Rent increase of $5/week...

Lseemos on 15/12/2021 - 19:24
Last edited 16/12/2021 - 10:03 by 1 other user

Hi OzBargainers,

I've just heard from my property managers that they want to increase my rent from $400/week to $405/week for the new rental contract (beginning next year).

I'm in Perth, they explained the tightened rental market justifies the increased rent. But a $5 increase … what the hell haha.

What's the goal of this? It's a couple hundred bucks so I'm trying not to spend much time dwelling on this as it's a tiny increase and I'll likely happily accept (no increases in the last 3 years).

Any experiences or advice is welcomed :)

Home & Garden

Comments

  • bobbified on 15/12/2021 - 19:26
    +52

    But a $5 increase … what the hell haha.

    If you think the increase is not enough, feel free to ask them to increase it some more.

    • CyberMurning on 15/12/2021 - 20:20

      Agree. Too small in my view

    • Pascal on 16/12/2021 - 16:58
      +1

      Or buy them a hamper!

  • raptormesh on 15/12/2021 - 19:38
    +4

    Cool story.

  • anthman on 15/12/2021 - 19:42

    Seems normal to me. Especially since no price increases in the last 3 years. That's 1.25% increase. I'd say move on or move out.

  • Drakesy on 15/12/2021 - 19:44
    +4

    it's 1.25%, given inflation is running at ~4.5% i'd take it as a win

    • Mokr on 15/12/2021 - 21:36

      But interst rates?

  • WreckTangle on 15/12/2021 - 19:52
    +3

    That much probably covers increased water, rates or insurance for the landlord. Seems reasonable. Be thankful its not more.

  • seemos on 15/12/2021 - 19:58
    -3

    Cheers everyone. I am grateful it's not more, I was just confused at the reason (tight rental market) vs a marginal increase. Those ideas seemed incongruent. Thanks!

    • Sinful on 15/12/2021 - 23:38

      Probably the RA telling the landlord they can get more and looking like they are doing something.
      Otherwise they are renting at the max rate to make it look good when it goes on the market in a short while (That's what the RA did for my investment property, before I sold it).
      Edit: "Currently rented at $405 p/w, great investment opportunity."

  • KBZ on 15/12/2021 - 20:02
    +4

    Hopefully it isn't a typo for 450.

  • thatonethere on 15/12/2021 - 20:04
    +2

    It's called boiling the frog.

    Nah - they are probably just steadingly increasing inline with CPI

    • morse on 15/12/2021 - 21:50
      +3

      Sound like very reasonable landlords

  • AndyC1 on 15/12/2021 - 20:30
    +1

    If your happy with paying then what the heck are you posting for and the CPI increase in the last 3 year in perth was way more than the 5/400 ….

  • tsunamisurfer on 15/12/2021 - 20:39
    +4

    What advice are you after?

    They asked for a modest increase.

    You are happy with it and happy to accept.

    Isn't this the definition of something went well?

    Perhaps they see you as a good tenant and by enticing you to stay they get a good tenant and removes the risk of a riskier tenant which can be costly.

    Edit : In Perth no increases for the last 3 years is very very generous.

    • seemos on 15/12/2021 - 20:41
      +1

      I think it was more understanding the rationale but you've explained it nicely.

      It was a surprise, and a welcome one.

  • KML on 15/12/2021 - 20:45
    +5

    Offer to meet in the middle $402.50/week

    • plmko on 15/12/2021 - 22:08
      +3

      $420.69/week

      • [Deactivated] on 16/12/2021 - 19:45

        Haha that's the marijuana and sex number

    • AndyC1 on 15/12/2021 - 22:21

      Offer to pay the amount calculated from the Perth CPI increase for the last 3 years that is outstanding.

    • JIMB0 on 16/12/2021 - 07:23
      +1

      You'd have to low ball them at $402.00/wk to get that.

  • SmiTTy on 15/12/2021 - 23:40

    That's the point. For you to go "small enuff for me to not think about it" or "it'll cost me more to move out"

    Maybe do it again next time.
    The market might not even be that tight

  • azngamer on 16/12/2021 - 00:28

    From an investment point of view, owners will try to increase their rent as much as they can while retaining their tenants if they are good.

    $5/week is $260 a year and property agent takes 10% so that leaves $234 increase for them in a year. My best guess would be $405 rent (subtract RE fees) equals their P&I repayment.

  • Ocker on 16/12/2021 - 08:03
    +1

    Some people are never happy!!

  • bongom on 16/12/2021 - 08:43

    Property agent is keeping the $5/week and not telling the owner?
    No happy tenant is going to move out over $5/week.

  • Maglia Nera on 16/12/2021 - 09:04

    The question (if there is one) is obviously from someone renting in the Perth market

    MaYbE TalK to Ur PrEsiDenT mCgOwAn

  • holdenmg on 16/12/2021 - 10:02
    +1

    +$5pw is one less coffee unless you are slumming it drinking 7/11 "coffee"

    I'll let you break the bad news to your local Barrista…

  • dust on 16/12/2021 - 10:07

    How is it compared to market? If you can get something better elsewhere you can leave (threaten to leave) and see what they say. It'll be a PITA (and will cost landlord money) to find a new tenant.

  • dogboy on 16/12/2021 - 10:40

    Sure it isn't a mistake and should actually be $50/week. That sounds a lot more in line with the market at the moment.

  • Domingo on 16/12/2021 - 10:47
    +1

    It's probably a strategy just to at least get some indexation. If your rent doesn't increase by the inflation amount, then you're practically getting a rent reduction year on year if it doesn't move.

    I think from the LL's perspective if they go up 5 bucks a year with a tenant in there in 5 years time they're getting another $1300 over what they would have gotten if they kept it flat across that time period. So it's not just about it being $405 this year, but $410 next year, $415 the year after etc.

    • dust on 16/12/2021 - 11:00

      If your rent doesn't increase by the inflation amount

      Can you please talk to my boss about my salary too?

      • Domingo on 16/12/2021 - 11:07

        If I wasn't getting a year on year salary increase, I'd be looking for a new job. There's a massive shortage of skilled labour in Australia at the moment, particularly in professional services type work so if that applies to you it is a job seeker's market and plenty of other places will be prepared to better compensate you - it's one of the key ways to attract new staff when demand exceeds supply.

  • DemocracyManifest on 01/02/2022 - 18:27
    +1

    I just got a $40 increase so I’m not impressed

  • KRiSX on 02/02/2022 - 11:11
    +1

    lucky you, i just got hit with a $40 increase which i'm trying to get halved for 12 months with an agreement to go the full 40 after that…

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