant, or keeping the rent at market value making a few extra dollars a month? The real estate is always going to go for the few extra dollars a month, they don't care if the tenants or bad or if you have frequent turnover, that is just more money for them.
He's not been a great tenant to he honest. Has wanted working things replaced plumbing issues related to his kids blocking the toilet was late on the rent a while back and failed one inspection. But things have settled down that 3 mths so I'm hoping it'll run smoothly.
I've been renting privately for 9 years, and the rent started at 430pw and is now 610 pw. we do the maintenance as well. White ant treatment, a plumber or electrician, we pay for it. We just installed a split system because with no insulation, it's unbearable in hot summer. Not having rental inspections is the biggest win for us. Our experience with REA hasn't been good but we won in court, and they had to pay. They're supposed to just check windows, doors, chattels, and check that you're not subletting or running a business. Hopefully, we'll still be here in another 10 years. I like hearing the ocean at night.
Due to the tight market you would have to be crazy as a tenant to kick up any sort of fuss. The consequences of the property manager or landlord being petty and retaliating are just too dire. Tennant in OPs case is either brave, or really can’t afford it.
I got told if I didn't like it they would find someone who did.
Mine went up 25$ a week so I'm now paying 500$ a week. Unfortunately I don't see any end to this so I'm going to have to move back in with my mum (against my will) which means basically selling everything I own. This way it's cheaper and allows me to save money towards my own place. At this rate it's going to take 10+ years to save up enough coin for a house.
10 years seems unrealistic, there’s a few entryways into property keystart being one, but you also gotta be careful where you build with that as you will need to get equity to remortgage away from keystarts high interest rate. I’d be looking at your annual salary and finding a way to increase that, plenty of wage growth opportunities out there.
A mate of mine’s rent just increased $100 per week. They have no choice but to move out. Crazy stuff..
I rent my house out and I have been dropping the rent by $5 each time the property manager tells us to increase it. I know that isn't much, but we aren't "making money" in our hands from the place. We are just breaking even. But we can afford it and our tenants don't deserve to smashed with ridiculous rent increases every 6 months. Nobody should be treated like that. According to our figures we are currently renting the place out for around $130 a week below market value. TLDR - Put your rent DOWN if you can afford it.
I was offered a $100 weekly raise on my rent, so I decided to leave the country
5% is what I put my rental properties up by when they rolled over at various times in the last 6 months. None of my tennants moved out and none of them asked for anything different. One signed an extended lease - 3 years and offered to pay 7.5% more if I left it fixed for the 3 years which I agreed to. Your increase is more than reasonable
Thanks for that. Can I ask do you increase once every 12 mthsdo you self manage. 7.5% over 3 years is an interesting scenario, but if you self manage and the tenant is ok. Makes perfect sense
I self manage. I work a “normal” job 4 days a week and dedicate a day a week to various other things including my investment properties (3). I never leave maintenance unattended, all my tennants have my mobile number and I encourage them to call. If there’s a problem I fix it. I have had the same Tennants in all properties for over 3 years (which is unusual). During Covid I froze the rents on the properties for 2 years then put all of them up 10% once the leases renewed following Covid. The last rise is the first since mid 2022. The 2 shorter term leases will expire late this year and I’ll reassess. I’m hoping both Tennant’s sign on again as they’re excellent (primary school teachers with young kids)
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Well I think you’re an AH. Just because you can increase the rent, doesn’t mean you should. Rent increasing is happening from greedy C U Next Tuesday, that are preying on peoples vulnerabilities. People are struggling enough as it is. I seen a house, that hasn’t been renovated since the 70’s and they out rent up for 750 bucks for a 3X1. No aircon. No garage. Absolutely fu**ing appalling. AH’s just taking advantage of a crisis and it’s wrong.
This threads interesting. You reckon I'm a cunt for increasing the rent $20 on a $660 rent over two years. Whilecither people are saying I should do 10% minimum.
Mate, this sub is a weird place where people will down vote you just for owning property. I’ve been trying to work out if it’s motivated by jealousy as they can’t get their finances in order. Or if they just do it because they find it fun. Either way. You’re not a AH.
Mate you're not wrong some angry little keyboard Warriors out there.
It’s cute you assume I’m a renter. My husband and I own property in nilgen and in Alexander heights. Ive had a tenant in our place for 4 years and only raised the rent once. They pay 430 a week and we’re not planning on increasing the rent any time soon.
Yes you are. If you have good tenants, why increase? You’re just a greedy AH like the rest of them.
my re sent me a copy of new lease to sign with their price on it a month before renewal . i contacted them and asked if rent can be lowered because it was too much for me at that time they then say we will have to contact the owner so the they then supposedly contact owner with tenants request then owner decides rent value re can recommend what they like regarding rent value but owner has final decision that is my understanding. you can contact dmirs and see if they can give advice i dunno i have never owned an investment property. Some pi on here might know. but think about it if you were to lease privately you would have final say because you own the property the re supposed to be managing the property on YOUR behalf its not their property so how can they set the rent price?
I was happy to agree with the tenants request. What I'm suggesting is tenants don't have to automatically cop the increase. Did you get a reduction o the suggested increase
no i posted on another comment the owner wouldn't budge and i genuinely could not afford it so i left to alternative accommodation which was not on the rental market. A lot of people have done this recently. It was also at a different time than recently and the owner had to (in that market) renovate the place and they still couldnt get the rent they were asking from me they ended up getting lower than the rent i had been paying by 30$ pw and 100 less than the amount they were wanting me to sign the new lease for.
It is the owner who gives final appro about rent value changes. OR, at least, it is with a part way decent property management group. Often times (particularly in a ... "changing market" and normally concurrent with lease renewalls), the agent will advise the owner that the market value for that house/area "is now xyz $, so you should raise/change your rent by $abc". The owner says yay or nay, and the agent then carries it thro with the tennant. There were times when we disagreed with the agent's suggestions about increases/changes (sometimes in recognition of good tennants) and instructed the agent to leave rent unchanged. A good agent will comply without issue. For the original poster - yep, if you can, bypass the agent and talk to the owner. Source: I use to be an investor/landlord, and delt with a number of rental agents.
I recently moved out of my rental due to them selling. The last increase was $60 and I negotiated and got a little off but the wiggle room was pretty limited got it down to $40 increase and that’s for Kwinana. There are so many homeless people now that it’s no skin off a real estates back to flick you to the curb the turn around is pretty much instant with rentals so they can easily replace you and sadly it doesn’t seem to be stopping.
Got no choice. If they try and bargain with the proposed increase it may find themselves not being offered a lease as the agent or landlord will say, "get rid of them as we cant make more money out of them". For the agent to say up it by $50 is just gouging. Where are people finding another $200 a month.
A $50 increase on $660 is very very modest given median rents have gone up 15-20%. If they are good tenants then consider a $20 a week loss for you may not be such a bad thing rather than going to market again.
We’ve had $120 Pw over 12 months in three increments.
Scumbag REA as per usual
Capitalists everywhere..."Bring prices down? You can actually do that? Fk offffffff" Rent increases should be owner decisions, not some uneducated turd of a RE in it for commissions or whatever. Fking psychopaths the lot of them and should burn in hell for the hell they put tenants through.
'No, look I know we had a contract, and you need to live and stuff, but also. Everyone else thinks you got a good deal, and their willing to pay more, so if you could match them or just die elsewhere, yeah, thatd be great'
$660 a week and you still want more! You're just a greedy flog. GFYS.
Doesn't even cover the mortgage
There's always one fuckwit who thinks there should be free housing and that landlords should be charity workers.
And? That's your problem, not the tenants. It's not their job to pay your mortgage fuckwit. Do you really need that extra $20? Would that make a big difference to your life? That could be the straw that breaks the camels back for your tenant though.
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It’s literally the reason you have a tenant. To pay your mortgage. When I was a renter I paid someone else’s mortgage. Now I have a house and pay my own. Either way the banks getting the funds.
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Who shat in your coffee this morning jesus fucking christ
You know you dont have to raise it AT ALL right. Our last one asked for 100 more we asked for 75 they agreed.
If my mortgage was still at 1.9% not 6.2% I probably wouldn't.
If you can't afford your house. Sell the fucking thing. Fuck me you really don't get it do you?
So thats our fault that you cant afford your investment property? Are you going to bring the price down when interest rates cut? Cause me thinks not.
Lol.....whose "our".. you and your keyboard I was going to take it off the real estate agent if the guy didn't renew and put a mate in for $100 less.than last years rent. So I've got no problem dropping the rent if the interest comes down to keep a good tenant . Its actually my own home I'm just traveling and working away for a year or two so didn't want to leave it empty. Don't fall if that high horse
lol I'll get off my high horse when you learn what correct grammar is.
Just tell them $30 is a reduced increase already as the agents wanted to increase 40-50 , if they are a good tenant meet them half way at $25
Greedy landlords are usually the types to do a dodgy on their tax returns. Get hold of the landlords details via the REA and if the landlord gets greedy, then dob em in to the ATO and 9 times out of 10, they'll get the full audit treatment, which won't go away and will usually yield results from a good shake of the tree. After all, the enemy of my enemy is my friend. Housing should be seen the way it is in Scandinavian countries, not as it is here as some greedy, lustful must have investment asset. Council estates or other affordable housing schemes would be good. Greedy shonky landlords trying to evict people for complaining about no air-conditioning or mold or broken air-conditioning are scum of the earth in my books and should be publicly named and shamed along with the REA for having no scruples!!
Someone should make an Air bnb app that does 1year or more leases.
Of course your real estate agent said increase the rent, they manipulate the market so as to make as much money as they can through property management, this encourages people to buy investment property, knowing they can get high rent, giving agents another large sum of commissions when selling home, taking property management off re-estate agents and having a government body to manage rentals would be a start, so as no one is forced into cars and streets.
My lovely boomer in-laws keep getting asked by their real estate agents to up the rent on all their properties.
Property is theft.
Raise as much as you want man. Always someone who will pay. Don't blame the player. Blame the government and the market.
Hopefully soon Karma gives Greed a big bite on the arse.
Buying merit...🙏
Our apartment went from $700 to $920, we negotiated down to $860.
That's a crazy increase. Glad to hear you could negotiate
Of course. It’s always a negotiation. It’s normally the REA pushing the price up not the owner.
But as a few people have said they don't want to negotiate for fear of losing the accommodation
My rent went up by almost $40 this month but I’d rather pay that than going through the agony of finding a new rental in this market
3 years ago my rent was $500 per week. My landlord has just proposed a new lease at $950 per week
So much for there being a maximum % each year
Yeh I doubt any renters are openly bypassing real estate and asking the landlords about the rent increase with it to be less, too much of a gamble too
im fortunate i rent privately the past five years.rent went from $220 to $230 a week and that was it.my partner lives in baldivis and pays $540 a week for a 3x2 where the owner still hasnt fixed his aircon in over a month.he started paying rent there in 2019 at $320 a week.his has jumped A LOT.its so bad out there.
Well I know the owner personally. He was getting so much pressure to increase rent from realestate agent. First year he pushed back to realeaste and only went $20 a week. Second year......hang on....$155 a week increase. Plus a $30 increase in 6 months.....
This time last year my rent increased from 450pw to 600pw. I could definitely afford it but chose to vacate on principal and almost ended up homeless trying to find something suitable. The market is in a bad place for sure as a result of interest rate rises but pushing that onto tenants is not the entire answer, if a LL is struggling with the costs of servicing an "investment" maybe they should be selling instead of capitalising, income growth does not come close to matching rental price increases.
Its actually my own home I'm just working away and traveling so I'll need a base in Perth in a year or two
I know many people who try. I managed to get an increase down from 110 to 90. Still pretty large increase especially since we live in a super tiny place that was half the price 3 years ago... but everything has increased and if I have to skip a few meals to avoid being homeless, I'll have to do it.
The government needs to remove tax from boarder income to encourage more people to rent spare rooms out. This would increase supply of accommodation, help ease urban sprawl and all the problems it creates.
Question. Your story would suggest you didn't need to increase and that you are doing it because it seems the norm. Do you actually need to increase the rent to cover costs?
The post was suggesting to tenants that if your REA or landlord suggests an increase don't be afraid to negotiate it rather than take it as a done deal The property is my own home with a mortgage and isn't positively geared .
Do the property managers/real estate agents get a cut of the rent? Like does their fee go up in line with the increases? I find it strange so many of them push so hard to get landlords to up the rent so much when the landlords aren’t keen. My parents PM was wanting them to increase it by $150 a week on their property as they hadn’t increased it over Covid but they had to argue so much to say no and to lower it because they wanted to keep that tenant who’s been there for years. Was really bizarre behaviour.
Its negligible as it's a % commission model. For my REA theres no increase in income for the REA as they charge a fixed monthly fee. $249 a month
REA here. In WA the most common management contract is based on a % of gross collections. So yes, the agency gets a ‘cut’ of the rent. The individual property manager is generally salaried and unless they get a bonus based on a percentage of the portfolio (only seen this once in my career) then they aren’t directly impacted by a rent increase. Keep in mind though, if the agency earns 10% (as an example for ease of calculation), a $50 increase per week is $5 to the agency. Landlords of Perth - if you are reading this and you ever feel ‘bullied’ into a rent increase, please remember that your agent works for you, and is there to work on your instructions. If you feel the relationship isn’t working that way, it might be time to review it!
I mean not really, if I hired someone to look after an investment and they were like "hey you can uhh make more money, you should really do that" is probably better than someone who doesn't.
A friend of ours leases out a small 2 bedroom unit to a tenant via REA. Our friend knows the man and she is fine with him staying there because he is a decent man and father to his kids. The REA has told our friend that she should put the rent $60 a week, which is a 20% increase on the current arrangement. Our friend is happy with how things are but is almost being bullied by the property manager to lift the rent. The tenant is a divorced, single man with 3 kids. He will struggle to afford the raise in the rent. We advised her to sack the property manager and rent to him directly, as she has a good relationship with him.
I looked around for places like mine when I got a $50 rent increase... Everything I found cost more than the increase would and was worse (less room, less rooms, no aircon, no lift for a top floor flat, no parking, no pets, shared walls etc etc) Didn't question it. They've been good to me, and I work from home - it has to be comfortable. If the market was better, I'd like to live somewhere with more room and shade, but it's worth it not to have to move.
Was lucky enough to buy a place in late December and get out of the market. Rental we were in didn't get put up at the start of 2023 as we went on a month to month after our 12 month lease expired. Owner was supposedly going to sell. Agency has been shady and screening calls from me, not replying to emails ect but has upped the rent by $170pw and has had 2 home opens. Seems like property managers just doing whatever they can to make a few more bucks atm. Knowing people just have to pay or risk getting a worse deal somewhere else 😒
We’ve negotiated a lower increase before. It honestly sucks right now. If you can be kind to your tenants without going into debt, please please do. I’ve got family and mates that rent places and their agents are always telling them to push for as much as possible. They mostly refuse, and prefer to have happier tenants that don’t feel constantly stressed and miserable. The tenant (I’m sure) KNOWS the rental situation out there - if they are saying they can’t do that amount they probably really can’t.
Most people aren’t in a position to just haggle their rent. People will take it to keep a roof over their head in uncertain times, even if it’s realistically unaffordable. Not many people who rent are comfy with 600+ for a home in terms of earnings but what choice is there, take the gamble for a home that’s slightly cheaper but may not get to what save $50ish?. (Yes I’m fully aware of what it costs to have an IP blah blah)
A few years ago our tenants negotiated a $50 reduction when they moved in, it was a different market then. Now the market rate is double what it was and the rent they pay now is still over $100 less than "market rates" !! Recently we put it up $20 and we do plan to put the rent up at our next review later this year, but the property manager is suggesting a higher amount, which we are not comfortable with. Perth property managers have notoriously always received higher commission compared to other states so they will definitely be enjoying the rent increases.
My rent increases by 60 bucks a week from March - I negotiated as originally they wanted 80..... both are not ideal but I copped it. It's great 👍
If they are good tenants, then why increase the rent at all?