How far below market would you keep a reliable Sydney studio tenant?

I

iris_reads

Landlord
Founding Member
The surprising part was the size of the advertised difference. The studio brings in about A$4,292, while similar Sydney listings are near A$5,098, although I realise asking prices do not show what tenants ultimately agree to pay.

Because the tenant is dependable and takes care of the place, closing that gap immediately feels shortsighted. One vacant month, followed by cleaning, reletting and any deferred work, could absorb much of the additional rent. I am considering a smaller rise now, followed by another review only if the comparisons and tenancy rules support it.

Would that be a reasonable way to explain the decision to the tenant? I will first check the maintenance record and confirm the NSW requirements for notice, timing and how often rent can be changed.
 
I wouldn’t treat A$5,098 as the target until you know the listings are genuinely comparable and actually being taken at that figure. Asking rent can overstate the achievable rent.

Estimate the cost of even a short vacancy, advertising, cleaning or repairs, then compare that with the extra income from different increases. Also check when the rent was last changed and the tenancy arrangement, because those details affect the NSW process.
 
A modest increase is not automatically fair just because it is below the advertised market. Maintenance history matters too: if anything important is outstanding, deal with that before or alongside the review.

I’d show the tenant a small set of close studio comparisons, explain that you value the reliable tenancy, and give the required written notice rather than making it an informal negotiation. Before serving anything, confirm the current NSW rules on timing and frequency. If turnover does happen, follow the applicable deposit-handling process rather than treating the deposit as a general refurbishment fund.
 
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