Most rental owners would be very happy to get 6% as very few housing rentals get that level of return unless you include capital gains in your calculations. Net rental based on the current market value of most housing accommodation is way below 6%. A 200k increase which is not uncommon over the last 12 months therefore would need $12.00 rental increase minimum to cover that. Just add in council, insurance, agent, maintenance, annual cost of safety electrical inspections, strata levy increases... and a small income increase for landlords to cover increases in their cost of living accounts for a declining return. when we landlords increase the rent to cover these expenses by a coffee a day we are condemned as leaches. Wow, no wonder there is a lack of properties for rental in the Perth market.
