To protect the owner’s investment, it is critical to keep the rental in line with the current market through regular rental reviews. Some owners fear that this process can cause them to lose good tenants. This is not the case.
Why Do Tenants Leave?
Good tenants invariably leave a rental property due to;
• Relationships – they move in together or they move away from each other
• Location – they move closer to work/family – another suburb, another city, another country
• Accommodation – they now need more space or less space
• Pride – they don’t like the way they are being treated by the Agent or Owner – ongoing repair issues, poor communication etc
They don’t leave because the rent is being maintained at ‘fair market’
They don’t stay just because the rent is ‘below market’
Over time, rental values historically tend to gradually climb in Sydney. During periods of high demand, this increase in rental values can be more rapid. It is important therefore to review rents often and keep existing tenancies in line with the rising market. Steadily increasing your rent at yearly intervals to maintain an up to date market rental:
• Maximises your return
• Avoids the need for sudden, large increases which can cause tenants to move out
• Protects the sale value of your property should you decide to sell. Investors look closely at the rental being achieved by the property as a guide to its likely return
Rent reviews are conducted routinely as part of our routine inspection process, occurring two to three times per year. Each time your property is inspected a review of the current market rental is also supplied. This doesn’t mean rent is adjusted as frequently as this. We simply actively review how the rent being paid for each property compares to equivalent properties in the current market. Typically rental increases are undertaken annually to keep pace with the market while maintaining positive relationships with quality tenants.
We never change rent without consultation with the Owner.