I DON'T WANT TO CHARGE THE FULL MARKET RENT
We all want to have good tenants in our rental properties. A property manager’s main purpose is to ensure right from the start that quality time has gone into ensuring each prospective tenant’s rental references have been thoroughly screened, employment details confirmed and details checked against national tenancy default databases available.
We commonly deal with landlords who want to keep the rent down below market rates because they have great tenants and do not want to upset them by charging more.
Though on the surface this action seems admirable, we need to look at it realistically. Firstly, some landlords have a fear that if they increase the rent to full market rates, this will upset their good tenants causing them to leave (for example, at the end of a fixed term agreement). However if the tenant did have to vacate because of having to pay full market rates and move to another property elsewhere, it is likely that they will also have to pay market rates for their new rental accommodation.
The cost of relocation is also a consideration. Moving costs can be substantial and arranging for their utilities like electricity and phone/internet to be connected, usually with disconnection and new connection fees also adding to the stress of moving, it would certainly be a costly and uncomfortable exercise to consider just because they have to pay market rent!
It makes sense that we need not fear keeping rents at market rates, as this is not likely to be a factor that would motivate tenants to leave a property. Tenants leave for all sorts of valid reasons but we can rest assured that having to pay full market rent is not one of them!
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