Hi,
Perhaps you may wish to investigate whether you are charging enough rent.
If the Tenants are hurting after the rent negotiations, then you know you've extracted the maximum possible rent.
If however, multiple Tenants are lining up to rent again, perhaps you aren't extracting what you could out of the box, which in turn hampers all of your surrounding fellow Landlords.
That's great, nice to know you don't have to worry about getting tenants.
Has it got something unique? Great reno, great area, great owner?
Just curious.
I would say all of the above. It's not perfect though.
* Good security
* Great location
* Good room sizes
* Nice reno - has welcoming, homely feel
* Massive yard, relaxing country feel
* Allow certain pets
I have had local PM's value it a couple of times and have charged about $20 a week more than what they have quoted me. I must agree though, I thought the same thing.
What is your experience with renting your large triplex block? Does it rent easily? Do you get more or less rent than surrounding, smaller properties?
We've had a good run with it, but that is more to do with the integrity of the Tenant than anything else.
She was a single mother with a job, two kids and a drop-kick hanger on. Suffice to say we had reservations....but her competition was a single mother on welfare with 4 kids and a violent ex-husband....so the best of a very bad bunch.
I was supremely reluctant to do business with people like this, but she's matured and got better over time.
They've been there 6 years now, and I recently signed her up for a further 5 years, with in built 6% p.a. rent increases. She pays her rent exactly on time, but it's only $ 300 p.w., so what do you reckon - 3x1 B/T house on a huge triplex block for $ 300 p.w ??
I reckon it's a screaming bargain for her, but we only paid 96K for it 12 years ago so dunno.
It's drossville out there, I don't know what the surrounding houses go for, cos I never research houses anymore. I'm completey clueless market wise what the houses are doing.
Yes it's a screaming bargain. The tenants know it too. One even said to me they couldn't afford to buy the lifestyle.
Rent - $300x52=$15,600
or
Rent - $330x52=$17,160 ( I get $330 for mine)
If they were to purchase the property, (value $700,000) 7.5% interest
They would pay $27,615 in stamp duty
If they borrowed the amount of the purchase price their repayments would be $62076 per year.
+ rates, repairs.
I bought my property 12 years ago too (but paid a lot more than what you paid!) I'm glad I bought then, and not now though.
We must be doing something right.
I've never had problems getting resi tenants, many I know never had problems getting resi tenants. This over a period of >20yrs.
So maybe it has nothing to do with you (me or them) at all.
It's a big yard to look after. The lawn takes two hours to mow. The last time I paid someone to mow it, it cost me $150 about 7 years ago, and the lawn mower guy asked me to not call him again. Seven years ago I had to give incentives such as providing a mower to get people interested. I don't anymore. Maybe the smaller block sizes you get now is a factor. People moving to capital cities from rural area's don't like to be boxed in.
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I was just a bit surprised though that all 3 of the previous tenants have asked to move back.
We had ride on mowers when we were kids...never a problem getting us, or visiting friends to mow the lawn, even more fun when the old man fixed up another one he found at the tip, as we could now have races!
