Current place is rented at $760 per week (4 bed, 2 bath + powder, double garage) and has been on an 18 month lease expiring in January 2024.
REA called and said that $780 is probably pretty much what we can expect. That works out to be a 2.5% increase over 18 months. Which seems quite small. FWIW the property insights on domain/realestate say around 7.5% growth for units and 20% growth for houses 12 months to date. This is a townhouse built in 2021 so very modern inside. So I’d say let’s just go with an average 7.5% although it’s probably somewhere in between the two figures.
Now, the tenant is solid. Always pays on time no issues this far, so I’d also like to keep them on, but I’d kind of expected the REA to say somewhere IVO $800-820 was fair in this market. Being a 5-7.5% increase over 18 months.
His argument was there are cheaper houses listed (true but they’re old and rundown, high maintenance for tenants with gardens, lawns, big trees, certainly lacking things like zoned ducted cooling and heating, ceiling fans, etc [property is in Brisbane]). At first I was like ok… this does make sense, and I understand that if I lost a single week of income waiting for someone to pay $800, it would be 40 weeks before I made that income back if they just paid $780. So we aren’t talking massive dollars here if I went with REA suggestion.
The question i have for the OzB lords and lady’s of the IP owner types - do you think my REA is being lazy because they just want to copy + paste the previous RTA with $20 extra rather than go through the hassle of potentially risking advertisement, viewings etc?
This is my first IP and whilst it’s been relatively stress free with an excellent tenant and the REA seems solid so I’m not sure if I’m being taken for a ride in some respect.
The data is interesting, but as it is only median, judging from the prices, they are much lower then new rentals.
Im guessing alot more established homes are renting out at cheaper long term prices.