How To Raise The Rent And Keep The Tenant?
27Nov

How To Raise The Rent And Keep The Tenant?

Does the thought of losing your tenant because you want to increase the rent on your investment property paralyse you into inaction?
Do you worry about the potential risks you face if the tenant does want to move out? How long will it take to re-rent your investment property? How will the investment loan be paid?
These are all good points to consider but these address only the negative side of your decision-making process. 
There are several benefits for you by increasing the rent and keeping the tenant. Outlined below are several strategies that will not only make you happy but keep your good tenant as well.
Go slow
Small incremental increases reduce the shock to your tenant and will help make them more likely to stay. 
The last thing you need is a vacant property whereby you are servicing a mortgage without rental income. 
Our recommendation is to make increases of around $10 per week every 6 or 12 months rather than hitting the tenant with a $50/week increase because you haven't boosted the rent for several years.
Is your property pet friendly?
Pets for many people are part of the family. So, when tenants are looking for a new home to rent, Fido is part of the move.
Responsible tenants understand the angst landlords have about having their much-loved pooch or feline in a rental home and usually come armed with strong references on how, Imelda the Burmese cat, has also been a good 'tenant' in the past. 
Check your landlord's insurance policy regarding damage to your property caused by a pet just in case the unthinkable happens. It may be worthwhile adding a clause to your rental agreement that covers damage caused by a pet.
Keep maintenance in check
Nobody likes spending money but as is often the case, little things can lead to big things. Fix the railing, add a spot of paint and make sure the pool filter is in great shape when advised by your property manager. Repairs can be expensive.
Mini makeovers like refreshing the bathroom with a fresh lick of paint or sprucing up the garden with seasonal flowers and shrubs all adds value to the property and in turn can contribute to a rent increase.
New developments in your area
Keep your eyes open as to what’s happening around your rental property. Is there a new school or has the existing school expanded? 
Has your local shopping centre been revamped or is there a brand new medical precinct close by to your property?
What is your local council doing in the area? Have they upgraded transport facilities making it easier for residents to commute?
Also look at brand new residential developments that have also occurred in your suburb. 
What are they offering? Pools, gyms and bbq areas are attractive for some tenants and may cause your faithful tenant to look elsewhere. Be mindful of your competitors and combat as best you can. Most tenants prefer not to have removal costs every six months either.
Ask your tenant what they want
Via your property manager, discover what's important for your tenant to remain in your property. Should your home be air-conditioned to combat the Hills District’s hot summers? Would solar panels help reduce your tenant's electricity bill thereby making your property more attractive? 
Determine the must have checklist that keeps your property fully tenanted without wasting money on items that add little or no value for you or the tenant.
Talk to your property manager regularly
Your property manager has their finger on the rental market in the area. They know what properties are renting fast and what tenants are demanding.
As asset managers working for you, they know how to keep your property in top shape, keep your tenants happy and help boost your rental return.
Little rewards - spontaneously
Here's a tip - reward upfront. It creates better behaviour. If you're going out for a special dinner, tip the waiter BEFORE dinner.
The same principle applies here with your tenants. If you want good, on time, paying tenants that respect your property, reward them, without reason. Be spontaneous.
In the first week of December, have your property manager deliver a bottle of wine and a six pack to your tenant with a note "enjoy a cold one on us at your next bbq - the owner”.  If they have kids what about a Domino's pizza voucher.
What about 2 tickets to the cinemas at the nearby shopping centre complex?
Small unexpected rewards can go a long way to keeping good tenants and gradually boosting your rental income.
 
Conclusion
There are several ways to increase your property's rent without losing your tenant. By adding value to the property and making it a pleasurable place to live, the tenant is more likely to stay for the long term.
Tenants also understand as time goes by, things become more expensive, including rent. 
Provided the property is well maintained and it ticks the boxes as compared to other rentals in the area, most tenants will wear small incremental increases. It’s less expensive than moving.
Smart landlords also know how to keep good paying tenants. They reward upfront with little bonuses like free movie tickets or family pizza vouchers that virtually guarantees good behaviour.
The Hills District with a lowering rental vacancy rate ensures that your property if vacant can be leased quickly. Work with our property management department to get the best out of your rental, including rent increases, and enjoy a hassle-free management
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