bra_boy

I have just received a letter from LJ Hooker (property agent), written in stilted language, asserting that a 7% rent increase of the rent for the house is "appropriate" in view of the high demand for rental properties in our area (Maroubra).

I wonder if others have been receiving similar demands since the New Year. If so, this would suggest concerted mischief-making by the agents, who stand to benefit if tenants move out. Perhaps I am too suspicious, but these agents exude something that I instinctively distrust.

Sherlock Holmes

My step daughters rent in SA has just gone up 5% with no explanation at all. This was via the owner not the agent. Maybe it's just an annual thing, even if it shouldn't be.

steen1976

How long have you been in the place for?

And I never trust anyone with 'Agent' in their job title. They are all a set of scheming deceitful b@stards.

Wheereabouts in Maroubra mate? Lived on Storey Street before and looking to head there myself in few months. so I'm part of your problem really - sorry!

Icecube

Why do you say that rents should not be reviewed annually based on inflation / COLA?????

isgraham

Look on domain and see if they are asking for over the odds for the area then make a counter offer.

jad n rich

I would have thought a more likely reason for the rise would be because in the last year, rates, water, insurance and interest rates on property have gone up.

IvanM

Spot on.

koalakim

Try negotiating the increase.

In our last rental after our initial year was up they wanted to put the rent up $20 a week which we thought was a bit steep in one hit. So we offered $5 finally negotiated $10 for 6 months and then $20 after that...fortunately we have now moved into our own place, so now at the mercy of the RBA

But wait....after we moved out they advertised the place with an $80 a week increase and they had loads of people round to view and wanting it! So not sure if there is also a shortage of rentals in our area. Two properties on our new estate have been up for rent and didn't take long to go.

Scotty1

Being one of the "scheming deceitful bastards' so mentioned...

Agents will tend to review rents annually or when a lease expires

Local market, landlord views, and inflation etc are normally taken into account

If you have been a good tenant and paid rent on time, not held annoying parties etc, it is unlikely to be a tool to remove you, and you can probably negotiate a little as it will cost them to get a new tenant

In NSW if you thought this rise was unfair, I would point you to the OFT and the rent tribunal. Not sure about other areas however.

If you want to see if your new rent is reasonable in the market do a dearch on domain or real estate and see what new rentals for your area and size of property are going for

Not all rental agents are out to shaft you - some of us are just normal people

Scotty

bra_boy

Thanks for the varied replies, from Scotty1 especially.

As I see it, the rent increase is craftily timed to coincide with the start of the student year, when demand/prices are at their height. It bears no relation (in years or half years) to the time we have spent here.

Is the new rental fair? Probably, in the sense that it reflects the market. But maybe I am a bit disappointed that the landlord, who I see from time to time, did not speak to me about it directly. I admit that my reaction is a value judgement, not an economic assessment. With kids to worry about, any uncertainty about housing is a potential threat to family life.

itxrd

Call their bluff - esp if rents haven't gone up round there. We live in Neutral bay and haven't had any letters.

A rise of such a small % is prob the agent trying to be clever. For the landlord everytime a new tenant comes in he loses quite a large % of the 1st months rent. So this 7% or whatever increase isn't going to do him much good. Its all for the agent who are banking on existing tenants paying it. Most prob a blanket letter to everyone on their books

Give them a call, tell them your disappointed + you're not going to pay it. see what they say. I doubt they will go through the whole hassle of openings, vetting tenants, etc etc all for 7%

Bermudashorts

So aren't you in a contract then, they surely cannot put the rent up mid agreement?

DownUnderPaddy

Unfortunately, it would appear that these type of rent rises across the board in Sydney is the expectation for 2011 according to these recent articles.

House prices will be flat but you can bet on rent rises
http://smh.domain.com.au/house-price...211-18the.html

"Vacancy rates to remain tight for most of the market and that means at least 7-9 per cent plus rises in rents for 2011."

The Party Is Over In Australia As Debt And Living Costs Surge
http://www.businessinsider.com/the-p...s-surge-2011-1

"With banks warning they will be forced to raise mortgage rates by 0.50 per cent in 2011 and Sydney rents forecast to rise by between $160 and $190 a month, according to analysts Residex, householders look set to suffer."


Adding this for ref, in case if it is of any assistance.
Factsheet 04: Rent increases (from the TenantsNSW website)
http://www.tenants.org.au/publish/fa...ases/index.php

bra_boy

Bermudashorts- We have been at the month-to-month position for some months now, so the landlord is at liberty to raise the rent. Judging from DownUnderPaddy's posting, it seems that he will not be alone.

itxrd - I think your instinct is right, but if it goes wrong, we stand to lose more than we could gain. Before we got this place, we tried to make offers that were based on satisfying the mutual interests of ourselves and landlords. We found that landlords or their agents would rather lose money (by leaving the place empty - we monitored them) than accept a slightly lower offer.

harrip

You think the renal is probably fair - so thats hardly an issue. The landlord pays LJ Hooker to manage you as a tenant - why should the landlord talk to you about it?