As the supply for rentals is relatively low in the region, agents and landlords have been making small raises in rent to account for the demand.

Principal of The Professionals Mudgee, Helen Woods said one of the biggest demands was for medium sized properties.

“Luxury three and four-bedroom houses, whether they are furnished or unfurnished, are the most popular and high demanding rental markets,” she said.

Almost every real estate agent agreed supply and demand has seen minor rental increases on some properties with most not increasing by any more than $5-$10.

However, some rental prices have been increased by almost 20 per cent and upwards of $60 a week.

The estate agents all said they regularly complete market comparisons and can negotiate with landlords and tenants on larger rental increases.

Property Manager of Peter Druitt & Co Mudgee Kerri Metcalf said it was important to keep up to date with what was happening in the market.

“We must represent the landlord and keep them profitable in line with the market,” she said.

Property Manager of Raine and Horne Mudgee Alexandra Huish said they were often looking for tenants who want to stay in Mudgee for longer than a three or six-month lease.

“We see local tenants as a long-term investment,” she said.

The rent increases for some properties in Mudgee are going to place an added cost to residents after the announcement of an increase by $893 to energy bills by 2013.

By law agents must give at least 60 days notice of a rental increase and should the rise be seen as excessive, tenants can take their claim to the NSW Consumer, Trader and Tenancy Tribunal.