I have a Ip in wagga wagga,in Glenfield sub,its 3 bed 2bath,2garage.renral was $390.00 wk,Last tenant vacated 3 weeks ago.According to the agent there were few inspection but no application.Last week I dropped the rent to $380.00.But still no tenant.
Its a brand new house,i bought it last year in Jan.I called agent yesterday,as the house is advertised at their wed and she mentioned it is advertised in domain,realestate and on local papers on Sat.
I am not sure whats the go,but feel that its a country town,people will rent may be when they move in Jan etc. should have lease of one year ending in Jan,each year.
I dont know what to do, whether to reduce the rent or wait bit longer.its almost 4 weeeks.
Any suggestion Please it will be very much appreciated.
Mike.xdrewParticipant@xdrewJoin Date: 2010Post Count: 479
This is the reason I keep saying in country destinations that the tenant is gold bars.
The frequency of tenancies remains the critical issue with country properties. If you are lucky and the town is booming then the swap rate between tenancies is acceptable … but .. outside of that .. you really are looking for someone who will want your property at parity level (at or close to the value you list at). However … you are looking for a tenant in a limited patch of tenants. Most changeovers and swapovers are best kept to end of year / start of year events. Once the year starts .. .. few and far between. The good part is once they are in there .. they stay for ages.
Check the price vs similar options in the area. Most tenants grab the local rental list .. and make comparisons. If your property isnt moving, it may be overpriced .. or uncompetitive in the rental market. Check this against local agents rental lists .. and then make your own decision. Also .. dont be scared to approach other agents if the process takes too long. Often .. agents with large rental folios have more swappage happening between tenancies .. simply because they get more people in through the door.
The final thing … dont let yourself get caught in extended vacancies … you should have 3% minimum of the property value in the bank reserved for such occasions. The biggest mistake is to be spending up to the wire on properties and then getting caught out when repairs .. maintenance or vacancies hit. Thats when the penalties start rolling in and it all goes downhill.luke86Participant@luke86Join Date: 2010Post Count: 470
Yep, I agree with xdrew- if the property isn't renting then it is probably over priced. Have a look at realestate.com.au to check out what other 4 bedroom homes in the area are renting for to make sure your asking rent is right.
And also try ringing an agent and giving them the address, what the asking rent is, a description of the property and see what they think. a different agent might have a prospective tenant on their books so you might be able to sign up with them straight away.
Thanks guys for your comments.
I will try to get other agents view.Can you sign with another agent straight away as in my agents aggrement says i have to give them 2 months notice when i want to leave them.In between can i engage another agent.PLS your views.
mike.Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
It can take a little longer to find tenants in regional areas as compared to larger cities.
I agree with what the guys above have said – suss out similar properties, see how much they’re renting for – chances are, yours may be over priced.
Also, I believe the Wagga rental market spikes towards the start of the new year. It might be an idea to time your next lease so that it expires around this time – you might be able to attract a higher rent due to the higher demand.
Yes ,I have looked at other rental property in that area its around $360 to $380 wk,perhaps I will have to drop the rent to $370.
Thanks Guys for your views.It is indeed very encouraging to see that you are out there to help people with your advice.
Once again thank you.
MikeJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
No worries at all.
I was in the same predicament not that long ago with an IP in Wagga.
Fingers crossed you find a good tenant – it’s a decent area, so hopefully you’ll have no dramas.
JamietehapaiParticipant@tehapaiJoin Date: 2006Post Count: 2
Option 1 – ask what other properties are rented at to locals
Option 2 – Reduce rental slightly until market picks up again
Option 3 – what is your existing mortgage, work that out, then do a lease option (rent to buy) to see if you can help someone come in and own your home, this could end up being a better option as will be helping someone own their first home, plus get cashflow, plus potential of home being sold down the track, and if it doesn’t, just put it back on the market and do it againthecrestParticipant@thecrestJoin Date: 2004Post Count: 992
Once you have the rent level set right, you should be competitive at least.
Offer one week's free rent, becomes an incentive, a point of difference, better to drop a week and get a tenant than lose another week and still have no tenant. Always subject to successful application process as usual though.
If your agency agreement is exclusive, all you can do is place private ads to see who comes out of the woodwork, and then route their application through the REA for professional vetting and ongoing management as per your agreement.
Don't accept applicants who avoid agents for obvious reasons.
Make sure there are plenty of pics on the net ad.
Stipulate that the REA must advise you of every enquiry as it happens, so you can count them.
Consider allowing pets with damage restitution clauses in the lease of course.
Is the house competitive in the area of heating n cooling e.g. evaporative cooling system or r/c aircon ?
If the property is not well heated or cooled, I'd suggest you fix it, long term benefits and extra depreciation.
Ensure it's priced with properties which have similar features and extras.