|Rent reviews are conducted regularly by any good property manager. Whether the rent needs to be increased or not, they will typically review the rents on a six or twelve month basis.
While we review our rents every 6 months to ensure that our Owners are getting market rent at all times, I personally think January is a great time to undertake the bulk of our rent reviews as. The reason for this is that demand is always a lot higher in the summer months and with the school year about to start there is generally a lot of people looking to get their children into zone. More demand means less available stock, this means that Tenants are less likely to move for the sake of a $20 increase.
|We also get asked a lot if the rent can be increased during a fixed term, the answer is yes so long as the Tenancy Agreement provisions for it. But just remember that rent can only be increased every 180 days and for periodic tenancies you must give 60 days notice for the new rent to come into effect.
Even if you have a fantastic long term tenant, I would still recommend increasing the every year, but possibly at just 95% of the general rent market value. This can be seen as rewarding loyalty, and from the owner’s prospective it provides consistency of cash flow and confidence that their capital asset is being maintained. Sometime taking $5 to $10 less a week in order to retain a good tenant will cost you less than what it would to get a new tenant in that may not maintain the property to the same standard.
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