Auckland Rent Increases

[donthatetheplayer]

The latest Crockers info indicates healthy rental increases in Auckland over the past year. It looks to be up 7% - 10% in central suburbs.

This is higher than increases I have just done, which I based on 5% (but I would have increased by 10% if new tenants). What's the anecdotal experiences on the street? I think we will see another 10% increase in central Auckland over the next 12 months.

[mrsaneperson]

With the increase in bank lending rates plus councils big rates increase i think its inevitable i will need to increase rents on some of my portfolio by around $25 to $30 pw. This would equate to around 8% on a $360 pw rent of a 2 bedroom East Auckland home.

[mrsaneperson]

A link to the Crockers latest rental figures:

http://www.crockers.co.nz/media/84101/auckland%20rental%20prices%20table%20-%20february%202014.pdf

[donthatetheplayer]

Thanks msp. Looks like we are the only ones on pt increasing..

[DIY Donz]

I've just increased one in city fringe by $25/week (only 3%) and about to give notice for one in Henderson at $20/week (6%). Both are tenants in situ.

[blurt]

Thanks msp. Looks like we are the only ones on pt increasing..

After looking at the crockers data and the qv rental analysis data http://www.qv.co.nz/resources/proper...ental-analysisI'll be increasing my rents as they come up too.

[mrsaneperson]

Just done my first increase notification raising from $360 to $385 on a 2 bedroom ..Looking at Crockers for an East Auckland area i was shortchanging myself especially as the house is a good property. Lets start the ball rolling folks! Heres a sample rent increase notification letter below to act as a catalyst, Landlords unite ..YAY:

MrSaneperson

007 Bond Road,

Planet Sane



[Landlord]



Tenant DPB

Socialism Ave

HAND OUT Area 111

[Tenant]




20/03/2014

Notice of rent increase.

More than or equal to 60days notification as per the Residential Tenancies Act, 1986.

Existing rental $360 per week
Your new rent of $385 per week will commence on Friday 30th May 2014.

This includes garden & lawn maintenance.






Sincerely


MrSaneperson





Emailed & Hand delivered.

[donthatetheplayer]

Here we go:

Re: Rent Increase


Dear Mr Awesome tenant,


I would like to take this opportunity to thank you for being excellent tenants, for taking good care of 1 Lovely Ave and for always paying your rent on time. For these reasons I have avoided any rent increase for as long as possible. Nevertheless property costs are increasing and it is necessary for me to reflect these in the rent.


The new rental rate for 1 Lovely Ave will be $399 per week. This equates to a 5% increase in rent. I trust you will agree this represents value for money given the property and location. This increase will take effect on XX April 2014. Please ensure your rent payments are adjusted accordingly. I will not require an increase in payment of your bond.


As always, if there is anything at the property that needs attention please let me know and I will tend to it promptly.


If you have any concerns or would like to discuss anything please call or email me.


Yours sincerely

Happy Landlord

[donthatetheplayer]

I always invest a bit of time up front making sure I get good tenants. I look after them well and attend to anything immediately. In return they look after the property and always pay their rent on time. I'm probably the exception but I've always had great tenants. Because I don't have to worry about fixing holes in walls or chasing late rent I can reflect that in the rent charged. It's a win-win.

[mrsaneperson]

Thats so true. In the past i've been a little rushed to sign tenants on. One time my neighbour recommended her friend for my rental that person turned out to be bad from day1; due to being recommended from neighbour i didn't ask for any refs ,big mistake.
Where are all these other players [landlords] hope to get some more to "jump on board" for the rent increases.

[donthatetheplayer]

I personally meet prospective tenants. I take references from current employer and previous landlord. I also verify the employer and landlord identities. I run credit checks.

Interested to hear from others on rent increases.

[mrsaneperson]

My tenant has said she cant afford it and may have to move out. The most she can afford is only a $15 increase. My reckoning is she is living beyond her means as evidenced by her current arrears in both water & rent. I have to stick to my alloted increase.

[Davo36]

These articles should help: http://www.stuff.co.nz/business/mone...eat-to-housing

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11223783

Migration at decades high level.

[donthatetheplayer]

My tenant has said she cant afford it and may have to move out. The most she can afford is only a $15 increase. My reckoning is she is living beyond her means as evidenced by her current arrears in both water & rent. I have to stick to my alloted increase.

Sounds like you will be better off if she moves out. A tenant that is prepared to be in arrears with you isn't exactly someone you should drop the rent to hang onto.. I think she will find rents going up everywhere so by moving she will just be worse off because she'll still have to pay higher rent, but also relocation costs if she moves..

[richard56]

Hi
I spoke with my PM today and we agreed to increase my 4 bedroom in Papakura from $450 to $470.
Least than a 5% increase.
My tenants of the last 18 months told my PM that it might be the thing that makes them want to move out.

Well what do you do ?....keep the rent the same and hope they don't move or increase it and take the chance?

They have only been willing to sign up for 6 moths at a time so it is not like they have giving me any sort of long term security.

I don't think it is a smart move to let a tenancy run more than 2 years without some sort of increase.

Better to give a small increase now than run scared of losing the tenant and then have to put in a big increase later on.

Anyway the house is a very tidy brick and tile and we have always been straight on to any maintenance when asked.

They even have the lawns mowed and the gardens looked after by my team.

Lets see what happens.
Thanks
Richard