Carnelian Property Management Newcastle
  • Home
  • Contact
  • About
    • New To Renting Your Property?
    • Info For Experienced Investors
    • About The Team
    • What We Do
    • Testimonials
  • Suburb Profiles
    • Adamstown Suburb Profile
    • Cameron Park Suburb Profile
    • Cardiff Suburb Profile
    • Charlestown Suburb Profile
    • Hamilton Suburb Profile
    • Mayfield Suburb Profile
    • Merewether Suburb Profile
    • New Lambton Suburb Profile
    • Newcastle Suburb Profile
    • Wallsend Suburb Profile
  • Rental Appraisal
  • Switch to Us
  • Now Renting
    • Properties For Lease
  • Blog
We provide expert property management in Newcastle and Lake Macquarie.  Based in Charlestown NSW, we have been delighting property investors with our personal, professional service since 2011. If you find this article helpful or enjoyable, please subscribe or share it with someone else who may benefit.

How Can I Increase The Rent On My Investment Property?

15/8/2018

0 Comments

 
how can i increase the rent on my investment property - carnelian property management newcastle
A fundamental aspect of owning an investment property is knowing when and how to appropriately increase the rent. There are many things to consider before deciding to raise the rent, including understanding your legal obligations and how to minimise the likelihood of losing the current tenant.

Why increase the rent on your investment property?

​One of the primary reasons for owning an investment property is to generate income. For this reason, it's imperative that your property is as profitable for you as is reasonable in the current market. 

The amount of rental return a property can generate is influenced strongly by demand for rental properties in the local market which are of comparable size, condition, inclusions, and so on. Many of these influencing factors are dynamic e.g. homes may be being renovated in the local market, commanding higher rents than those left in their original condition. 

Indeed, the location itself may be changing. New cafes, restaurants, expanded schools or parkland facilities may reinvigorate interest in a previously stable area. As demand increases in an area (often more quickly than supply), it is fair to expect rental return will increase. 

Aside from the market appeal of a property, investors must of course also ensure their own costs in owning the property are covered as best as possible. As council rates, mortgage rates, strata levies, and CPI increase, it is reasonable to consider a rental increase. 

When should a rent review be conducted?

​If your property is managed by a professional and experienced property manager, you should be presented with recommendations around rent increases on a regular basis. For example, when a fixed term lease period is approaching its end date, you should be being advised of the state of the market and a recommendation presented to you around the suitability of a rental increase (or reasoning to leave rent stable or in some special conditions, decrease). 

Such recommendations should also be being made by the property manager when there is a change in tenancy. For example, if a tenant has given notice to vacate the property, this should be seen as a trigger to conduct a rental review of the property in the current market, with the opportunity to advertise the property at a higher rent than previously achieved. 

It is certainly reasonable to consider factoring in an increase in rent when there have been changes made to the property or circumstances of the lease also. For example, if:
  • Air conditioning has been added
  • Appliances have been improved e.g. dishwasher added, new gas oven installed
  • Maintenance such as lawn mowing service has been included
  • Pets are now accepted at the property
  • etc.

When can rent be increased?

​While there is no blanket rule which can be applied to determine exactly when and by how much rent should be increased, it is generally advisable to increase rent by small and manageable amounts on a regular basis (e.g. once a year) rather than by a significant amount to play "catch up" with the market after keeping rent unchanged for some time. 

Legally, rent can be increased:
  • If the fixed term lease period has ended and the tenant is on a continuing (periodic or rolling) arrangement
  • During a fixed term lease of less than two years, but only if a term was included in the original agreement. The agreement must state the amount of the increase (as a dollar value or percentage), and cannot be unclear such as "in line with the market".
  • During a fixed term agreement of two years or more, but cannot be increased more than once in any 12 month period. 

Importantly, notice must be provided to the tenant first (see below)

What notice is required in order to increase the rent?

​Before any rent increase can take effect, the tenant must be given at least 60 days notice in writing (plus an extra four working days if the notification is being posted). 

The notice must:
  • Specify the proposed new amount of rent (not the amount of the increase)
  • Specify the date from which the increased rent is payable
  • Be signed, dated and properly addressed to the tenant

Further information around the legalities of rental increases can be found on the NSW Fair Trading website.

How to minimise the chance of a tenant leaving due to a rent increase

​Some landlords are concerned about raising the rent for fear that a tenant may vacate. A property manager who maintains great relationships with their tenants is invaluable in ensuring the transition to higher rent is clearly understood and smoothly managed. 

During a tenancy, the prompt resolution of any tenant queries such as maintenance requests or repair issues, and the willingness to negotiate on requests (such as allowing a pet or installing an air conditioner) will help towards a tenant accepting a reasonable rent increase. 

This level of care for the needs of both investors and tenants is where we excel. If you would like to discuss the rent and management or your investment property in Newcastle or Lake Macquarie, contact us today. 
Let's discuss your rental return
We provide expert property management in Newcastle and Lake Macquarie.  Based in Charlestown NSW, we have been delighting property investors with our personal, professional service since 2011. If you found this article helpful or enjoyable, please subscribe or share it with someone else who may benefit.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Carnelian Property Management Newcastle NSW

    We are a family-owned and run Charlestown real estate agent offering expert property management across Newcastle and Lake Macquarie. 
    ​Get to know us here.


    Want More?

    Build your property management knowledge - get regular tips and advice for landlords and tenants straight to your inbox.
    Subscribe

    Categories

    All
    Adverse Possession
    Advertising
    Choosing An Agent
    COVID 19
    COVID-19
    Finance
    Furnished
    Insurance
    Investment Property
    Lake Macquarie Life
    Landlord Responsibilities
    Lease Terms
    Negative Gearing
    Newcastle Life
    Newcastle Property Management
    Pets
    Positive Gearing
    Preparing A Rental Property
    Property Management Costs
    Property Management Statistics
    Rental Appraisal
    Rental Yield
    Rent Review
    Research
    Routine Inspections
    Saving Money
    Suburb Profiles
    Tenant Responsibilities


    Archives

    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017


    RSS Feed

Carnelian Property Management
1A Chapman St Charlestown NSW 2290
​ph: 02 4062 7458 (tenant / general enquiries)
m: 0407 065 126 (investor enquiries)
Facebook - Property Management in Newcastle - Carnelian Property Management
Instagram - Property Management in Newcastle - Carnelian Property Management
COVID-safe - Property Management in Newcastle - Carnelian Property Management
Subscribe to Email
​Request a Rental Appraisal
Rental Application Form
Lost Keys / Locked Out Policy
​Cleaning Checklist
Submit Maintenance Request
​Tenant Portal
​Investor Portal

Copyright © 2021 Carnelian Property Management in Newcastle NSW | ABN 18 624 074 077. Privacy Policy | Complaint Procedure
COVID-safe - Property Management in Newcastle - Carnelian Property Management
Facebook - Property Management in Newcastle - Carnelian Property Management
Instagram - Property Management in Newcastle - Carnelian Property Management
Subscribe to email
Request a rental appraisal
Rental application form
Lost Keys / Locked Out Policy
Cleaning checklist
Submit Maintenance Request
Tenant Portal
Investor Portal
Carnelian Property Management
1A Chapman St Charlestown NSW 2290
​ph: 02 4062 7458 (tenant / general enquiries)
m: 0407 065 126 (investor enquiries)
Submit maintenance request

​Copyright © 2021 Carnelian Property Management in Newcastle NSW
​ABN
18 624 074 077
Complaint Procedure
Privacy Policy
  • Home
  • Contact
  • About
    • New To Renting Your Property?
    • Info For Experienced Investors
    • About The Team
    • What We Do
    • Testimonials
  • Suburb Profiles
    • Adamstown Suburb Profile
    • Cameron Park Suburb Profile
    • Cardiff Suburb Profile
    • Charlestown Suburb Profile
    • Hamilton Suburb Profile
    • Mayfield Suburb Profile
    • Merewether Suburb Profile
    • New Lambton Suburb Profile
    • Newcastle Suburb Profile
    • Wallsend Suburb Profile
  • Rental Appraisal
  • Switch to Us
  • Now Renting
    • Properties For Lease
  • Blog