When to adjust the rent: a guide for Brisbane landlords
All landlords want to achieve the highest possible rent for their property, as do their Property Managers. What’s equally important is having a good tenant in place paying rent. Sometimes the blinkers come on and landlords and agents can be guilty of seeing only the rent they want and not the rent they are losing by having the property vacant. So what’s better for you financially? To get the best possible rental price, or reduce the vacancy of the property?
- $500 per week for 6 months is $13,000
- $500 per week for 6 months but with a vacancy of 3 weeks is $11,500
- $480 per week for 6 months is $12,480
- $480 per week for 6 months but with a vacancy of only 1 week is $12,000
Leaving your property sit vacant for more than a week or two can be more detrimental to your bottom line than you think.
People also talk about the benefits of keeping your tenants happy by only charging them a sensible rent and not pushing their limitations too much. This can be true and there’s no doubt a low turnover of tenants, provided they look after the property and pay their rent, will save you money.
So do your calculations and have a game plan in mind for when your properties become vacant. And most importantly of all, use a property manager you trust and who knows the market.