Do rentals go 'stale'?

[fernfurn]

Have had my townhouse on the rental market for 3 weeks tomorrow and only 2applicants, both not suitable. I know if I see a house for sale sit on the market for some time I wonder whats wrong with it, does the same happen to rentals, I know it can take 3-9mths to find the house you want to buy so people are in the same market for much longer, whereas I would think renters find something in the first 2-3 weeks then are out of the market and a new set come in, therefore wouldnt realise the rental had been on the market for so long. Is this a correct assumption.
The website has had over 900hits would that be normal? Is 3 weeks too long, should I be changing my criteria, dropping the rent? I am not in a hurry, just didnt want the property to get a bad taste

 

[PrimeCommercial]

Before we built our place we went thru 4 rental properties in 3 years (3 owners moved back in after 6-9 months, last one we moved into our new place)
Every time we looked for a new property it took about 3-5weeks between starting to look for a place and moving in.
So to answer your question, No, I dont think that rental properties go 'stale' like properties for sale.
When we were looking for a place to buy we looked for a solid 4-6 months.

 

[Player]

Hi Celica,

three weeks is a long time in today's tight rental market, especially if your IP is in a metro area. Only two applicants from 900 hits begs the questions: Is the rent too high? Are there too many of your type of IP in the area? Are the other rentals in the area more unique (bigger, better quality, etc)? What does the property manager have to say?

I have never in any economic climate had an IP vacant for more than a week. It is not unreasonable for a rental to go stale......but I wouldn't think that to be the case after three weeks.

Proactive measures may include dropping the rent slightly or at least making it a non-round number ($248 is psychologically more appealing to more people than $ 250). Or rather than reduce the rent offer one week free rent. That way you starting offa higher base when comes time to increase it or re-negotiate a new lease term. I'd get onto the leasing agent for their opinion.

More info on the location and price would enable more specific opinion to be provided.

 

[YLC]

Have had my townhouse on the rental market for 3 weeks tomorrow and only 2applicants, both not suitable. I know if I see a house for sale sit on the market for some time I wonder whats wrong with it, does the same happen to rentals, I know it can take 3-9mths to find the house you want to buy so people are in the same market for much longer, whereas I would think renters find something in the first 2-3 weeks then are out of the market and a new set come in, therefore wouldnt realise the rental had been on the market for so long. Is this a correct assumption.
The website has had over 900hits would that be normal? Is 3 weeks too long, should I be changing my criteria, dropping the rent? I am not in a hurry, just didnt want the property to get a bad taste

Unless it's in outer suburbs where there are a lot of rental properties in the area, 3 weeks is a bit long in this tight market. But then it could be other reasons. You need to find out why from your PM if you are using one.

 

[sash]

Yes three weeks is a long time....how much is the rent?

The outer suburb vacancy in Sydney is now virtually non existent. Places which used to rent for 165-170pw are now on the market for 230-250pw.

In this market if the property is appropriately priced, is in tidy condition, and you are not too picky about tenants (within reason of course....people sometimes want certain ethnic groups, etc.) it should go within the week. Such is the shortage out there. Sometime investors get too emotionally involved.

Unless it's in outer suburbs where there are a lot of rental properties in the area, 3 weeks is a bit long in this tight market. But then it could be other reasons. You need to find out why from your PM if you are using one.

 

[Soren Lorenson]

took 6 week for us in inner melbourne, i think we might have been a little bit overpriced, seems renters will pay alot for brandnew kitchen and flooring in a townhouse with courtyard, vs an okay house with land.

it wasn't helped by agent only having opens once a week or fortnight. check your agent and see how often they open?

in melbourne rentals are tight but not as tight as the media would have you believe,

finally yes i think if your rental is right at the end of the list for a particular area when searching online it becomes a bit stale.

 

[GoAnna!]

Could you give us a price, suburb and brief description?

Have you done a search of www.realestate.com.au

I think 900 is a lot of hits without it being let. Don't think I have ever gone that high on any property ever. Yes, I think they can go stale to some extent.

 

[Gools]

I second the suggestion that you should find out from your PM why it hasn't been let yet. Maybe it's price? Maybe it's something that should be quickly improved? You shouldn't be asking us to guess, ask the person that knows why.

 

[fernfurn]

As stated in the beginning thread, it is a brand new (1yo) 4 br townhouse 8ks from the city in a very desirable suburb but crappy position (main road). I have asked each open day why she thought nothing happening. She doesnt seem to know. The rent is $400 pw and I think and she said, is not too dear for what it is. I have knocked back 2 unsuitable (to me) applicants. The other day she said there had been 4 groups (they call them) at the open, everyone loved it and were going to fill out the paperwork. Havent heard a word. It is open twice a week. I had one couple want to rent it for 3 years (too long dont know what I'm doing then) and one lady with a dog. I have relented and said would t ake the dog but havent heard if she actually applied.

 

[jaycee]

Have another conversation with the PM, along the lines of: why isn;t this working & what should we do ?

The PM must have SOME ideas to help you, otherwise, is it worth continuing with them as your agent ?

 

[YLC]

As stated in the beginning thread, it is a brand new (1yo) 4 br townhouse 8ks from the city in a very desirable suburb but crappy position (main road). I have asked each open day why she thought nothing happening. She doesnt seem to know. The rent is $400 pw and I think and she said, is not too dear for what it is. I have knocked back 2 unsuitable (to me) applicants. The other day she said there had been 4 groups (they call them) at the open, everyone loved it and were going to fill out the paperwork. Havent heard a word. It is open twice a week. I had one couple want to rent it for 3 years (too long dont know what I'm doing then) and one lady with a dog. I have relented and said would t ake the dog but havent heard if she actually applied.

Not very helpful if the PM can't tell you why. Because it's on the main road, people expect the rent to be a bit cheaper than the house next street. If it's close to school/uni you may still get tenants at that rent.

 

[Player]

Celica,

how " crappy " is the main road location you allude to. Is it on a major highway with trucks thundering past all day? Is it the very front town house? Could these be influencing prospective tenants due to noise? If this is an issue maybe look at sound proofing, at least double glazing the windows that face the main road.

If you've got the rent at $ 400 drop it to $397 or $393. Round numbers especially at a hundred dollar increment, may also put people off. Offer one week free rent.

If this is near new and 8 km from a city (? metro CBD) and it is now over three weeks on the market.....it is taking way too long to let.

As I've mentioned earlier and others have too, get more info out of the PM.

What are other comparable town houses on main roads in that suburb going for?

Could you provide the link for the internet ad and maybe we could aal comment further?

In this rental climate, if I had anything vacant and it took three weeks plus to let, I would be #%&^$# (annoyed).

 

[Bandita]

Hi Celica,

What suburb in Melbourne?

Cheers,
Jen

 

[fernfurn]

Its in Essendon and the main road isnt a problem noiseways, just looks worse than it is. I am going to ring the agent this am and drop the rent. I wonder if $10 drop would be OK or should I try $20 straight off. I am wondering if I should advertise in the local paper as well. I said no initially as I thought those that could afford $400 would have the net and only look there. I am wondering if I should redo the photos (now an empty house) and also get them to take the precise location off the location map as I wonder if thats putting people off even coming out. New photos might give it a new lease of life. I have signed a 60 day agreement with this lot and havent been impressed so far. As I said with over 900 hits we are only getting 3-4 groups through each open day

 

[Player]

Hi Celica

I also would have thought that whoever pays 400 p/wk rent would be net-savvy and reliant on technology. Wouldn't hurt to put it in the local rag. That wouldn't cost that much in the scheme of things so far.

Your idea about photos is sound. Perhaps only have a photo of the front of the house and angle shots of the new kitchen and bathroom only. Avoid living area shots that show a bare vacant house.

I would drop the rent by approx 10-15 dollars (try and get it off round numbers). This will cost you in the order of say 500-750 dollars in the year, compared to now three weeks empty (at current price) costing $ 1200 so far. Perhaps throw in a weeks free rent also at least that keeps the rent at a higher level for future negotiation rather than dropping it by 20-30 dollars per week taking to a lower rent base from which to negotitat or re-let.

What are the other comparable rents around there (check online)?

Have you attended any of the opens? You PM could be the cause for such a delay. At property for sale opens that I attend, some of the R/E agents are inept from the perspective of working for the vendor, or actually knowing the house or suburb.

A lot of ideas here. Just wanting to give you as many angles as possible to approach this problem (delay in securing a tenant).

 

[fernfurn]

Have had another application today (first was from family with 2 and 3 yo children ) and now 3 girls aged 23ish. My first instincts say no, (boyfriends over, etc.) but what do you all think? Where are all the dinks?

 

[GoAnna!]

I guess 4 bedrooms will attract either families or share household. Most DINKS wouldn't require 4 bedrooms.

It's a trap to have an ideal tenant in your mind. And in real life they might not be so ideal

 

[Player]

Have had another application today (first was from family with 2 and 3 yo children ) and now 3 girls aged 23ish. My first instincts say no, (boyfriends over, etc.) but what do you all think? Where are all the dinks?

If their background checks, refs, income, etc all stack up, I would go with the family. Three sinlges are likely to have sleep-over friends, and probably come and go and even sub-let without your knowledge.