Raising your rent: how much is too much?

[BusinessTech]

Raising your rent: how much is too much?

It is a rule of basic economics that along with petrol, food prices and everything else, rentals need to increase annually.

 

[freddster]

wELL, by how much did petrol, food , DSTV etc go up...

 

[genetic]

wELL, by how much did petrol, food , DSTV etc go up...

Usually petrol, food etc don't have anything to do with rent. It's less relevant. How much did tyre prices go up by?

Interest rates, inflation and demand have more of an effect.

 

[Hamster]

Usually petrol, food etc don't have anything to do with rent. It's less relevant. How much did tyre prices go up by?

Interest rates, inflation and demand have more of an effect.

Think that's what he meant.

 

[gimpex]

Unless your rent is not market related , I normally raise it by 5%. It's easy round number and no one can argue it's not inflation related. Whether inflation is 6 or 7 or 4 percent is all subjective depending which figures you use but if you have a good tenant ..... Not worth the discussion.

 

[Kosmik]

Unless your rent is not market related , I normally raise it by 5%. It's easy round number and no one can argue it's not inflation related. Whether inflation is 6 or 7 or 4 percent is all subjective depending which figures you use but if you have a good tenant ..... Not worth the discussion.

If I had a rental prop, thoughts would be similar. Keep it in line with inflation and marketable property around me.

 

[freddster]

Ok, keep it to inflation. Can one really believe that inflation is sitting at 6%? I don't. I've seen many products go up by much more than that.

 

[Hamster]

If I had a rental prop, thoughts would be similar. Keep it in line with inflation and marketable property around me.

It's probably better for you to keep it slightly below that. If the guy renting decides to leave because he cannot afford (or deem it just too expensive) and you sit without a tenant for just one month it will take you quite a while to make up that loss.

If you have a good tenant and you are at the very least breaking even I would assume it be a good idea to try keep them. My rent was increased by 3.65% starting end of this month.

 

[Slootvreter]

Mine jumped up 10%, I told the agent to go get fcked, and left.

 

[cguy]

It's probably better for you to keep it slightly below that. If the guy renting decides to leave because he cannot afford (or deem it just too expensive) and you sit without a tenant for just one month it will take you quite a while to make up that loss.

If you have a good tenant and you are at the very least breaking even I would assume it be a good idea to try keep them. My rent was increased by 3.65% starting end of this month.

Agreed - a bad tenant can make your life a nightmare, so try hold on to the good ones. I've had the same tenant for going on 6 year now. I charge them about 20% below market rates. In 6 years, all I've had to do is replace some carpets once and fix the air-conditioning once.

In contrast, previous tenants of a family member, have: Put hundreds cigarettes out on the side of bath (burning the plastic). Started a wood fire in the (electric) oven. Started a wood fire in the living room (which was carpeted) for cooking.

 

[Papsak]

Started a wood fire in the (electric) oven. Started a wood fire in the living room (which was carpeted) for cooking.

Only fair, the stove in the kitchen didn't have a chimney.

:crylaugh:

 

[Adenoid Hynkel]

Usually petrol, food etc don't have anything to do with rent. It's less relevant. How much did tyre prices go up by?

Interest rates, inflation and demand have more of an effect.

Well, it does in some way, to some extend. Your rental property needs maintenance. Fuel goes up, everything else goes up.

 

[cguy]

Only fair, the stove in the kitchen didn't have a chimney.

:crylaugh:

Never thought of it that way...

 

[Billy]

Inflation on Municipal charges is above the CPI. This also affects the levies.

I work on a figure of CPI plus 0.5%, and adjust to market rates if a tenant leaves.

You may argue that the CPI is wrong on a year to year basis, but if you check back, over time the figures seem correct.

http://www.inflationcalc.co.za/ Check your expenses over time here.

 

[Slootvreter]

Well, it does in some way, to some extend. Your rental property needs maintenance. Fuel goes up, everything else goes up.

Fuel goes down, nothing else goes down.

 

[pinball wizard]

Ok, keep it to inflation. Can one really believe that inflation is sitting at 6%? I don't. I've seen many products go up by much more than that.

Yeah, so increase your rental by 15-20% and have your property sitting vacant. Simple really. The renters are under pressure precisely because of the real effect of inflation, and probably can't absorb much more.

 

[Slootvreter]

Ok, keep it to inflation. Can one really believe that inflation is sitting at 6%? I don't. I've seen many products go up by much more than that.

It is probably around 6%, but then you get corporate greed.

 

[freddster]

Yeah, so increase your rental by 15-20% and have your property sitting vacant. Simple really. The renters are under pressure precisely because of the real effect of inflation, and probably can't absorb much more.

No I won't do that.

It is probably around 6%, but then you get corporate greed.

And this is the problem here. Ok drought included, like Maize went from R22 /kg to R33. 50%. the milk I buy is 10%. Probably only bread thats still wangled for the poor. Don't even going to mention meat. 10%+. FFS! Problem is this Rand gaining is not gonna improve things much, importer will pay cheaper, prices at the end of the line won't go down.

 

[Garson007]

Unless your rent is not market related , I normally raise it by 5%. It's easy round number and no one can argue it's not inflation related. Whether inflation is 6 or 7 or 4 percent is all subjective depending which figures you use but if you have a good tenant ..... Not worth the discussion.

You clearly do not live in Cape Town. Our rental increases are 10% in a good year.

 

[gimpex]

You clearly do not live in Cape Town. Our rental increases are 10% in a good year.

Nope. I don't

I don't really know but with all the new developments that are coming around the greater Cape Town , I guess that 10% is area dependent too. Pretty much like elsewhere ....