Property manager tells landlords to hike rent by 20 per cent, says tenants ‘agreeable’

A Brisbane rental property manager has been slammed after it encouraged landlords to increase rent, saying tenants were “agreeable” to hikes.

A Brisbane rental property manager has been slammed by rental advocates after it encouraged inner-city landlords to reassess how much they charge in rent, suggesting some should increase their rents by 20 per cent before the end of the year.

In a letter sent to landlords, Ray White West End said its property managers were recommending rental increases by an average of 17 per cent.

“As we are planning December lease renewals, the ­average lease renewal recommendation is above 20 per cent,” the note read.

“This can be as much as $10,000 per year in additional rental income.”

Ray White Queensland Chief Executive Jason Andrew said, in a statement, the business had sympathy for renters, but had a “duty to report the facts to landlords”.

The letter was sent to landlords suggesting some could increase their rents by 20 per cent before the end of the year. Photo: 7 News

Mr Andrew said it was a real estate agent’s job to communicate the state of the market so clients could make fully informed decisions.

“That is our responsibility. We accept this is an emotional issue and we don’t pretend that it isn’t, and we are not ambivalent to the needs of our tenants,” he said.

“The fact is there are not enough houses for people to rent. That is the real issue.”

The letter said the average rental return for a one-bedroom apartment in the West End, Highgate Hill and South Brisbane areas should be a minimum of $480-$520 a week, while two-bedroom units should be renting for between $675 and $850 a week.

Ray White Qld chief executive Jason Andrew.

“If you are not achieving these rents (at a minimum) you should be asking why,” the letter says.

“We are finding that many landlords are not being provided with the information to make an informed decision for their rent increases in recent months, instead being advised to sign long-term leases with only $5-$20 per week increases in rent.

“$5-$20pw may be market rent, but what if it is not?”

The letter also claimed that “most tenants are agreeable to the rent increase as when they look at what is available in the market for rent, they understand the rest is fair and reasonable”.

Ray White West End sent a letter suggesting some landlords could increase their rent by up to 20 per cent before the end of the year. Photo: Google Maps

But rental advocates disagree. Penny Carr from Tenants Queensland said renters she had spoken to were only agreeing to pay more in rent for fear of becoming homeless.

“That is certainly not our experience,” she said.

“People are only agreeing to pay more because they have no choice – they either pay more or move out and try their luck somewhere else, but that is really challenging at the moment.”

CEO of Tenants Qld Penny Carr

Queensland is still in the grip of a housing crisis with a record low vacancy rate of 0.7 per cent, making moving an unrealistic option for many.

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