Property Management – Calabasas
Calabasas Property Management
West Hills Property Management
Woodland Hills Property Management
Landlords who throw away money
As strange as it might sound, some landlords are so reluctant to put up the rent that they miss out on thousands of dollars a year.
I know of one case where the property owner turned their back on $13,000 a year in the false belief that if they put up the rent, their good tenant would leave.
In the Melbourne suburb of Toorak, a three-bedroom house was rented for $435 a week when the tenant of six years vacated. With no additional work done to the property, it was leased recently to a new tenant for $600 a week.
The rent for a two-bedroom unit in Melbourne’s Armadale jumped by 89 per cent, from $190 to $360 per week after the long-term tenant moved out and the property was painted and had new carpets and blinds installed.
Experience shows that tenants understand the property market and they will know if their rent is under market value, so there is little danger of them vacating purely because the rent is increased to close to market price.
Some landlords are their own worst enemy when it comes to maximising the financial return from their investment properties. They are correct in emphasising the need to cater for the needs of reliable and trustworthy tenants, but they put themselves at a huge disadvantage by trying too hard to please them.
These property owners think that because they have good tenants who care for their property, are friendly and pay the rent on time, that they want to keep them. That is a great attitude, but these landlords rationalise that the best way to retain their tenants is to keep the rent low – and unchanged – for years on end.
It is one of the biggest mistakes they can make. The longer the rent stays below market price, the more difficult it is to increase it. And it is even harder to jump the rent in big amounts to get it back to the market rate. Regular rent increases, in line with market movements, are far better.
There are also other ways to acknowledge good tenants. Doing maintenance promptly and efficiently is the best way for landlords to keep in tenants’ good books. Offering to upgrade the property with equipment such as an air conditioner will always win favour with tenants and add value to the property at the same time. Asking if there is anything the tenant would like done shows them they are valued. Such things make for the productive leasing of the property and create the best of both worlds for tenants and the property owner.
Not sure whether you are charging the right rent? Take advantage of our free rental appraisall. With RUN, you not only receive timely rental increase but also quality tenants. SWITCH TO RUN now!!
By RUN Property CEO, Rob Farmer
RUN Property – sales, leasing and property management. For more information visit www.run.com.au
Carnahan Property Management services Woodland Hills,West Hills, Calabasas, Canoga Park, Tarzana, Reseda, Topanga, Encino, Northridge, Van Nuys,North Hills,Chatsworth, Sherman Oaks, Studio City, North Hollywood, West Hollywood, San Fernando, Granada Hills, Mission Hills, Simi Valley, West Lake Village, Agoura,Toluca Lake, Valley Village, Burbank
