Zero tolerance policy on late rent reviews

Maximise your returns with regular rent reviews

Our number one driver in helping property owners manage their properties should be to increase their rental income. But it’s not always the case at other agencies. We know the industry gets a bad rap for agents with dollar signs in their eyes and a reluctance to manage properties proactively. That’s why Dynamic Residential is re-setting the benchmark for service and customer care in Australia’s real estate sector.

The team at Dynamic Residential make it our mission to see you maximise your returns. Together, we work with you, implementing best practices and innovative systems to make the property management process effortless and, most importantly, lucrative.

One way we do this is through a non-negotiable approach to the rent review process. In short, we have a zero-tolerance policy on late rent reviews. Why? Because it can be a valuable opportunity to increase rent if you line all your ducks up in a row and do your due diligence.

This article outlines how a regular rent review cycle benefits any property owner and rental provider. Here, you’ll also learn how we undertake a rent review and how Dynamic Residential, with our innovative property technology, is helping make this process smart and revolutionary for our clients and Melbourne’s property industry.

Why you should undertake regular rent reviews

Firstly, the purpose of having a rent review is to keep your property’s rental rates in line with the rest of the market according to location, property type, property size, features, condition, and age.

We want to ensure what you are charging your renters is a fair amount, aligned with the rates of nearby, similar comparable properties. And lastly, don’t forget supply and demand, which dictates much of the research we undertake to ensure your property is asking for adequate rent.

If you don’t keep up with regular rent reviews, you can expect either of these things to happen…

1. If you are charging too much rent, you may soon find your renters leaving your home for a cheaper option. This will then put you at risk of experiencing prolonged vacancy and loss of revenue while trying to find new renters willing to pay your rental rates.
2. If you are charging too little rent, you may miss out on additional income that you are entitled to based on similar comparable properties in your area and what the market supports. This is the area that the Dynamic Residential property management team are passionate about; increasing clients’ revenue through property best practices.

Either way, it pays for your property manager to be on top of rent reviews, so you are equipped with thorough research and expertise to ensure what you need to be charging for rent. If you let your rent reviews happen when your agent feels like conducting one, you could be missing out on some big bucks, which ultimately hurts you, the rental provider.

What factors make a similar comparable property?

For us to know whether your property is charging rent in line with current market conditions, we need to compare it with a selection of similar comparable properties.

Below is the checklist of categories that guide our research and determine similar properties for your rent review:

1. Property type – Is your property an apartment, a townhouse or a freestanding home? We will begin our search for properties matching your type.
2. Size – Square meterage and bedroom and bathroom size are important factors when we look for properties like yours.
3. Location of the property – Along with the suburb you’re in, we’ll also research the supply and demand of homes in the area and look to neighbouring suburbs if applicable.
4. Proximity to amenities – If your property is close to transport and conveniences, we’ll use these when casting the net. Still, we will also look at properties that may not be, for example, and calculate an ideal rent with this in mind.
5. The general condition of the premises – If your property is dated, we won’t compare it with a property that’s just been renovated as it will give a higher rental rate than you could fairly charge.
6. Property features – Is there an outdoor entertaining area? Is it newly renovated? Is there a butler’s pantry and more than one toilet? Is the property located on a big block and family-friendly? These are all crucial factors in determining rental value.
7. Age of the property – While old homes can be beautiful if maintained and restored, not all age equally. The same goes for newer homes. While it doesn’t tell the whole story of a property’s condition, it is important when grouping similar properties together.

There are laws you need to follow when conducting a rent review in Victoria

Every rent review must be undertaken in line with Victorian laws, specifically the Residential Tenancies Act 1997. To avoid heavy fines and bans, all rental providers must understand relevant laws and legislation changes. In short, you cannot increase your renters’ monthly rent if you feel it’s warranted. Additionally, you are obligated to give your renter sufficient notice of your intention to increase rent.

A rental provider can only increase rent once every 12 months, along with the following:

1. Rent increases are forbidden during a fixed-term lease period.
2. A rental provider must provide a minimum of 60 days notice in writing in the case of a rent increase.
3. A rent increase cannot be used to penalise a renter. In a dispute, seek the assistance of your property manager and abide by the tenant rights in your state.

For more information on your obligations concerning Victorian rent reviews, read our blog here.

How Dynamic Residential manages regular rent reviews

1. Our state-of-the-art property portal will send your dedicated Dynamic Residential property manager a reminder that your rent review is coming up. That means no missed reviews (and potential for rent increases), even if your property manager has many properties in their remit. Unlike other agencies, they won’t overlook you.
2. Your property manager will complete a market review within three months of your current fixed-term agreement expiring. We’ll consider all factors listed above and put this in a comprehensive, easy-to-understand report.
3. If your lease agreement is periodic, we’ll undertake your review every nine months from when the previous rent increase took effect.
4. We’ll then get in contact with you to discuss our findings and our recommendations. Where possible, we’ll look at the information that supports an increase which we will share with you during our review.
5. If our research determines that we can offer your renter a lease renewal, we’ll discuss the next steps to get the process started so that you can enjoy additional revenue as soon as possible. This will be in line with the Residential Tenancies Act 1997.
6. If the rental review results in no predicted rental increase, we will set a new review date when we feel the market will support one. By updating all details and history in our property portal, we’ll have all the information we need to revisit it efficiently next time.

How can we guarantee that your rental review will happen?

Easy. At Dynamic Residential, we incentivise all our property managers to conduct thorough and timely rent reviews with every client in their remit. As a valued client, you won’t be forgotten or missed due to other commitments. We give all of our clients the five-star Dynamic service treatment. It’s how we’re working on revolutionising Melbourne property management.

Are your current property managers letting you down? Need a property manager dedicated to looking after your best interests and working to increase your rental returns? Look no further than the team at Dynamic Residential, Melbourne’s boutique property agency with the full-service approach. Call us today on +61 3 8600 1200.