While rents have already risen most commentators (including this one) agree there is further growth to go. Owners are asking what is the best time to increase the rent and renters are asking can I lock in a longer term lease to protect against future increases. The question of how much the rent will rise for your specific apartment (owned or rented) depends very much on how the current rent relates to market value and what is happening with your micro market.
While the market rent for apartments generally dropped during covid, the passing rent for some specific apartments remained unchanged meaning their actual rent is already close to market levels. Once you understand where your specific apartment sits in the market you can then plan for your best approach. We are finding the market rent can vary between suburbs and buildings.
A couple of things to keep in mind is that in Victoria, the rent can not be increased during the term of a lease (unless there are agreed increases) and even outside of a lease term the rent can only be increased once every 12 months. So if the lease has expired and the rent has not been increased for 12 months then the question for an owner is do you ask for an increase now, or wait for the market to rise further to capture more of the growth. For a renter you most definitely want to lock in a new lease now.
Please contact us for specific advice on your situation so you can get the best outcome.
