Rental Increases

[aniken]

I've increased my rent by a total of 10% in the past 12 months.

[Billsta]

It's demand vs supply.

It's part of the property cycle.

When there was the sales boom a few years back the rentals were cheap and landlords were struggling to find tenants, when everyone was buying to move in or to invest.

NOW the sales are steady and the rentals are going through the roof.

Don't blame your landlord, you can blame the government but the rental market was alwyas going to make a huge recovery after such a big and long lasting property boom that we had.

The government didn't plan ahead of what would happen to the market after having such a large boom. The current media hype about the rentals have put further pressure on tenants as landlords are reading the information and are wanting better returns after getting below average returns for the last five years.

Housing is still expensive and though there is the first home buyers grant there are still too many ppl out of reach in buying a property. There's been alot of development and construction of medium to large density properties in the last five years and rental acomodation has been affordable till now only because there is now a shortage of properties and investors.

Investors are only just returning to the market after some taking heavy losses, many bankrupt and many that have debt up to their necks.

Yes it definately is a good time to buy especially for those that are looking to buy under 500K.

What the Sydney market is experiencing is something I've been expecting for five years now. The market is trying to recover but before it does that, the rentals have to increase improving rental yields and keeping sale properties under control, this will remain a fact for at least another two years before the housing market has; readjusted itself, more land available for new housing, confidence is renewed in the market for investors.

Rentals will never drop or have such a major drop in pricing like it did a few years back only because the rental market has had to increase compared to the cost of owning an investment property and that there will not be a repeat of such a large property boom that we expereicned a few years back.

Paying higher rent is only a part of life now and it's not your landlords fault the market is driving the rental market up and it will continue to climb for time to come so it definately is a time to look at your financials and consider getting yourself into the market and buy your first home or investment.

PS. I work in the Real Estate industry and follow the market very closely.

[Jman]

Yea, my rent's gone up too.

I've read that an annual rental increase of 5% is acceptable, but 25% is a bit steep!

My landlord wanted to up mine around 15%, I spat the dummy and got them down to a 9% increase, which personally I think is a bit steep. But the market is just NUTS atm.

Not alot you can really do.

Really gotta get out of the rent rut ASAP. Soon enough its going to be next to impossible for any one person to afford a mortgage. Give it a few years and its gonna be half a mil for a sh*tbox 2 bedder appartment!

[Paranormal]

I'm with you Jman 5% maybe 10% cause we want to go on a periodic lease but 25% that's just fecked XXXR6 it'll increase our rent from $260 to $320 and were bout 30min south of Brissy, also just bought a franchise doing mobile car paint repairs so funds to purchase a house aint going to be an option for several years yet.

I did own a small unit for a couple of years, moved out of it and rented it, which got trashed, who keeps a dog in a unit? had to borrow to replace carpets & paint sold it, broke even I guess. Wont ever buy a unit again no land but have to pay the same in taxs plus strata fees plus not own any land.

Anyways tax return was going to catch up the bills but looks like moving time.

[TornadoJudd]

Where abouts do you live TornadoJudd? that's just crazy prices

Moranbah a mining town in Central Queensland

[harvyk]

Check your rental agreements very carefully, also check out the tenancy laws in your states. You'll probably find that a rental increase of more than about 5 or 6% has to be given with a damn fine reason, it also usually has to be approved by the tenancy tribunal on a case by case basis. Also if you feel it's an unfair rise and can't get anywhere with your landlord make a complaint to the tenancy tribunal, let the magistrate query the landlord why just an increase is justified.

Most landlords (and real estate agents) will try putting on a hefty increase because they are either unaware they are not allowed to simply place on massive increases (and \ or know the tenants don't realise this can't just happen) or are willing to try it on.

Check out the laws for yourself (don't bother with the tenants unions, they give crap advise according to a few of the magistrates I've spoken to) also speak with the law council if there are parts you are not sure about, they are usually able to give free legal advice (and better advise than the tenants union who are usually not lawyer, but ppl simply reading from a website)

Also read up on the sections, nothing scares the pants off a real estate agent if they think you know the tenancy laws, citing sections of the tenancy laws to go with any arguments works wonders (speaking from experience)

Also from my understanding they can't force you to sign an additional contract once your first one has expired, they also can't make any major changes to term or conditions between contracts and force you to comply.

Edited 18/07/07 12:19 PM by harvyk

[tab]

Also keep in mind that once the lease expires you automatically go on to a periodic tennancy....which means a rather short notice period until you're out on the street

[XR06T]

it seems to be a rentor's market at the moment. recently over here my friends rent went from $150/week to $250/week or something like that..

it is not a very big or fancy place, and is at the bottom of the market so it is still cheaper than most places, but only ~$50 cheaper than a <5 year old 4x2!!

feel for you though mate, best of luck!

Edited 19/07/07 01:08 AM by XR06T

[Guest newl]

Looking at an 18% increase on 08.Aug ($255->$300/wk).

[turbotrana]

Interest on an average 500K home is about 40k a year so renting is quite cheap. Yes rents will be rising quite a bit to catch up and along with it inflation. Its about time that landlords had the tenant by the balls. Everyone seems to be staying put and not complaining about $50 per year rent rises cause they know how hard it is to get a rental nowadays.