Another Day, Another Ozb Rent Increase Topic

Pelicannn on 31/10/2023 - 20:26

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.

Financial

Comments

    • Pelicannn on 31/10/2023 - 20:44
      +17

      Sounds like you need to learn how to read a post.

      I’m more than happy with the $780. I’m asking specifically about my REA’s actions.

  • Nugs on 31/10/2023 - 20:39
    +52

    "relatively stress free with an excellent tenant and the REA seems solid"
    Sounds set and forget, I'd go the smaller increase in this situation. Can always revisit next time
    .

    • Pelicannn on 31/10/2023 - 20:47
      -3

      True, just curious as it is backed up by nothing more than him saying ‘there’s some houses cheaper available in the area’ but doesn’t align with anywhere close to what I can see on Domain/RealEstate.

      • spedohero on 02/11/2023 - 10:26
        +2

        Be your own property manager.

      • jrowls on 02/11/2023 - 14:45
        +1

        have you considered cutting out the REA and having a direct lease? if you only have one or two rental properties, it's not much to manage. you clearly know at least a little about doing market research et al.

        there is a standard form (at least in NSW) and loads of info available online. maybe instead of asking your REA to go for a higher increase, cut the REA, increase the rent by a fair amount and pocket the share you were previously paying to the REA on top. if i were a tenant paying $760/w and i was happy with the place, i'd consider $20-30/w a fair increase. much more than that i would be a little disappointed and probably start looking for a new place.

    • Pelicannn on 31/10/2023 - 20:55
      +27

      RTFP 🤦

      • nobro25 on 04/11/2023 - 08:14

        ead he ucking ost.

    • AustriaBargain on 31/10/2023 - 20:55
      +5

      Pull your money out and help deflate the bubble a bit. Invest in hot dog stands.

  • mrkorrupt on 31/10/2023 - 20:55
    +26

    I have never understood this, you know everything is going up, so why not be nice and take the $20 increase instead of taking a bigger increase. If everyone starts to burn their tenants, would you also burn them.

    If I was a landlord in this economy, I will not raise my rent just because everyone else is, I will keep it the same as sometimes doing someone a solid in this time, will be an awesome act to do

    • Pelicannn on 31/10/2023 - 20:59
      -2

      The amount of increase doesn’t bother me. My REA not doing their job that I pay them for does.

      I want to know if REA’s would do the above because they are too lazy to have a risk of potentially having a tenant leave and having to re-do a lot of stuff.

      • AustriaBargain on 31/10/2023 - 21:05
        +18

        Aren't they taking a percentage? If they felt they could easily get someone else in at 20% more I'm sure they would do it. That's 20% more for them too.

        • Pelicannn on 31/10/2023 - 21:08
          -2

          Yes. This was the first thought I had that made me think it was fine.

          Then I remember I only pay 7.5% fees so 7.5% on a $40 increase is only $150 a year for them.

          That’s when I started thinking that amount is peanuts to a REA managing 20-30 properties and would rather do less work than earn that $150 annually.

          • AustriaBargain on 31/10/2023 - 21:11
            -1

            @Pelicannn: 7.5% is definitely below even the low average. You didn't say a $40 increase, you said

            20% growth for houses 12 months to date

            7.5% of a 20% increase over $760 is $592.80 per year.

            • Pelicannn on 31/10/2023 - 22:05
              -2

              @AustriaBargain: I said I’d have expected IVO a $800-820. That’s as low as a 5% on the current rent price after 18 months. I never said I was expecting nor do I want a 20% increase.

              Heck 5% is less than CPI over that time. Yet somehow me thinking $800-820 was reasonable suddenly makes me a (profanity) of a landlord because I thought 5% was fair when market is saying 7.5 - 20 over 12 let alone 18 months.

              • AustriaBargain on 31/10/2023 - 23:37
                +4

                @Pelicannn: If you can't afford to pay your loan or you are losing money in the long run by renting it out, why not just sell it? Warren Buffet says you'll make more money with stocks than houses anyway.

                • frewer on 02/11/2023 - 09:42

                  @AustriaBargain:

                  Warren Buffet says you'll make more money with stocks than houses anyway.

                  95% of market participants lost $. Did he show you HOW to do it? Or he just want to stay in 5% while use the the plebs money to buy his sell ? Coz dumb money moves the market

                  • AustriaBargain on 02/11/2023 - 10:45

                    @frewer: Berkshire Hathaway itself is a public company, their own stock trades are not secret, you could just copy Warren Buffet's investment strategies if you really wanted.

                    • frewer on 05/11/2023 - 17:32

                      @AustriaBargain: Copy trade has high probability of lost. If I don't know what Im doing, I would just all in here & collect dividend monthly. But I can make 1-2% daily so …

            • jerjergege on 02/11/2023 - 08:27

              @AustriaBargain: That's high, I only pay my REA 5.5%.
              Longview.

          • freefall101 on 01/11/2023 - 01:51
            +2

            @Pelicannn: Why do you think they singled you out in particular for not increasing? If they did that on all 20-30 properties then it starts to add up to a fair bit.

            They also probably manage a lot more than 20-30 properties. If they took 7.5% of 30 properties renting for $1k a week their total revenue would be about $100k a year.

          • Ken1977 on 01/11/2023 - 10:21
            +3

            @Pelicannn: Don't they charge you a reletting fee, I'm guessing that would be incentive for them.

          • IM-Cheap on 02/11/2023 - 13:15

            @Pelicannn: Your fees are too high. I pay 5.5%, if you think your agent is lazy at 7.5% definitley find a new managing agent.

      • uk3000 on 01/11/2023 - 18:12

        Then why not speak to another REA and ask them if they could better if you churn to them?

        Oh wait, there's still an element of unknown in this, right? Only you can decide if a bird in hand is worth two in the bush.

      • JoJoker on 02/11/2023 - 11:34

        Quite the opposite, REAs are bleeding because how few re-let fees they're getting with everyone staying put. They make bank when properties change hands.

    • USER DC on 31/10/2023 - 22:31
      +4

      If I was a landlord in this economy, I will not raise my rent just because everyone else is, I will keep it the same as sometimes doing someone a solid in this time, will be an awesome act to do

      You wont and you know that when all of your cost is sky rocketting faster than you can increase rent by (i.e. your cost of owning that asset), and especially when all government policies are designed to take your powers away from what you can do with that asset (increasing your chances of getting in a Loss lead situation)

      You also havewould need to meet your required repayments (which likely have skyrocketed at least 6% in interest)

      • mrkorrupt on 31/10/2023 - 22:47
        +34

        My repayments are not the tenants responsibility, I took the loan not them

        • USER DC on 31/10/2023 - 22:52
          -8

          If you are set to loose your asset by defaulting/selling (for mandatory or chosen route) then your wont say such that time. Most of landlords in Australia are small family people too.

          Those that already own asset, or have much much higher cashflow to balance minor losses or still got cheap money coming, they could perhaphs have more room for this, others usually do not.

          Dont forget that most people were also on probably cheap rents too (due to perhaphs contracts or government rules) that rents can only be increased to X or once in Y months

          • Pelicannn on 31/10/2023 - 23:00
            -5

            @USER DC:

            Most of landlords in Australia are small family people too.

            100%. I own half of an IP with another person. I saved for a few years to pay for the deposit. I’m not some Uber rich property mogul. I have a normal Monday-Friday job like most Australians but I make a decent enough wage to have purchased the property in the first place. I’m not a charity. I want a fair price for my IP rent and if 2.5% on 18 months is fair then so be it.

            Every Saint on here acting like they rent their place out at 20% under market value when in reality they’re spitting bullshit out of their mouths and would probably try and screw as much as they could get away with.

            • USER DC on 31/10/2023 - 23:17
              +5

              @Pelicannn: In regards to renting you will unfourtunately HAVE (more like SHOULD unless you want to face consequences) to abide by the relavent rules.

              I personally do not think REA is driven to artificially keep prices lower, (they make money of you, not tenants). Some 10-20$/week may not be too much IDK honestly you should look for similar properties to yours in your area and forward them to REA, and ask them to look those too.

              Also btw stop thinking about % in rent increase/decrease, rather look at surrounding prices for similar properties. But yeah honestly speaking having good tennants and making slight loss is much better than other way around (1 single tennant can destroy your entire livelihood with extreme financial burden)

              Complaining tenants that probably cost you like 2-4 months of income itself in small repairs alone each year is gonna be not a good situation. There's a good discussion here (from canada) - https://www.youtube.com/watch?v=lhFKKyc7wJk but still pretty relevant

              Otherwise i mean technically speaking owners can sell of the asset too, or earn from it by not renting it (like by short term rentals) which probably earns more money for owners, but also gives less stability, and some other types of risks and manitaince requirements.

              Btw on other hand I have also heard some stories about e.g. tenants subleasing the rental property to make money from it too. (and owner cannot do anything about it)

            • ThithLord on 01/11/2023 - 10:42
              +3

              @Pelicannn:

              Every Saint on here acting like they rent their place out at 20% under market value when in reality they’re spitting bullshit out of their mouths and would probably try and screw as much as they could get away with.

              lol no, people questioning your logic probably don't plan to get into the IP scheme to only nickle n'dime the tenant who has NO responsibility to your costs. Every single dollar paid in rent to you is pure profit, as it builds your equity. Pay the interest of the loan yourself.

            • ssfps on 01/11/2023 - 15:04
              +4

              @Pelicannn:

              Every Saint on here acting like they rent their place out at 20% under market value when in reality they’re spitting bullshit out of their mouths and would probably try and screw as much as they could get away with.

              I really don't think you get it. I know plenty of people in long term rentals, or renting to others long term (one case of 20 years) and they pay wayyy under market value - you could argue partly this is charity, but for the owners it's also completely effortless/based on mutual trust, there are no agents involved at that point.

              If you want the market rate, you can expect market-average tenants. If you want to build a good relationship with a long term tenant, and potentially eschew agent fees and risks on damage, you should set your expectations of income accordingly. If you're happy gambling on new tenants every 18 months and paying relisting fees, try and squeeze em 100%.

              I'm only framing it this way because your OP seemed to indicate that the money wasn't your primary concern, and you were very happy with the tenants.

            • mousie on 02/11/2023 - 07:34
              +1

              @Pelicannn: Why did you post other than to seek validation.

              Disclosure, I own 70% of PR rented for over a decade.

              A nominal increase that can be absorbed will be fine, regularly reliable tenants are worth something other than aspirational rent prices.

              • Pelicannn on 02/11/2023 - 07:45
                -1

                @mousie: Actually FWIW, my original post had nothing to do with a rent war that this has clearly turned into.

                All I wanted to know was:

                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?

                I never asked anything about whether I should increase my rent by xyz.

                • mousie on 02/11/2023 - 07:54

                  @Pelicannn: Most REAs coast.

                  But that's because they work with many tyre kickers in terms of potential sales listings, open houses, property inspections etc. Property management and tenancy is really just a side business for them because the value is if you end up selling or buying another IP that is managed by them in the longer term.

                  A nominal increase that's affordable, as you suggest for derisks it for the parties involved.

                  If the REA drop the ball, there are other agents that may be more interested in representing you with more effort later on the piece.

            • AustriaBargain on 02/11/2023 - 10:51

              @Pelicannn: You suggesting that OPs REA, or any REA, is a saint suggests you don't have much experience in this game.

            • jrowls on 02/11/2023 - 14:51
              -1

              @Pelicannn:

              I want a fair price for my IP rent and if 2.5% on 18 months is fair then so be it.

              i'm not sure what your understanding of "fair" is but it seems different from mine.

              rents have exploded over the last three years, well ahead of wages. is it "fair" to follow what the market is doing, regardless of renters' capacity to pay?

              you took the risk purchasing a property to make money on. fair (profanity) if you need to up the rent to hold onto it, but let's not pretend that tracking whatever the market does is "fair".

            • keejoonc on 02/11/2023 - 16:30
              +1

              @Pelicannn: People here acting like saints are the ones who would say they would give away a lot of the winnings if they win the lottery but if they actually win it, I bet you they will change their mind in a hearbeat.

          • mrkorrupt on 03/11/2023 - 08:47
            +1

            @USER DC: Firstly, learn the difference between loose and lose
            Secondly, Think of it logically, If I the landlord purchased property X, placed the deposit of Y, then charged the weekly mortgage repayment cost + the management fee + a nominal profit amount, and yet the same person had the same deposit but for some reason was NOT able to get the loan, yet they are literally paying the exact same or more if they got the loan, bought the house, how is that fair.

            You as a landlord take the risk and that is your responsibility to charge a fair price, it is a shameful indictment on this country that weekly rental costs are higher then the mortgage financing cost. This should never be the case, it should always be less then the cost of the mortgage as if it is more then the system is genuinely broken.

            If the weekly rental cost is more then the cost of the finance and management fee, then why doesn't just buy all the housing stock and then rent them out at the price since the government would be making a profit from day 1. Why build public housing, just buy up the private stock and rent them out on the market then increase the price, then the government will never be in deficit.

            The system is broken

    • oranglama on 01/11/2023 - 10:05
      +4

      that's the thing though, "if"

      if I was a CEO I would donate 50% of my money, but that doesn't mean anything

      • ssfps on 01/11/2023 - 15:06
        +1

        I've subsidized someones rent when they couldn't afford market rate. No hypothetical here - mutually beneficial situation.

      • AustriaBargain on 02/11/2023 - 10:53

        You can be a CEO if you want. Let's form a limited liability company that sells printed t-shirts, you can serve as the CEO and donate 50% of the $5 a month we'll make to charity. Well your share would be $2.50, so you'd donate $1.25 a month.

        • oranglama on 02/11/2023 - 11:58

          Ok i guess? Not sure how to respond to this tbh

          • AustriaBargain on 02/11/2023 - 12:53

            @oranglama: Let's do it. You can fulfil your dreams of finally being a CEO, and I can fulfil my dreams of having a Ltd Pty without needing to be a CEO.

    • SlickMick on 01/11/2023 - 11:47

      I don't really understand why rent goes up. Except when interest rates are rising, interest payments (the biggest expense) reduce as the principal is paid off, offsetting the inflation on other costs.

      An investment property will move from negative-geared to positive cash flow without increasing rent (might need to adjust for interest rates and inflation).

      I guess long-term investors can charge the same as those new in the game, so why not.
      If we didn't have a free market, some would probably want laws to fix rent for the duration of ownership. Shame we live in a free country.

    • shutuptakemymoney101 on 01/11/2023 - 22:12
      +1

      If only the insurance company, repair costs, tradies and banks kept their prices the same as well.

    • MakkhiChoos on 02/11/2023 - 12:40

      If Ifs and Buts were pots and pans, there’s be no tinkerers.

  • TEER3X on 31/10/2023 - 20:58

    Probably need a real estate agent to chime in, but to me it doesn't sound like they analysed things properly.

  • localhost on 31/10/2023 - 20:59
    +16

    If you are too greedy and increase rent too much you might be in a situation not getting anything for 2-3 weeks. 3/52 weeks=5% loss on year basis, also all the expenses before new tenants - cleaning, ads, etc..
    Opposite - if you increase rent by $20/week it's now worth. Better keep it the same without any increase to keep good tenants.

  • Mechz on 31/10/2023 - 21:01
    +16

    Will you also decrease the rent when interest rates go down by half in 18ish months?

    Most landlords in this situation would just change agencies.

    • Pelicannn on 31/10/2023 - 21:03
      -1

      I’ll do what my REA suggests as long as my gut feel says they’re doing the right thing. That’s what I pay them for.

      As I said, first IP and I have very little experience in this matter, I have plenty of experience though of buying houses and renting to know REA’s usually go hand in hand with car dealers and lawyers.

      • Typical16-bitEnjoyer on 01/11/2023 - 20:07
        -1

        I have very little experience in this matter

        (profanity) those REA for knowing RE, Car dealers for knowing cars, Lawyers for knowing the law eh?

    • MakkhiChoos on 02/11/2023 - 12:42

      It’s always about supply and demand.

      The rents will go down if demand plummets even if the interest rates are 10%.

      The rents will go up if there is a supply crunch even if the interest rates are at 0%.

    • IM-Cheap on 02/11/2023 - 13:24

      I deacrease the rent on my apartment by 10% around mid 2020. Only just increase back above pre covid rent this year. The rent is what the market will bear so naturally if demand is low and everyone else is dropping prices you drop the price.

  • bobbified on 31/10/2023 - 21:12
    +9

    This is my first IP and whilst it’s been relatively stress free with an excellent tenant and the REA seems solid

    This is what lots of first-time landlords often undervalue! Then they get a tenant who calls the REA month to complain that something little isn't working or appears broken and then they complain that they have shit tenant that's costing shitloads in service calls.

    • Stopback on 31/10/2023 - 21:45
      +15

      you actually want tenants to complain, and notice bad things happening in the house etc

      • jjjaar on 31/10/2023 - 23:08
        +3

        And you want REAs to keep you informed of that too - many of them ignore the tenant and never tell the landlords.

        Landlords need to attend inspections etc to keep on top of whether all is actually good, or communication has been awful.

  • monky on 31/10/2023 - 21:24
    +11

    Why do you have to increase the rent at all? It's already quite high I think, and there are certainly better ways to make $20 a week without having to place undue financial stress on your tenants, whom it sounds like you respect greatly for how well they take care of your investment and pay their rent on time?

    Food for thought.

    • morse on 01/11/2023 - 05:52
      +1

      Likely OPs cost of owning and managing the property are increasing.

      • ThithLord on 02/11/2023 - 10:08
        -1

        Aw boo hoo, maybe OP will have to cover the rising cost themselves? The value to the tenant hasn't increased. And OP sure as shyte isn't going to reduce the rent if their costs go down.

        • morse on 03/11/2023 - 04:42
          +2

          I’m not a landlord, but I don’t get why there’s so much anti landlord sentiment. People invest in real estate to make and save money for things like retirement. If it doesn’t make economic sense they won’t do it. It’s unfortunate that governments across Australia haven’t created enough public housing and outsourced housing to the private market, but also not OPs fault. Rents do go down when demand goes down like what was seen during the pandemic when inner city apartment rents dropped.

          • ThithLord on 03/11/2023 - 09:33
            -1

            @morse: OP is charging their tenant $760 a week, has increased it to $780 with absolutely zero value being added to the tenants residency - and OP is complaining that their REA didn't just increase the rent to +$800 just because.

            It’s unfortunate that governments across Australia haven’t created enough public housing and outsourced housing to the private market

            That's not what is being discussed here. And anyway, OP is only adding fuel to that fire with their obsession with trying to squeeze the maximum out of their tenant when they have provided absolutely zero additional value to the tenant.

            Edit: spelling

            • morse on 03/11/2023 - 14:06
              +1

              @ThithLord: I think it is what is being discussed here. OP is doing exactly what any investor would do, try to maximise return on investment. You’re criticising OP for being part of a system that inherently relies on private investors to provide a basic human necessity. Our economy is a weird mish mash of socialism (subsidies, free health and education taken from taxes) and capitalism, which inherently works on supply and demand, not just raw value or utility of a product. also have to remember that there could be times in the future where major repairs are needed, the property is vacant etc, OP has to account for this and make hay when the sun shines so to speak. People in OPs financial situation likely won’t be eligible for an aged pension at retirement so people like OP and myself have to have enough money saved to self fund and will pay more for almost everything. So it’s not making money for the sake of it, it’s making money to live. For the tenants, I can think of very few scenarios where someone would be renting at $760/week 4bdr property where they would not have the ability to be working towards their own financial goals.

        • Pelicannn on 03/11/2023 - 06:23
          -3

          Just like I bet you sure as shyte wouldn’t rent your place for less than what it’s worth. Off your high horse fam.

          I’ve not once complained about rising costs in this entire thread.

          • ThithLord on 03/11/2023 - 09:29

            @Pelicannn:

            I’ve not once complained about rising costs in this entire thread.

            Oh, you just want to raise the price because you're greedy. How noble

    • Ridiculous Panda on 01/11/2023 - 18:44

      Better ways to make an extra $20 a week? Please enlighten us.

    • MakkhiChoos on 02/11/2023 - 12:44

      Maybe you should take a pay cut or reduce your prices too alleviate some of the financial stress that your employer or customers might be under.

      No one likes to leave money on the table for nothing.

      Food for thought.

      • monky on 02/11/2023 - 14:11

        That's such a funny thought! How long did it take you to think this one up? C'mon be honest!

  • soan papdi on 31/10/2023 - 21:35
    +6

    I’d kind of expected the REA to say somewhere IVO $800-820 was fair in this market.

    Am I right in that you want to charge 800-820 but don’t want to be the one suggesting it? The agent works for you. If you want 820 (irrespective of who came up with the idea), say so and they’ll advertise and charge you for the work. If you don’t get a new tenant, tough luck.

    Is the extra money worth the possibility of an average tenant making life difficult for you?

    • Pelicannn on 31/10/2023 - 21:51

      Nope, I am happy with the $780, it just doesn’t check out with my mental maths of how rents have changed in the past 12-18 months. So I want to gauge if my REA is lazy or actually speaking the truth.

    • Almost Banned on 31/10/2023 - 23:11
      +3

      He is paying the REA for exactly this type of service. It is their job to ensure the property is returning an appropriate market rent. It is not the owner's job to make this recommendation.

      • soan papdi on 01/11/2023 - 10:06
        +1

        Well the agent did make a recommendation which the landlord is unhappy with. So it comes back to one of, accept the recommendation or roll the dice by asking the agent to raise rent to 800.

      • skew on 03/11/2023 - 09:39

        I reckon you REA has done superficial research. You rent increase should be higher after keeping it stable for 18 months + other factors as you mentioned

  • capslock on 31/10/2023 - 21:43

    It is in the agent's best interest to get the maximum rent to maximise his commission. I doubt he is being lazy so he can "copy + paste the previous RTA".

    • Pelicannn on 31/10/2023 - 21:57

      You’d think that. But on a 5% increase that’s a lowly $150 over 12 months with the fees I pay, with them paying tax on that it’s probably $100 tops. A drop in the ocean on the average property manager’s salary. On the $20 they suggested it’s barely $50 in their pocket after tax.

      I’d think that re-letting, doing a new agreement, viewings and advertisements would generally take more than $150 of their time.

      • JIMB0 on 31/10/2023 - 22:14
        +1

        I’d think that re-letting, doing a new agreement, viewings and advertisements would generally take more than $150 of their time

        That's why they charge a letting fee, to cover their time. It's not included as part of the management fee.

        • Pelicannn on 31/10/2023 - 23:26
          +1

          Yeah fair point!

  • Stopback on 31/10/2023 - 21:47

    (true but they’re old and rundown, high maintenance for tenants with gardens, lawns, big trees

    Land lord needs to take care of garden, in fact gardens can be a bonus

    • Pelicannn on 31/10/2023 - 21:55
      +4

      Sorry but that’s wrong. If you rent a place with a garden, you are responsible for the upkeep unless your tenancy agreement says otherwise.

      Yes, to some gardens are a bonus. To others they are a hindrance. That depends on the renter’s preference.

    • MakkhiChoos on 02/11/2023 - 12:45

      Landlords that charge for garden maintenance should do.

      Else it’s tenant’s responsibility.

  • Ozbar Gain on 31/10/2023 - 22:15
    +2

    Pop your address in property.com.au and tell us what the suggested rental range is please

    • Nugs on 01/11/2023 - 07:03

      Thanks for this site suggestion
      .

  • Ghost47 on 31/10/2023 - 22:30
    +1

    Why don't you look up prices for the area and see if they're telling the truth? There are definitely lazy REAs out there, but there are also probably some REAs who actually do work.

    • Pelicannn on 31/10/2023 - 22:32
      +1

      I did. Comparable properties are near on $900-1000. Which is probably why those websites are saying that rent has gone up 7.5-20%. The problem is I don’t know if similar places have actually rented for that or that’s just what they’re asking and that is skewing statistics.

      • Ghost47 on 31/10/2023 - 22:40

        The problem is I don’t know if similar places have actually rented for that or that’s just what they’re asking and that is skewing statistics.

        I don't know what data they go off but it would be very misleading to use asking rents instead of actual rents to calculate their stats. Do you know if there's been a lot of immigration to the area? If there has been sounds like the REA is just being lazy which wouldn't be a surprise.

        • Pelicannn on 31/10/2023 - 22:48

          I’d say a lot of demand for the suburb probably peaked in COVID times due to lifestyle changes, but it’s still within 10km of the CBD which keeps demand steady. Kenmore, QLD.

          • Ghost47 on 31/10/2023 - 22:53

            @Pelicannn: Rents for Kenmore look like they've been steadily increasing over the past 5 years. I reckon you could get $800 a week.

      • miwahni on 31/10/2023 - 22:46
        +1

        Statistics are usually pulled from something like Core Logic which tracks actual rentals, not asking prices.
        Personally I would just go with REA recommendation. I don't think they're being lazy, probably just realistic. If your townhouse is in a large complex for example the agent may well manage a few of them and be very aware of the rents paid for similar properties in the same complex, or even other similar properties close by.

      • jjjaar on 31/10/2023 - 23:12
        +1

        The problem is I don’t know if similar places have actually rented for that or that’s just what they’re asking and that is skewing statistics.

        Vic has a database of moving annual rents by suburb based on property type, which actually uses the leased price, not the listed price.

        Not sure if QLD has the same, but could be worth looking for.

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