Brisbane - where did all the tenants go?

[fullylucky]

I've noticed recently it's hard to get people to inspect property. where did all the tenants go?

is it because since interest rate is low all the tenants could get a home loan and bought their own house instead of rent?

more houses being built?

is it because less population since the international students stopped coming due to harder immigration policy?

rent and everyone more expensive so more tenants living with their parents??

What the heck is going on??

 

[EN710]

Have no idea about Brisbane rental market (though I hope it's not Logan you're talking about), is it slow time there? e.g. long weekend everyone going for holiday/ school holiday?

is it because less population since the international students stopped coming due to harder immigration policy?

Ummmm, what has changed? I don't believe this at all - international student is where university get their money.

 

[RPI]

Inspections at entry to mid level properties for sale are massive still, not sure why the rentals would be quiet.

 

[Scott No Mates]

School holidays are over this weekend, so things should start to return to normal.

 

[A Jeremy]

December and January are usually the busiest months of the year for inspections. If you're having trouble with one of your properties maybe take a look at the advertising and price.

 

[Salvatore1]

Not an isolated problem for Brisbane. Sydney market has been tuff for over 6 mths. Traditional when sales are hot rentals are slow and visa versa. Good tenants are now buying due to cheap interest rates, plus lots of investers buying as well putting more rental properties on the market, more for tenants to select from. 12 months ago I would state I would have a tenant within 2 weeks but now only 3-5 families will look at the property and I have to work hard to ensure one of them take the property. If they dont then sits there for up to 1-2 mths. All current for lease properties have to be very well presented and well priced at the moment due to more to choice from. I listed a property with a pool on Thursday and with in two days I had 5 families through and another 2 through today. Phone and emails have now stopped coming in. Luck I received an application yesterday avo. All you can do in this market is ensure all okay with the property before showing and be patient. Dont just do open home show when applicant is available to see.

 

[vbplease]

I think you're correct regarding the points you've mentioned and others;

- very low interest rates encouraging renters to buy.
- new supply of housing estates. Some look like great value if you're prepared to live as far out as Springfield.
- oversupply of new units close to the cbd.
- in general, folks disposable income isn't as high regarding salary/cost of living so they're more savy trying to find cheaper rent.
- I've also noticed the number of students/single professionals looking to house share close to cbd is a fraction of what it used to be...

The past few months I was badly burnt having to cover 3 vacant properties, for the above reasons and because it's out of peak rental time i.e. June January

 

[Tyla]

I know your feeling as I was in the same situation up until last week and had to reduce the rent . Must be low interest rate. Things should pick up in a few months. All the best.

 

[wylie]

I know your feeling as I was in the same situation up until last week and had to reduce the rent . Must be low interest rate. Things should pick up in a few months. All the best.

What suburb and what was the asking rent, and how much did you drop it by (if you are happy to share)?

I'm looking at two 12 month leases ending in January and both tenants want to stay on. I do want to increase the rent to keep up but both tenants know we will be likely to be lifting the houses and they are both happy to go month to month until they have to leave. I don't want to raise the rent too much because if they leave, we will be hard pressed to find a tenant willing to move in for a short term.

I'm tempted to leave the rents at the rate they are now, but I believe they have fallen behind, and it is likely we will be twelve months before we have to ask them to leave anyway. I will watch the market in the lead up to January/February and see if things are still flat then.

 

[Salvatore1]

Wylie, Why tempt faith and raise the rent? If you increase it by $20 per week and it is vacant for 2-3 weeks you have lost the increase over 12 months you were hoping to gain? Leave the rent alone. Check the internet sites like realestate.com.au and domain.com.au and check out what similar properties to your property in the local area are asking for. This will give you an indication of rental prices.

 

[redwing]

SQM have Brisbane at around 2.3% Vacancy Rate and 3% is supposed to be 'balanced'

 

[wylie]

Wylie, Why tempt faith and raise the rent? If you increase it by $20 per week and it is vacant for 2-3 weeks you have lost the increase over 12 months you were hoping to gain? Leave the rent alone. Check the internet sites like realestate.com.au and domain.com.au and check out what similar properties to your property in the local area are asking for. This will give you an indication of rental prices.

I agree. But I believe I'm possibly $40 lower than I could be on both of them due to long term tenants. Each annual lease, instead of "tempting fate" and asking $20 increase, I've asked $10 (or whatever was appropriate in the climate at the time - rather than lose them by being greedy).

That is something I'm comfortable with, knowing if I lose a tenant, I lose a week or two in rent, but as the years go by, this is where the rent falls behind.

I don't want to lose either of these tenants, and I agree with your point, but this could be another 12 months and I will at least ask $10 per week. I won't shoot myself in the foot .

The problem with looking at re.com is that houses for $500 look just as good as houses for $600. It is not easy just using photos. You would know that photos can be very misleading, leaving out bad bits, using fisheye lenses, making things look much better than real life. But I appreciate your comment and will tread carefully. The last thing I want is to lose them right now.

 

[Tyla]

What suburb and what was the asking rent, and how much did you drop it by (if you are happy to share)?
.

It was near Chermside. Originally advertised for 420, as there was no interest I had to reduce it to 400. Even then the interest wasn't very big. Luckily we managed to sign up. I guess people are more interested in buying currently.

 

[miss green eyes]

it's not just brisbane, it's the same in Sydney.
There is a glut of rentals because alot of people have bought IPs in the last year or so.
If it gets too difficult to rent out my IP I may consider upgrading it - installing A/C, dishwasher etc.
I dread the maintenance on A/Cs though. Each callout will just cost so much.

 

[wylie]

If it gets too difficult to rent out my IP I may consider upgrading it - installing A/C, dishwasher etc.
I dread the maintenance on A/Cs though. Each callout will just cost so much.

We have gradually upgraded each IP we look after with dishwashers, air-con, decks etc.

I don't think we have had any maintenance callouts on air-con though (touch wood).

 

[miss green eyes]

Can't add decks in an apartment
A/C depends on luck and age.
I think Callouts can be a couple hundred each time just for labour. I suppose it's worse in an IP where a tenant won't look after the filters.

 

[wylie]

We add a clause in our leases that should a call out be required that turns out to have been the result of the filters not being cleaned regularly, then the fee will be at the cost of the tenant.

Whether or not that means they actually clean the filters, I have no idea, but we've never had any issues, nor any callouts so far.

 

[miss green eyes]

We add a clause in our leases that should a call out be required that turns out to have been the result of the filters not being cleaned regularly, then the fee will be at the cost of the tenant.

Whether or not that means they actually clean the filters, I have no idea, but we've never had any issues, nor any callouts so far.

Lucky you!
I have never had them installed in an IP. Yet. Might have to bite the bullet some day if I can't rent out my IP otherwise.
I had them in my parents' PPOR growing up, and I remember an entire childhood of callouts.
The less moving parts the better.
I am searching for a good portable A/C unit but I don't think it's been invented yet. The portable ones take up too much space and are noisy, so tenants won't like them.

 

[wylie]

I had them in my parents' PPOR growing up, and I remember an entire childhood of callouts.

I am searching for a good portable A/C unit but I don't think it's been invented yet. The portable ones take up too much space and are noisy, so tenants won't like them.

I think you must move on from your memories from your childhood . Technology has changed so much.

I'm not sure if you can get portable units that are actually air-con and not evaporative units, but air-con is so cheap these days to install that I reckon you'd probably pay nearly as much for a portable one as a split.

 

[Andrew_A]

The rental market in Brisbane is just fine, generally speaking, plenty of people who were renting have or are choosing to buy, also you have holidays, seasonal factors but no excuse for extended vacancies.