I'm reading that as a potential $40 gain for the year.
I'm not sure if you are being serious or not.
High tenant turnover can result in more $$$
- Thread starter Xenia IM
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I'm reading that as a potential $40 gain for the year.
I'm not sure if you are being serious or not.
so would I in reality.
Just gauging general opinions on this topic to see if investors may be able to see a benefit.
Looks like a definite NO for SS demographic which we predicted anyway.
I'm reading that as a potential $40 gain for the year.
I'm not sure if you are being serious or not.
It's an example to see if investors would see a benefit in a break even point.
forget the $40 - say it's even.
I get your view point regardless.
What's your POV? Do you see any benefit for investors in doing the above at break even point?
Only when there is a real non renewal period.
Ie tenant has decided to not renewal lease, or there is a break lease or it is a new property acquired that is under rented, or a tenant has an entire folder of breach notices and the landlord has instructed us to not renewal the lease because they have had enough..... etc....
I would not "generate" a vacancy by not renewing a lease for no good reason.
In reality, there are enough natural vacancies in a real estate office to keep us on our feet with re-leasing so we do not ever need to manufacture them just for the hell of it.
In-fact we get some breathing space when the office "vacant property" board is clean
Also, in the real world leases are renewed, not renewed only under landlord instructions.
Ie tenant has decided to not renewal lease, or there is a break lease or it is a new property acquired that is under rented, or a tenant has an entire folder of breach notices and the landlord has instructed us to not renewal the lease because they have had enough..... etc....
I would not "generate" a vacancy by not renewing a lease for no good reason.
In reality, there are enough natural vacancies in a real estate office to keep us on our feet with re-leasing so we do not ever need to manufacture them just for the hell of it.
In-fact we get some breathing space when the office "vacant property" board is clean
Also, in the real world leases are renewed, not renewed only under landlord instructions.
If you've got a property sitting on the market for 2 months because you're trying for a higher rent, you've also got to remember there's tenants that won't see the as at all or those that have seen it for weeks and think "what's wrong with the property?".
Achieving a higher rent isn't always the best option.
The best option is to have a tenant who's paying market rent, looks after the place and doesn't cause too many headaches.
Going to have to disagree too.
Achieving a higher rent isn't always the best option.
The best option is to have a tenant who's paying market rent, looks after the place and doesn't cause too many headaches.
Going to have to disagree too.
Yes that is an obvious objection by investors and it was considered in original proposal.
My original example was to take the risk down to zero vacancies to see what other objections came up.
In the absence of 2 month vacancies, Agent letting fees were then considered and most people thought it would not be worth having an increase even if the agent generated their fees via the increased rent.
All theoretical - I was interested more in opinions, at least of this particular demographic!
Now why would you even consider the cost of achieving a higher rent? The rent is higher, end of story - the owner wins
tenant pays more rent Achieving a higher rent is always preferable, but not always profitable.
Also, another way to put it, legally in Vic you're only allowed to do inspections in the last two weeks of the tenancy (unless the tenants agree). So really, you've got 2 weeks to hope for a much higher rent, depending on vacancy rates you could have a property sitting vacant for 3-4 weeks because you're trying to achieve a higher rent - therefore wiping out your profit margin.
If the market is good, then there's potential that it's worthwhile, but very much a case by case basis.
Also, another way to put it, legally in Vic you're only allowed to do inspections in the last two weeks of the tenancy (unless the tenants agree). So really, you've got 2 weeks to hope for a much higher rent, depending on vacancy rates you could have a property sitting vacant for 3-4 weeks because you're trying to achieve a higher rent - therefore wiping out your profit margin.
If the market is good, then there's potential that it's worthwhile, but very much a case by case basis.
disagree totally, unless the property is in a really high demand area, and I mean high demand, then chances of zero vacancy are very slim,
often good applicants will want to move in a certain date, and then extend a few days,
its harder to rent out a place when someone is living there, for the most parrt,
also most of my properties are in low to medium demand area, so on average, my properties are vacant anywhere beween 2-4 weeks every time they leave
And realistically it can't be zero. Most PMs will allow at least a week in between so that they can do outgoing inspection and arrange extra cleaning if necessary
Now why would you even consider the cost of achieving a higher rent? The rent is higher, end of story - the owner wins
Interesting isn't it.
Testing it on social media to see what types of responses there are there.
So far - one objection from a tenant view point - it will drive rents to unaffordable levels.
The question is not "reactive enough" for social media, it needs to be linked to terrorism or people poisoning their food or something that will stimulate more of a discussion for that market LOL Property and rents is too boring
We'll see what happens there but good to know what the "fear" is before using it for marketing.
We rent heaps of properties with ZERO vacancies or close to it.
Tenant's have been secured even within 12 hours of advertising.
2-4 weeks of advertising is normal but while someone is paying the rent in that time. This is used to our advantage if we are able to and there are no issues stopping us from doing this.
It takes a day to clean and arrange an exit inspection.
Vacant properties are a liability to a business.
There are lots of circumstances where zero vacancies are achieved, not always but we push for it where the circumstances are favourable.
I have to agree with the others, much prefer a long term tenant with incremental rent increases. In addition to all that's been said re potential vacancy periods, market downturns, new tenants being an unknown, all the fees involved in re-letting etc, I will add one more - frequent tenant turnover substantially increases the wear and tear on your property.
The extra rent would not come close to covering the collection of individually minor things that need fixing from frequent moving in and out.
The extra rent would not come close to covering the collection of individually minor things that need fixing from frequent moving in and out.
