Raising the rent

[Bumperstump Cummerbund]

So many responses! Thanks everyone

The house is currently let at $270 pw, with the average for the area being $310. On the one hand, ours is a little run-down, but on the other hand, it's on over 1000sqm and we pay for the lawn upkeep, the tenants don't hafta worry about it. I don't know if I'm trying to justify myself or making good points to be honest. I'm probably just overthinking the whole thing.

[Liz]

Sounds like a bit of a bargain! We pay someone to do our mowing, and that's easily $80 per month during summer months. If you're doing the upkeep of the lawns, that's saving time and money for the tenants right there. I'd go for it since you're under market price already. Like BG said, if you feel uncomfortable with the rise, maybe do 1/2 now and another 1/2 in 6 months. Or you could leave it and do a bigger increase at 12 months. Don't rip yourselves off though

I think the thing with 6 month increases is with the notice that you give for the increase, it would feel like you start paying the increased rate and you're no sooner issued with notice for the next increase. A larger increase at 12 months would sit better with me as a tenant... but hey... I'm just a tenant. As everyone says, landlord calls the shots.... don't mind us tenants!

[meow]

So many responses! Thanks everyone

The house is currently let at $270 pw, with the average for the area being $310. On the one hand, ours is a little run-down, but on the other hand, it's on over 1000sqm and we pay for the lawn upkeep, the tenants don't hafta worry about it. I don't know if I'm trying to justify myself or making good points to be honest. I'm probably just overthinking the whole thing.

I think those are good points. Surely you have already built lawn care into the rental cost if it's something you expected to pay for? Our place was originally rented at $20 per week OVER what we hoped to get so that was a factor in us not increasing the rent.

[sangie]

If your PM is recommending a $10 increase then I would probably do it. It does sound like your tenants are getting a bit of a bargain!
If you feel uncomfortable about raising the rent after 6 months then maybe increase it for more after 12 months instead (like $15?).

[Bumperstump Cummerbund]

Thanks for all your replies peeps We ended up telling the agent to keep it as is if the current tenant re-signed, or raise it if the tenant is leaving. The deciding factor - apart from me being a big softie - is the works we'll be doing to the block over the next 6 months, they could be annoying if any of the tenants are home through the day, so it's a bit of a sweetener