All Topics / Help Needed! / FIrst IP & struggling to get tenant :(

Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of bacchubacchu
    Participant
    @bacchu
    Join Date: 2004
    Post Count: 62

    i bought this off the plan apartment on the 14th floor..the projected rent is $340/wk….due to competition of other apartments i haven’t been able to find any tenants prepared to pay $340 or $330 for that matter….

    Did i err on buying an apartment high up ??….i paid more to go high up (better views) and should expect higher rent than the ones below me but the ones below me are all rented out and tenants want the rent decreased to the same levels….its been 4 weeks that the property is vacant….

    don’t know what to do ….any advice much appreciated

    Profile photo of mathewc73mathewc73
    Participant
    @mathewc73
    Join Date: 2005
    Post Count: 241

    Hi,
    Is the 14th floor the top floor? If not can you find out how much rent is asked for on the 15th floor or even other units on the 14th floor?

    Also if all has been released at once, the cheapest relative +-2 floors from yours will go first.

    You can wait until supply dries up (but still may not get interest) or lower your price.

    My partner and I moved into a unit on the 33rd floor of a new high rise in Melb. Ask was $450 a week, however 1 level down ask was $400 and so we offered $400 as there was plenty to chose from and so the landlord had to meet the market.

    Mat

    Profile photo of TurtleTurtle
    Member
    @turtle
    Join Date: 2003
    Post Count: 25

    follow Mats advice

    it is far better to lower your price by 10-20 bucks (or more) and getting someone in cheaply than having you unit sit idle for long periods of time…if you get a good long term tennant you can always raise rents down the track.

    you could also consider adding other incentives to the mix as suggested in some other posts and Steves books

    good luck with it
    Grant[blink]

    Profile photo of bacchubacchu
    Participant
    @bacchu
    Join Date: 2004
    Post Count: 62

    the building is around 28 floors….some of the flats advertised on the 8th floor are around $340-$380 ….but don’t know how much it is going actually for….

    Profile photo of bacchubacchu
    Participant
    @bacchu
    Join Date: 2004
    Post Count: 62

    Also my agent was the one who were marketing the property and had around 10 to rent out..do you think it was a bad decision to go with them considering they had many other alike properties to rent and that they would not stress on mine as they would have had it been the ONLY property to rent out for them ??

    Profile photo of mathewc73mathewc73
    Participant
    @mathewc73
    Join Date: 2005
    Post Count: 241

    Hi,
    If people are shopping around they will easily find all the properties for rent on domain.com.au or realestate.com.au or ring the number on the building or walk down real estate alley in your area.

    So what incentive does the potential lessee have to lease yours over the others? Tutle has the right answer with Steves book. All those off the plan apartments look the same brand new. Do they have dishwashers? Dryers? etc. If not maybe add these to yours and you have just differentiated yourself.

    What incentive does the agent have to lease yours first over the others? Can you give the agent an incentive or do you really have to find another agent?

    Good luck,
    Mat

    Profile photo of depreciatordepreciator
    Member
    @depreciator
    Join Date: 2003
    Post Count: 541

    Don’t speculate about whether you erred on purchase. All off-the-plan buys are a punt.
    A client of ours a year or so ago had the same problem. They bunged in a plasma TV (or some sort of wall hung TV). So there were 10 apartments to rent, but only had a flash TV. It differentiated their apartment.
    Yes, they had to invest some more money (albeit on a depreciable item bought on terms), but at least they got the place rented out and got some money coming in.
    Maybe you could inspect some of the other apartments on offer and see what you can do to yours to make it different?
    Scott

    Tax Depreciation Schedules
    Australia wide service
    1300 660033
    [email protected]
    http://www.depreciator.com.au

    Profile photo of prcbryce1prcbryce1
    Member
    @prcbryce1
    Join Date: 2006
    Post Count: 6

    Hi Bacchu,

    why don’t you approach a travel agent or two and try and put together a Commonwealth games package or two. It will be short term, but it might get you out a spot for a while. This will then allow you time to think about your next move.
    If it’s furnished, this would help your depreciations, but if it’s not, you might want to consider buying and then renting it out.

    Good luck.

    Prcbryce1

    Profile photo of ecattecatt
    Member
    @ecatt
    Join Date: 2005
    Post Count: 40

    I love the plasma TV idea… it would be really eye catching when you walk into the apartment plus it has depreciation advantages!! Nice work.

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