Start with what similar homes have leased for
The best guide to rent is what comparable properties nearby have actually leased for recently, not what they are advertised at. Asking rents show where owners hope to land; leased results show where the market is.
A fair comparison looks at the same type of property in a similar location, with a similar number of bedrooms, bathrooms and car spaces, and a similar standard of presentation.
- Ask your team for recent leased results, not only current listings.
- Compare like with like: type, size, parking and condition.
- Allow for features that make a real difference, such as air conditioning or outdoor space.
Know the rules before proposing an increase
NSW rules limit how often rent can be increased and require tenants to receive written notice before an increase takes effect. A tenant who believes an increase is excessive can apply to the NSW Civil and Administrative Tribunal (NCAT).
Your team will check when the rent last changed and what notice applies before any increase is proposed, and will put the proposal to the tenant in the correct form.
- Confirm when the rent was last increased.
- Make sure notice is given in writing and in the required time.
- Keep the evidence used to set the new rent on file.
Weigh the rent against vacancy
A higher rent is not always a better result. If an increase leads a reliable tenant to leave, a few weeks of vacancy, re-letting costs and possible repairs between tenancies can outweigh a year of the extra rent.
For a tenant who pays on time and looks after the property, a moderate increase in line with the market is often the better long-term outcome.
- Consider the tenant’s payment history and care of the property.
- Estimate the cost of a vacancy and re-letting.
- Discuss the options with your team before deciding.
Review the property as well as the rent
A rent review is a good time to look at whether an improvement would make the property more competitive, such as new blinds, a fresh coat of paint or replacing an ageing appliance.
Improvements are easier to plan around a lease renewal or a change of tenants than in the middle of a tenancy.
- Check the latest inspection report for items worth upgrading.
- Get quotes before deciding on improvements.
- Time larger work for a renewal or vacancy where possible.
Let’s talk about your property.
Discuss your plans and the next steps with our team.
