Instead of increasing our tenants to an inconsistent amount every year or keeping them at the same rent, we conduct thorough market rent assessing every year. We do however like to reward our tenants for continuing on with us so a rent reduction amount is encouraged but this is of course at the investor’s discretion and if you are one to want to keep the rent the same for the second year too, we support this too.
We usually offer between $5 to $15 but the amount offered is the investor’s choice. I also fully respect any investors who prefer to keep their tenants rent at the same amount but my important advice is to ensure that you disclose within their tenancy agreement what the market rent is so if you were to sell the property, you are in no way disadvantaged. Here is an example of the special condition we put in our agreement:
S2.X Market Rent Reduction
The Tenant/s are aware that Housingplus has set the rent (stated on the front of this Tenancy Agreement) to $10.00 below market rent (as assessed by Housingplus) to reflect the history between Housingplus and the tenants. The Tenant/s understand that this benefit is not transferable to a third party.
Wanting to know how much your property would be rented for? Without seeing your property, we won’t be able to tell you how much we can rent your property for. Our first steps are conducting a free rental appraisal. When we assess your properties current market rent value, we factor in the following conditions:
- Location
- Condition/Age
- Additional Features
- Access
- Bedroom size
Our second step is comparables. What’s on the current rental market? What are reports online telling us? What do we have in our portfolio which is similar? We also have access to online resources eg. tenancy services/trade me reports and every year we conduct our own in-house market research.
Not happy with our rent assessment and want something higher? At Housinplus we achieve fair, market rents. If you wish to go against our recommendations and list your property at a higher rent than what we believe is fair market rent then you risk your property staying vacant for longer.