27 January 2016
14 January 2016
Out of control outgoings are killing rent growth in unit developments
OUTGOINGS AS A PERCENTAGE OF ANNUAL RENTAL HAVE DOUBLED IN PAST 5 YEARS OR SO!
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%.
Steven Lawson
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.
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