Every investor wants the perfect tenants. Having tenants who keep your property clean and tidy, make all their rental payments on time and create little fuss can be hard to come by. But would you replace the perfect tenants if it meant you could charge higher rent?
Firstly you need to consider what the costs will be of changing tenants, and how much less your tenants are paying than the market average.
If for instance you think that you could be getting $20 extra a week, consider the turnover fees such as advertising for new tenants, paperwork, repairing any damage or possibly being left with a vacant period between tenants.
Also is there anything your current tenants are doing now that is saving you money. Are they doing all their own gardening or helping to make repairs?
If after considering all of the possible costs and factors in raising your tenants rent you then need to be aware of the following:
· Rent can’t be increased more than once in six months
· Tenants need to be told about any rental increase at least 60 days in advance
· The increase can’t take place before the end of a fixed-term tenancy
At the end of the day it might not be worth those extra few dollars each week if you have a tenant that you are completely happy with, but if there is a big discrepancy between what your tenants are paying and the market rate, then perhaps you should consider raising the rent or getting new tenants in.
For more information visit www.consumer.vic.gov.au.