As a landlord, should you increase the rent?
Here’s a question we get asked all the time, here at Garry Dunn Property Agents. “I’ve had my property leased to the same tenant for a couple of years and they have just asked for a rent reduction, I was hoping to put the rent up – what do I do?”
In a changing market where vacancies increase, there is sometimes warranted pressure on rental yields, especially with the construction boom we are going through resulting in an increase in supply.
That being said, moving is an inconvenience and I don’t believe tenants move unnecessarily! Building a good relationship and being able to have a conversation with your tenant can go a long way to resolving this before it starts, or leads to a vacancy.
In my experience if a tenant moves within close proximity to a similar property, they don’t feel they are being looked after.
For example, they make requests to make the property more comfortable for their family, like requesting flyscreens to be able to open the windows or doors or continual repairs and maintenance falling on deaf ears. As a landlord, it’s important to keep on top of property maintenance so small things don’t become large renovation and to keep a tenant happy!
Moving is not cheap so to move out for the sake of $10 or $15 is not the real reason most occasions.
Sure people change jobs, families grow which is unavoidable but having good communication channels open and maintaining your property will go a long way to keeping good tenants for longer!