Rent increase versus tenant retention for an apartment in Brisbane (1 bed)

Putting the numbers down before deciding: comparable asking rent appears close to A$4,137 on the same basis that my current tenant pays about A$3,624. This is a one-bedroom Brisbane apartment. The tenant pays reliably and takes good care of it.

The gap is meaningful, but so are vacancy, reletting and possible refurbishment costs. I am considering a modest increase rather than chasing the full asking figure. How would others frame a fair review, comply with the current local notice rules and preserve the relationship?

I would not treat A$4,137 as established market rent merely because that is the asking level. Compare genuinely similar apartments and allow for condition, location within the building and how long listings remain available.

The gap is A$513, roughly 14%. One vacancy period plus preparation and reletting could absorb quite a few months of that difference. A reliable tenant has measurable value, so a staged or below-market adjustment can be rational rather than generous.

That is where I am leaning. I do not expect the apartment to need major work, but there would still be cleaning, advertising and the risk of an empty period. The maintenance history is good and there are no unresolved tenant requests.

I need to confirm the timing under the present agreement and the applicable Queensland notice requirements before settling on an amount. I also plan to distinguish between advertised comparables and anything showing what similar units actually secured.

How long would you realistically tolerate vacancy before accepting less than A$4,137? That assumption matters more than the headline gap.

I would also ask whether the tenant has indicated any intention to stay. You need not negotiate against yourself, but an early, respectful conversation may reveal whether a modest rise is acceptable. Give the formal notice exactly as required; the friendly conversation should not be mistaken for the notice itself.

I disagree slightly with putting too much weight on turnover. Keeping rent materially behind the market year after year can create a harder conversation later. If the comparables genuinely support the higher figure, some adjustment is reasonable now.

That does not mean demanding the full A$4,137. Explain that the review reflects comparable apartments, acknowledge the tenant's reliability, and avoid implying that good behaviour entitles them to no increases indefinitely.

Before choosing a figure, make a simple retention calculation: expected vacancy, advertising or management expense, cleaning, minor works and the chance the replacement tenant negotiates below asking. Compare that total with the extra rent you expect to collect over the next tenancy period.

Also separate legitimate end-of-tenancy condition issues from routine refurbishment. If turnover occurs, document condition carefully and handle the deposit under the applicable arrangements rather than treating it as a general renovation budget.

The tone of the letter matters. Keep it short: effective date, new amount, required notice, and a neutral explanation that the rent was considered against comparable one-bedroom apartments. Then add one sentence saying you value the tenant's payment and care history.

I would verify the current Queensland rules immediately before serving anything, as timing and agreement type can affect what is permitted. Do not rely on an old template.

One further caveat: advertised properties at A$4,137 may be renovated, furnished or simply optimistic. Save the closest comparables and note their differences before contacting the tenant.

If the evidence still supports an increase, offer a clear figure rather than a vague invitation to bid. If the tenant raises a genuine affordability concern, you can then weigh a smaller increase against the known costs and uncertainty of replacing them.