As a property investor, reviewing your rental income regularly is important to get the maximum returns of your investment. For landlords in Hurstville and the surrounding suburbs, understanding how rent reviews work and being proactive about them can have a significant effect on your financial success.
What Influences Rent Prices?
Rent prices are primarily shaped by supply and demand. In a popular area like Hurstville, where residential and commercial properties are in constant demand, rental values tend to rise over time. As Sydney continues to grow and attract more residents, competition for quality rentals increases, which naturally pushes rents higher.
However, it’s not a given that rents will always go up. If there’s an oversupply of properties in the area, landlords may need to be more strategic when adjusting rent to stay competitive. A rent review ensures your property is in line with the current market and brings in the right returns for your investment.
How Often Can You Increase Rent?
In New South Wales, rent for residential properties can only be increased once every 12 months, and in many cases, tenants must “get at least 60 days written notice of an increase (NSW Government, n.d.).” Additionally, any rent increase must be reasonable and reflect the current market rates.
It’s important for landlords to be aware of these rules to avoid misunderstandings with tenants and to ensure the correct processes are followed. Regular reviews, done in compliance with these guidelines, allow you to adjust rent as needed without causing disruptions.
Why It’s Important to Be Proactive
Many landlords wait until the end of a lease to consider adjusting the rent, but this approach can mean missed opportunities. In areas like Hurstville, where the rental market can change quickly, it’s essential have yearly rent reviews to keep your property at a fair and profitable rate.
By reviewing the rent every 12 months, you can ensure that your property reflects market conditions and is bringing in the income it should. Failing to do so could mean you’re undercharging compared to similar properties in the area. On the flip side, increasing rent too much without considering tenant feedback or local trends could lead to vacancies, which are far more costly than minor adjustments.
Being proactive ensures your property remains competitive, and it helps to prevent bigger financial issues down the road.
Setting the Right Rent
When reviewing rent, it’s not just about charging more. The goal is to find the right balance between market demand and keeping good tenants. A rent that’s too high might drive away quality tenants, leaving you with an empty property and the added costs of finding new occupants. On the other hand, undercharging means you’re not getting the returns you deserve from your investment.
At Mclaws Property, we help landlords with accurate market appraisals so you can be confident you’re setting the right rent. We consider local market developments, tenant feedback, and the condition of your property to ensure you get the best possible return. Our team knows Hurstville inside out, and we’re here to guide you through every step of the rent review process.
Expert Advice for Your Rent Reviews in Hurstville
Reviewing your rent annually is a simple but effective way to keep your investment on track. It ensures your rental income keeps pace with market changes, and it helps prevent financial shortfalls in the future. With Mclaws Property, you’ll have a dedicated team to help you make informed decisions about your property and rent reviews, making the process straightforward and less stressful.
If you’re unsure whether your current rent is in line with market conditions, contact us today to discuss your investment property. We’ll provide a comprehensive appraisal and professional advice to help you make sure you’re heading into earning maximum profit without risking tenant turnover.
Don’t wait until it’s too late. Make regular rent reviews a key part of your investment strategy and ensure your property in Hurstville continues to deliver solid and stable returns.