Rates to further drive rents

Navigating the rising interest costs - a strategic approach for landlords

In today’s ever-evolving property market, landlords are facing unprecedented challenges, particularly with the looming increase in interest rates set by the Reserve Bank.

These changes are significantly impacting property owners, heightening the need for strategic approaches to mitigate the financial pressures. At MRE, with over three decades of experience in the property market, we understand the necessity of a proactive strategy that extends beyond the scope of traditional property management, empowering landlords to make informed decisions, especially concerning rental adjustments.

Evaluate the current situation

The journey begins with a thorough assessment of your current rental situation. A critical question to consider is whether your tenants are paying market rent. While many property owners rely on their property managers for advice on rental rates, it’s crucial to delve deeper. Are these managers accurately and effectively determining market rents?

A different perspective

Steve Fitzsimon, MRE’s Director of Business Growth, advocates for a more hands-on approach. He advises landlords to not solely depend on their property managers for such crucial assessments. “As a useful exercise, compare your property with others listed for lease online. This is what most renters do when they receive a notification about a rent increase,” he suggests. This method offers a real-time comparison and a better understanding of the market.