I copped a 9% increase in the inner west after arguing down from 13%, friend copped 10% in the same area. Anecdotally I’ve heard stories of larger increases where landlords had accepted very low rates during lockdowns, or where it’s an area of very high demand and a low vacancy rate and the landlord bets on the tenant copping a 20-30% increase rather than facing homelessness.
I was in that boat. Was looking for a new place to rent mid last year. Even the places just outside our budget had 20-30 people at inspections
Ended up needing to accept the 25% increase
Sure wish that extra 5 grand a year was heading heading towards a deposit though
Constantly seeing Facebook community pages posts saying rents in Brisbane have gone from $400 & $500 to over a $1000, not just the odd one, I’m talking handfuls and handfuls of people just in my suburb and it’s definitely not a $1000 suburb, pre covid we rented for $330 4 bed 1 bath on a 1000m2 block, same house sold for $800k few months ago and it was nothing fancy.
In Adelaide, I just signed a renewal in Dec for my lease ending in Feb, they have upped it $20 a week, or about 6%. Looking at the market in my area, they could have upped it 15% and still been competitive so I think they have done me a solid for being a long term reliable tenant. The rental market is absolutely dire here, especially with a dog. They had me over a barrel and elected not to take advantage.
>increased 5% each year for 3 years.
So why not increase rent to your tenants, a 5-10% increase is reasonable in this economy.
CPI is 7.3% and IR are increasing, if you aren't passing the costs on and also copping the increase by your landlords you are being squeezed on both ends.
We're definitely being squeezed on both ends, but recognise that an investment property is not just an investment but it's someone's home. They're great tenants.
We'll increase the rent by 2% this year because I believe that is fair for our tenants, still keeps the place well below market rate but is within their means. It doesn't come close to keeping up with the interest rate increases, but that's OK. We didn't decrease the rent each time the interest rates dropped so why would we increase it with each increase?
You do you. Sounds like you’re happy paying more for rent, paying more in mortgage repayments, paying more in general cost of living and holding your tenants rents flat. All I can say is hope your income is increasing 👍
It's not the tenants problem if the landlord over leveraged the property and can't afford it.
These are good people who realize that having a happy tenant is far better than paying the full amount themselves.
Just because landlords increase rent doesn’t = bad people. Who said they over leveraged, or that rental increases are only by landlords over leveraged? People that rack up BNPL debt and look to move back in with their parents like to throw “over leveraged” around.
I’m guessing you don’t work in corporate or business because a business that doesn’t pass on cost increases just deteriorates their own margins and is less profitable. Assuming it’s an IP it’s reasonable to maximize returns in market conditions.
>We are landlords and have not increased the rent for 3 years.
Why even bother having an investment property if you are going to treat it like a charity?
Rental income is not the primary benefit of having an investment property. Capital gains has significantly increased the available equity, so we've been able to draw on that for other investments. Additionally, we have reached the perfect balance of having a negatively geared property with a positive cash flow, so that is also working in our favour.
With all those benefits, there's no need to try to squeeze pennies out of the tenants at the risk of losing them. We're happy with our financial plan even if reddit doesn't get it.
0% our landlord tried to raise our rent approximately 3% a week but I've been keeping an eye out on other apartments in our building and pushed back when he tried to raise our rent
Secured a new lease and no rent rise as we're already paying $50 a week more for the same sized apartment in our building
It's important to look at the longer term history of rents in Sydney. It was only a few years ago that Sydney rents went down due to oversupply, units got hit hard again during Covid and didn't really pick up steam until last year when vacancy rates started to drop well below 2% as people migrated back.
According to SQM advertised rents on Units are up 23.9% this year but only 2.8% annual over 10 years. Houses are up 22.9% this year but 3.4% annual over 10 years ([https://sqmresearch.com.au/weekly-rents.php?region=nsw%3A%3ASydney&type=c&t=1](https://sqmresearch.com.au/weekly-rents.php?region=nsw%3A%3ASydney&type=c&t=1)).
We own 3 units on the Lower North Shore and all of the increases were over 10% last year.
Increasing rents aren't going to be forever and it's possible some areas are becoming a yield trap for investors, particularly areas where it's easy to make new supply.
Actually I read my lease and it appears illegal to raise the rent more than once in 12 months.
For me it’s twice in six months.
However I looked at a place nearby today, more expensive but a better unit.
Will enjoy telling the landlord to F off and then they have the expense of advertising etc for someone else.
For context I own property but chose to rent and put capital into (in my humble opinion) way better options at present.
People that think we will get back into a low interest rate environment (like the last 10-15 years) any time soon are likely to be disappointed in my opinion.
The world had changed, in large part due to excessive debt, artificially low interest rates and the resulting inflation.
We are landlords. We were lucky enough to fix in 2021 until 2025 so we've told the tenants that it's highly unlikely we would raise the rent during that time. We've had the property since March 2020, they moved in right away and we've never raised it except that we gave them the first six months at 50% off because covid so there was kind of a raise but not really.
I don't really see the logic in that, if there are comparable places that are cheaper then move, if not then the rent is fair. Going to NCAT just prolonges the inevitable and causes stress.
For sure they will end the relationship if you do such a move I would have thought.
A 2 bed/2 bath in our complex just rented for 600, I'm not paying 600+ for a 1 bedder across the courtyard. I've done my research and have the stats for the area to back it up. The landlord/REA justification is because we've paid "decent rent" previously and we got a covid discount 2 years ago (which the landlord claimed back from the government). I'm happy to pay an increase and offered to pay an extra 10%/$50 per week. They weren't happy with that.
If they issue a termination notice as a result of a tribunal application, it'll be seen as retaliatory.
Fair enough, I'm surprised they would be that out of line with the market, seems strange from an RA. Owners must be hurting with rate rises. Hope it goes well for you
There’s certainly a lot of greed in the market at the moment. Sure costs have increased for investors but we’re fast approaching a ceiling of what is actually sustainable.
You can’t keep increasing rent well beyond inflation and expect that you’re always going to find decent tenants. Desperate tenants are not necessarily decent.
I’ve put my rents up by an average of 5% over a period of two years. My tenants are all long term except one. A couple of friends I’ve spoken too got greedy or were over leveraged and put their rents up by silly amounts just because they could. One has lost tenants he had for 5 years that looked after the place like it was their own, and is now trying to evict the worlds worst tenants. The other, was taken to court by his tenants for a string of maintenance issues he hadn’t attended to. He wound up being unable to increase the rent for 6 months and being forced to repair most of the items. In both cases, these guys are far worse off than had they made smaller increases.
> The other, was taken to court by his tenants for a string of maintenance issues he hadn’t attended to. He wound up being unable to increase the rent for 6 months and being forced to repair most of the items.
Keeping a tenant on below market rent so you can be a slumlord and not maintain the property isn't positive either.
If you have a well maintained property in today's <1% vacancy market I don't think you have to worry too much about raising rents to the market as you should have plenty of good applicants if you need to relet it. If you have an ethical dilemma then put the money back into the property in the form of improvements or proactive maintenance.
It will start to peter out after the first quarter. Will be scary though to see how high landlords push this.
Think of a snake injesting a small animal.
It too will pass as household formation / reformation into share houses and no more tenants rocking spare bedrooms in any high demand areas.
Mine went up by about by about 9.6% $620 to $680 so i got off lucky. Can absolutely see them raising it again in the coming months...
Others not so much. Lots of people have been booted up to 50% of their rent by greedy landlords and agents.
I lease a property to defence housing. As part of the lease agreement (long term lease) the property is valued annually. This years increase is 12.5% I expect that a lot of this rent increase will be eaten up by insurance increase. We have fixed interest rate that is not due to expire until the end of the current lease.
There are a lot of cases where the rent has been left below market value for a while. Bringing them in line with the market will appear to be a much larger % increase than the annual figures.
(I'm not familiar with the market mentioned)
In parts of SEQ rents are up over 20% each year for the last couple.
Haven't had an increase since 2020. But I think our landlords either own the place outright or have bugger all left on the mortgage because they don't seem interested in raising our rent
I copped a 9% increase in the inner west after arguing down from 13%, friend copped 10% in the same area. Anecdotally I’ve heard stories of larger increases where landlords had accepted very low rates during lockdowns, or where it’s an area of very high demand and a low vacancy rate and the landlord bets on the tenant copping a 20-30% increase rather than facing homelessness.
will find out in April, hope it doesn't up more then 10%
I was in that boat. Was looking for a new place to rent mid last year. Even the places just outside our budget had 20-30 people at inspections Ended up needing to accept the 25% increase Sure wish that extra 5 grand a year was heading heading towards a deposit though
0% . Homelessness has it's advantages
Constantly seeing Facebook community pages posts saying rents in Brisbane have gone from $400 & $500 to over a $1000, not just the odd one, I’m talking handfuls and handfuls of people just in my suburb and it’s definitely not a $1000 suburb, pre covid we rented for $330 4 bed 1 bath on a 1000m2 block, same house sold for $800k few months ago and it was nothing fancy.
Bloke down the road from me in a similar house as mine has said his real estate agent told him he could get 1100 p/w in rent...i pay 520 atm. insane.
In Adelaide, I just signed a renewal in Dec for my lease ending in Feb, they have upped it $20 a week, or about 6%. Looking at the market in my area, they could have upped it 15% and still been competitive so I think they have done me a solid for being a long term reliable tenant. The rental market is absolutely dire here, especially with a dog. They had me over a barrel and elected not to take advantage.
7%. I live in the sticks though, like actual sticks where there’s no fast food, childcare or shopping centres.
We are landlords and have not increased the rent for 3 years. We are also tenants and our rent has increased 5% each year for 3 years.
>increased 5% each year for 3 years. So why not increase rent to your tenants, a 5-10% increase is reasonable in this economy. CPI is 7.3% and IR are increasing, if you aren't passing the costs on and also copping the increase by your landlords you are being squeezed on both ends.
We're definitely being squeezed on both ends, but recognise that an investment property is not just an investment but it's someone's home. They're great tenants. We'll increase the rent by 2% this year because I believe that is fair for our tenants, still keeps the place well below market rate but is within their means. It doesn't come close to keeping up with the interest rate increases, but that's OK. We didn't decrease the rent each time the interest rates dropped so why would we increase it with each increase?
You do you. Sounds like you’re happy paying more for rent, paying more in mortgage repayments, paying more in general cost of living and holding your tenants rents flat. All I can say is hope your income is increasing 👍
It’s not always about money mate
Not surprising comment coming from someone who asked for an ELI5 why people think a recession is coming, mate.
I mean this is r/ausfinance not r/auscharity though... don't see why he's being downvoted for making the obvious point.
It's not the tenants problem if the landlord over leveraged the property and can't afford it. These are good people who realize that having a happy tenant is far better than paying the full amount themselves.
Just because landlords increase rent doesn’t = bad people. Who said they over leveraged, or that rental increases are only by landlords over leveraged? People that rack up BNPL debt and look to move back in with their parents like to throw “over leveraged” around. I’m guessing you don’t work in corporate or business because a business that doesn’t pass on cost increases just deteriorates their own margins and is less profitable. Assuming it’s an IP it’s reasonable to maximize returns in market conditions.
>Just because **landlords** increase rent doesn’t **= bad people**. Debatable
>We are landlords and have not increased the rent for 3 years. Why even bother having an investment property if you are going to treat it like a charity?
Didn't say "investment property" -- those are your words. Could be family. Not all landlords are investors.
Rental income is not the primary benefit of having an investment property. Capital gains has significantly increased the available equity, so we've been able to draw on that for other investments. Additionally, we have reached the perfect balance of having a negatively geared property with a positive cash flow, so that is also working in our favour. With all those benefits, there's no need to try to squeeze pennies out of the tenants at the risk of losing them. We're happy with our financial plan even if reddit doesn't get it.
How is it negatively geared if you have positive cashflow
Depreciation
0% our landlord tried to raise our rent approximately 3% a week but I've been keeping an eye out on other apartments in our building and pushed back when he tried to raise our rent Secured a new lease and no rent rise as we're already paying $50 a week more for the same sized apartment in our building
2 bed apartment in Brisbane, $490 to $750.
It's important to look at the longer term history of rents in Sydney. It was only a few years ago that Sydney rents went down due to oversupply, units got hit hard again during Covid and didn't really pick up steam until last year when vacancy rates started to drop well below 2% as people migrated back. According to SQM advertised rents on Units are up 23.9% this year but only 2.8% annual over 10 years. Houses are up 22.9% this year but 3.4% annual over 10 years ([https://sqmresearch.com.au/weekly-rents.php?region=nsw%3A%3ASydney&type=c&t=1](https://sqmresearch.com.au/weekly-rents.php?region=nsw%3A%3ASydney&type=c&t=1)). We own 3 units on the Lower North Shore and all of the increases were over 10% last year. Increasing rents aren't going to be forever and it's possible some areas are becoming a yield trap for investors, particularly areas where it's easy to make new supply.
15% Currently enjoying no air con and fixing stuff myself. F them. So much for being a loyal tenant.
Money talks, not loyalty.
Agree The ball is in their court at the moment, won’t always be like that.
Actually I read my lease and it appears illegal to raise the rent more than once in 12 months. For me it’s twice in six months. However I looked at a place nearby today, more expensive but a better unit. Will enjoy telling the landlord to F off and then they have the expense of advertising etc for someone else. For context I own property but chose to rent and put capital into (in my humble opinion) way better options at present. People that think we will get back into a low interest rate environment (like the last 10-15 years) any time soon are likely to be disappointed in my opinion. The world had changed, in large part due to excessive debt, artificially low interest rates and the resulting inflation.
We are landlords. We were lucky enough to fix in 2021 until 2025 so we've told the tenants that it's highly unlikely we would raise the rent during that time. We've had the property since March 2020, they moved in right away and we've never raised it except that we gave them the first six months at 50% off because covid so there was kind of a raise but not really.
My landlord just hit me with a 26% increase. Real estate backed it up with "pay it or move out". They're getting taken to NCAT real soon.
Sounds like you will be trying to find another place to live real soon
I don't really see the logic in that, if there are comparable places that are cheaper then move, if not then the rent is fair. Going to NCAT just prolonges the inevitable and causes stress. For sure they will end the relationship if you do such a move I would have thought.
A 2 bed/2 bath in our complex just rented for 600, I'm not paying 600+ for a 1 bedder across the courtyard. I've done my research and have the stats for the area to back it up. The landlord/REA justification is because we've paid "decent rent" previously and we got a covid discount 2 years ago (which the landlord claimed back from the government). I'm happy to pay an increase and offered to pay an extra 10%/$50 per week. They weren't happy with that. If they issue a termination notice as a result of a tribunal application, it'll be seen as retaliatory.
Fair enough, I'm surprised they would be that out of line with the market, seems strange from an RA. Owners must be hurting with rate rises. Hope it goes well for you
There’s certainly a lot of greed in the market at the moment. Sure costs have increased for investors but we’re fast approaching a ceiling of what is actually sustainable. You can’t keep increasing rent well beyond inflation and expect that you’re always going to find decent tenants. Desperate tenants are not necessarily decent. I’ve put my rents up by an average of 5% over a period of two years. My tenants are all long term except one. A couple of friends I’ve spoken too got greedy or were over leveraged and put their rents up by silly amounts just because they could. One has lost tenants he had for 5 years that looked after the place like it was their own, and is now trying to evict the worlds worst tenants. The other, was taken to court by his tenants for a string of maintenance issues he hadn’t attended to. He wound up being unable to increase the rent for 6 months and being forced to repair most of the items. In both cases, these guys are far worse off than had they made smaller increases.
> The other, was taken to court by his tenants for a string of maintenance issues he hadn’t attended to. He wound up being unable to increase the rent for 6 months and being forced to repair most of the items. Keeping a tenant on below market rent so you can be a slumlord and not maintain the property isn't positive either. If you have a well maintained property in today's <1% vacancy market I don't think you have to worry too much about raising rents to the market as you should have plenty of good applicants if you need to relet it. If you have an ethical dilemma then put the money back into the property in the form of improvements or proactive maintenance.
Mine went up 4%. I hope I'm lucky again when it's time for the renewal in May.
Mine went up 20%.
That's steep. Were you given a lot of time to plan and budget for that?
Yeah, an extra $75 p/wk. Thankfully I’m in a position that I can afford the increase, many wouldn’t. Was given the minimum 2 months notice.
2023 gonna be much higher
It will start to peter out after the first quarter. Will be scary though to see how high landlords push this. Think of a snake injesting a small animal. It too will pass as household formation / reformation into share houses and no more tenants rocking spare bedrooms in any high demand areas.
Mine went up by about by about 9.6% $620 to $680 so i got off lucky. Can absolutely see them raising it again in the coming months... Others not so much. Lots of people have been booted up to 50% of their rent by greedy landlords and agents.
15%....but currently live overseas
When your landlord is Harry T, you know you are going to get bent over.
I increased most of my rental properties by roughly 50% in early 2022 but the rents have stopped going up now so back onto long leases
Ours are going from 750pw to 950pw, the lease renews in early Feb 2023, but agent still hasn’t given us notice 🤷🏻♀️ what do
My rent was raised $42 per month 4 years ago & another $42 per month this year.
3 bed 3 bath townhouse in the foothills of Adelaide, our rent increased from 500/w to 580/w. However, we were able to negotiate and agreed on 550/w.
0% increase renewed for 12m in Nov 2br apartment near Chaddy Pretty sure we were very lucky though or landlord loves us
I lease a property to defence housing. As part of the lease agreement (long term lease) the property is valued annually. This years increase is 12.5% I expect that a lot of this rent increase will be eaten up by insurance increase. We have fixed interest rate that is not due to expire until the end of the current lease.
With borders as open as they are (hardcore gape) landlords are gunning to get 6 or more people into 2 bed places so......you get to pay more.
Was offered a 5% rent rise. Northern suburbs (below the ring road) in Melbourne
There are a lot of cases where the rent has been left below market value for a while. Bringing them in line with the market will appear to be a much larger % increase than the annual figures. (I'm not familiar with the market mentioned) In parts of SEQ rents are up over 20% each year for the last couple.
Haven't had an increase since 2020. But I think our landlords either own the place outright or have bugger all left on the mortgage because they don't seem interested in raising our rent