Some Landlords Fearful of Increasing the Rent
As your managing agent it is our duty of care to ensure that we are maximising your income and optimising capital growth. Our team are trained and skilled in working for the best interests of our client’s ‘landlords’.
There has been talk in the media that in some areas property managers are trying to win tenancies with rent reductions and free rent periods, which we believe could be better managed by spending money on things that will increase the rent, improve the property and attract tenants.
Landlords can also be fearful of increasing the rent to retain a current tenant. While this can be seen as kind-hearted, the focus should always be on maximising the income while taking into consideration secondary issues such as vacancy periods and the quality of the tenant.
There are some common elements with the type of properties that are being discounted and no rent increases imposed, which are often the presentation and quality of the property. As the property ages the rental return can lessen if care is not taken.
We understand the concept of valuing our tenants and that our clients want stable, good paying, quality tenants. However, if you want to value your tenants while maximising your income you may like to offer them some extras as a thank you for their loyalty, instead of discounting and avoiding rent increases. Many services increase every year – it is business! As an offset for the regular rent increases consider:
- Maintaining the property well
- Offering a new dishwasher
- The installation of cooling/heating
- A free carpet steam clean
- A free house clean, or
- A free external pressure clean of the property… to name a few.
If you maintain the property and look after the tenant, they will see value in the rent increase as you are helping them to live more comfortably.
Even if the tenant objects to the rent increase and moves out, you will have a well-cared-for property to attract future quality tenants.