Escalating Owners Corporation fees, Council and Water rates, plus other charges such as ESM are now getting up around 25% of the annual rental. We have seen some as high as 30%.
The rule of thumb used to be more like 10%-15%.
Tenants look at the total occupancy cost, rent plus outgoings, with outgoings increasing at this rate, it is restricting rent growth.
Tenants look at the total occupancy cost, rent plus outgoings, with outgoings increasing at this rate, it is restricting rent growth.