Landlord Increasing Rent over $85 a Week, Should We Move?

LCreamsoda on 28/04/2022 - 15:40
Last edited 28/04/2022 - 16:09 by 1 other user

hi guys just want some opinion on the issue. We are currently renting a 2bedroom 1 bathroom apartment in South Yarra VIC Our 12 months contact is coming up with our apartment in SouthYarra and the landlord has contacted us to increase rent from $500 to $585.

We rented the small place (small kitchen that wont even fit a large single door fridge only 1m kitchen bench space for food prep) paid above rental market price during the height of the pandemic with most of the newer apartments going between $350-$450 at the time thinking paying regular pre-pandemic rates will likely to get our lease renewed as moving is a major pain and are not keen on doing it every year. now the landlord has said the market is shifted and the agent has gave them a suggestion that a $85 increase a week is market price, which i think its insane most newer apartments has gone back to around $500. we like the area and prefer not to go through the trouble of moving.

Is our landlord ultra greedy? should we find a new place or even try to negotiate the rent?

Poll Options

  • 525
    Yes
  • 19
    No
  • 75
    Negotiate
Home & Garden

Comments

    • Wayne7497 on 30/04/2022 - 16:19

      Ain't that the truth I rent out my 4x2 with a pool 10kms from Perth cbd for $420 week on 900m2 block I'm happy with that

  • echelon6 on 30/04/2022 - 10:03

    I got away with increasing one of mine by $55pw. Not bad!

  • adn on 30/04/2022 - 13:05

    Just leave if you not happy. It all business in the end of day.

  • cnrmlj on 30/04/2022 - 15:12
    +1

    If you don't like it and find you can get better value elsewhere then move or try and negotiate with your landlord.

    Landlords costs may have increased too. I know mine have and i'm not running a charity so have put through a small increase to my tenant.

  • Spicytunaroll on 30/04/2022 - 15:34

    The rental market has gone beserk in Melbourne and likely to get worst in the next 12 months with insufficient supply due to the pandemic and influx of demand. As much as it would feel good to show it to your landlord, make sure you do diligence on the market and understand the options.

  • GregRust on 30/04/2022 - 17:10
    +2

    My GF moved into a 2 Bed, 2 Bath apartment in Southbank back in November 2020. Rent was $380 p/w then (admittedly “cheap” due to market conditions). Landlord put that up to $415 in January 2022 and now wants to put it up to $580 in July.

    Landlords can be savage.

    • Eeples on 30/04/2022 - 20:56

      My bro, locks in yearly agreements.

    • pogichinoy on 01/05/2022 - 00:13
      +1

      Market conditions in Nov 2020 were obviously below the long term average.

      Since restrictions are lifting and everything opening up, the rental market is slowly returning to the long term average.

      Landlords aren't savage if they simply are raising rent back to long term norms.

    • Whiskeyjack on 01/05/2022 - 16:55
      +2

      Victorian law clearly says landlords can only increase the rent once every 12 months, no matter the type of rental agreement. They can just (profanity) off in July, the parasites.

      • GregRust on 01/05/2022 - 18:09

        For sure, this is the plan! Good riddance.

  • MikeKulls on 30/04/2022 - 19:52

    Damn renting sucks. I can't imagine being told to suddenly move

  • [Deactivated] on 30/04/2022 - 20:42
    -1

    Honestly, a lot of times agents/landlords with just try and see what they can get away with. Mine tried to do an increase of $40pw pre-pandemic both times the lease expired. Managed to negotiate down to $10 each time. In many cases agents and landlords would rather hold on to a reliable tenant than having to advertise and potentially leave the apartment empty and lose out on rent while finding a new tenant. Some agents will even encourage landlords to reduce rent increases if you indicate you're thinking of moving, just so they don't have to do additional work.

    $85 seems insane considering what you're already paying. Seems better to move if they don't budge.

  • Eeples on 30/04/2022 - 20:55

    Negotiate to $525.50, or move.

  • will05 on 30/04/2022 - 23:22
    -1

    hey OP, yup you should move to new place, always works for me as my other half loves kin ki korners ;)
    also you certainly save $85x4 $340x12 = $4080 which you get decent furniture from amart, win-win

  • Jaysful on 01/05/2022 - 01:59

    From a tenant's perspective, the move is cheaper than the rise in rent over 1 year. The pandemic has killed a lot of 'investment properties repayments' and caused many to sell which was timed perfectly with low interest rate and people who's been eyeing to get into property market.

    From a landlord's perspective, when a contract comes up for renewal, the property agent makes recommendations to increase rate to market rate. It's literally a text message or email to the landlord "Surrounding properties are now going for $XXX per week, would you like to match the market?" and it's a simple Y/N.

    Nothing is personal, nothing was done in malice, it's just market shifting as per usual and there will always be people caught in the crossair.

    The area you're in is very upper-class. If it's not absolutely crucial to be in that area, it'll be nice to get a bigger place for less elsewhere.

  • wots on 01/05/2022 - 10:43

    go back with a counteroffer: 550.

  • MontyMacaw on 01/05/2022 - 12:58

    You can fish on Airbnb for owners of multiple properties. They have had a hard couple of years. If they take into account all the overheads of Airbnb with commission and cleaning they can be persuaded to lease at a reasonable rate and be flexible with the terms. They will want to live in hope of higher occupancy and higher rates down the line but after 2 years of very poor returns you may find some of them “accommodating”. But like I said it’s a fishing trip so takes a bit of work Start with ones that offer long term deals. Once you have initiated contact with them they can take Airbnb out of the equation and pass that saving onto you but putting your phone number or email into your messaging will be scrubbed by the Airbnb bot so you need to find a workaround for that. It’s not hard to do as any OZBer would know. I know of this being successful.

  • mauricem on 01/05/2022 - 13:32

    Counter offer, $400pwk. Offer valid to close of business then becomes $300pwk. At least the RE will respect your tactics!

    • MontyMacaw on 01/05/2022 - 18:35
      +3

      Or think you’re an idiot

  • fairyflossgrapes on 01/05/2022 - 13:55

    I’d negotiate, given you’ve expressed here you’re willing to move. If they turn around and say no, you can always put your money where your mouth is, so to speak.

  • sierra-juliet on 01/05/2022 - 14:24
    +1

    Bugger that. Our previous landlord in December 2021 tried to raise the rent by $75 (~12.5%) and we told them we won't accept any rent increase at all. They said no. Guess whose place has been vacant since then at a price closer to our original..

    • cookie2 on 01/05/2022 - 22:58

      That there, is a beautiful feeling.

  • Blackadda on 01/05/2022 - 14:43

    write to them, show them some comparable advertised apartments. Say you're not adverse to moving but would like to stay for mutual convenience and offer a modest increse that you think is fair.
    They may have been promised/getting that pre-pandemic and think they are reverting to that without being aware of actual market. (agent could be compromised there)

  • ozpaisa on 02/05/2022 - 07:51
    -1

    I rent my place for$360/week.

    If I have to find a new tenant, it would cost me
    1.5x360 = $540 for finding new tenant charged by pm
    $150 - advertisement online
    Tenancy check - $15
    2 weeks- to find a new tenant and house remain empty = $720(best case scenario)

    That's$1425. So most landlords with a brain would prefer to keep a good tenant rather than find a new tenant, unless the new rent amount will be similar to market value and they will be better off in 6 months

    Also at least in Vic, now the rent can only be increased once every 12 month. So I think this will result in each land Lord trying to increase rent by a bigger amount( provided the other properties nearby are similarly priced) as they won't be able to increase it further for 12 more months rather than 6 months in the past. I don't think this rule will have the intended benefit to the tenants that the govt wanted.

  • FreeFrag on 02/05/2022 - 09:50

    If you think the rent should have been $350-$450, then (assuming the midpoint of $400pw) you have already paid $5,200 extra for this year and the landlord is expecting you to increase it by another $85pw which means that you'll pay another $4,400 next year.

    I totally understand that you don't like to go through the trouble of moving but unfortunately seems like your landlord understands it too and is taking advantage of it.

    If you don't want to have the same drama each year when renewing your contract, I'd suggest you bite the bullet right now and move.

  • xiaoli on 02/05/2022 - 10:06

    I moved after our landlord wanted to raise rent by $140 per week ($630 to $770). Definitely move if you can.

  • atwilliams on 02/05/2022 - 10:22

    If you are happy, can afford the extra $85pw and don't want the hassle of moving, then stay. If not, move. Simple as that.

  • Synticulous on 02/05/2022 - 12:21
    +1

    As a landlord I can and will say this:

    Stuff the extra 85 a week, if the tenants good, maintains the property reasonably well, and happy to stay and pay the already crazy yearly percentage rise in rent? I've told the agent to prioritise retention rather than annoying me with renter turnover.

    Keep them happy. The alternative is an empty property and $0 in your pocket.

    At least offer something in return if you're going to hike the rates. New air conditioner? Water system? Laundry machines? All deductable.

    • trapper on 05/05/2022 - 18:13

      Also every change of tenant is a risk of getting a nightmare tenant. Landlords don't want to rock the boat either.

  • jakeh87 on 02/05/2022 - 14:21

    My leasing agent just told me that we could get $470 a week from $400 6 months ago in Albury. Its out of control but it doesn't sound unreasonable in South Yarra.

  • TailsK on 02/05/2022 - 18:36

    It seems like a pretty big increase as a percentage. If you like the apartment, then try and negotiate. If there are comparable apartments with a better price (compared the new rent), go for the new apartment.

    As others have said, be aware of moving costs. If you spent a few thousand moving, it may not be worth it.

  • trapper on 05/05/2022 - 18:11

    Negotiate first definitely, the landlord may not even care.

    I've been on both sides of this several times.

    • As a tenant; I never really negotiated, just said "no, I can't agree to any increase, please reconsider", and it does work.

    • As an owner; the agency asks if I want to increase rent by $x I say sure, but if my tenant said no I would be fine with that too.

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