Q and A: My real estate agent is trying to increase the rent. Can they do this?

This all depends on your agreement (aka. your lease). If you have a fixed term agreement (current lease) the rent cannot be increased unless a 'special term' in your agreement states. This special term will include the amount of the increase or how the increase is to be worked out. In this case your lessor/agent/owner must give you notice in writing before increasing the rent. Usually around one month - depending on the laws in your state.

Although, if you do not have a current lease you will most likely be on a periodic agreement. In this situation the rent can be increased at anytime. The lessor/agent/owner must give notice in writing before increasing the rent. Usually around 2 months - depending on the laws in your state.

If your lease expires and is not renewed your rent can be increased at anytime. Moral of the story - make sure your lease is current!

If you think your rent increase is excessive you should contact your State Authority for advice.

Image Credit: Veender

Q and A: The real estate agent has advised me that I am not obiding by the body corporate by-laws. What are by-laws?

Body Corporate By-laws are rules in relation to the presentation of the property, noise, parking, visitors, keeping pets etc. The by-laws form apart of your Tenancy Agreement.

The owner/lessor/real estate agent must provide you with a copy of the by-laws when you sign the Tenancy Agreement at the beginning of the tenancy.

If you moved into an existing share house and where not living at the property at the beginning of the current lease talk to your housemate or contact your real estate agent to get a copy.

RP Data Gives Thumbs up to Investing in Student Accommodation near Universities

Posted in late November 2009, RP Data released an interesting article outlining the pros and cons of investing in student housing. Some of the important points covered include:

• Investors can benefit from good yields and steady demand.
  

• Unemployment rises in tough economic times. Student housing is a rental sector where it is impossible for the tenant to loose their job and demand usually remains steady.

• International students enrollments increased an average of 20.7% from last year. Some universities are reporting an increase of undergraduate acceptances by 13% this year. International education is Australia's third largest export.
  

• Statistics from Brisbane alone show student accommodation consists of: 47% share accommodation, 18% living at home, 15% living on campus, 13% living with friends and relatives and 7% purchasing their own property.

• Share accommodation provides a great alternative at a more affordable price range - this is reflected in the market share.
  

• No matter the location, yields for student accommodation are almost always higher to renting to non-students.
  

• Conflicts can arise having several people living under the one roof. Many of these hassles can be solved by hiring a good property manager.
  

• Location is the key to student housing. It is vital for the property to be close to the university or near public transport. As 10% of the market own cars.
  

• Marketing costs are higher compared to normal single residence accommodations.
  

At only $45, Ziggie offers an affordable advertising medium for marketing student and share accommodation.

Read article in full click here: Getting a Top Mark - investing Near Universities
Source: RPData

Image Credit: Jeff Werner

Considering Renting Your Investment Property Out By the Room?

This article by Chris Rolls from Rental Express provides great advice for renting your investment property out by the room.

Important factors to consider include:

• Security modifications
• furnishings
• electricity and water
• cleaning and maintenance
• wear and tear
• vacancy
• associated costs
  

Recommendations to make your investment work:

• proximity to public transport, CBD and university
• multiple living areas in relation to number of bedrooms
• installing hard wearing fixtures and fittings to reduce maintenance costs
• keep the end in mind.
  

Read article in full click here: Renting By the Room
Source: Your Investment Property