To increase or NOT to increase?

We understand that prompt and ongoing rent payments are the lifeblood of property investors.

We understand that prompt and ongoing rent payments are the lifeblood of property investors.

We suggest that rent levels should be maintained at or slightly below market rent levels in order to keep pace with increasing costs and to ensure that the tenants do not vacate due to an above market rent increase.

When recommending a rent increase to you we take into account the nature in which the tenancy is being conducted, how the property compares with others that are presently on the market and ask, if the property became vacant today what rent would it realise?

There are times that we may recommend that the rent level remains unchanged due to market conditions.

We have found that the properties for which investors increase the rent to above market levels have higher vacancy levels that those who maintain rents at or slightly below market prices.  Therefore, increasing rent to above market levels is false economy as it results in a higher turnover of tenants, high vacancy and lost income.