How Dodgy is this!

G

goswa

You would not believe this....

I have a 4 b/r home with a rumpus room/teenage retreat in Perth. I have contacted the "agent" to have the rent increased. Currently we have the house rented out for $215.00 per week.
My "agent" now tells us that she is not sure that we would be able to get anymore than $10.00 extra per week for it!
$225.00 for a house that is in good condition, and all repairs such as guttering etc done when requested.
Okay granted the tenant we have is a single female (with a lot of room) she is good, she pays the rent, keeps the house & yard clean etc.
I live interstate from the IP & yes this is my first IP. I just think this is downright dodgy, I have looked on Re.com and have not found anything around the amount that I am currently getting in the area. The rent has been raised once in 2 years by $5 per week.

I have emailed the agent and told them I don't agree and they have yet to get back to me.

What is the most the rental can be increased by assuming the tenant chooses to stay on and pay the increase?
 
I guess some agents are a bit cautious...my property is renting about 70bucks below what it should be, but it will be hard to re-rent due to the area...just be happy you have a great tenant and no issues..:)
 
I'd suggest that if you're happy with the tenant and have had no problems that you advise the agent you wish to increase it to say $290 p/w which falls into the price range you have quoted but maybe advise the current tenant that you would accept $275 p/w if she stayed on.
At the same time or prior have 3-4 agents take a look at the place and have them give you an estimate. This will assist you twofold. Firstly you'll have a decent idea from the other agents what the real income should be and secondly the existing tenant will know you're serious about any increase/discount you offer her.

If on the other hand vacancy rates are high in the area I'd probably tread carefully. For every 4 weeks the property is untenanted whilst you haggle you're losing around $20 p/w on what you end up getting over the next 12 months.
 
$ 215 per week for a 4 bedroom house.

That's $ 7.68 per room per night or a blistering $ 3.84 per room per night twin share to bring it back to an equivalent hotel rate.

I don't know about you, but an advertised $ 3.84 for a room at night is right up there. I agree with the PM, you wouldn't want to push it much higher. :rolleyes:

Agreed goswa....it's dodgy.

Why do people do business with parties who have no money ??
 
Dazzling, we all know how you feel about residential tenants and you are entitled to your opinion, but do you think your reply, dripping in sarcasm, is going to help someone NEW who has come onto this forum to try to get some advice.

Do you think he feels welcome here with a smart answer like that??

Perhaps he cannot afford to go straight into a commercial property, perhaps he has no desire to do so, but he has asked a fair question, and surely he deserves a considered answer, and not another rehash of how you feel about residential tenants and landlords.

Why not give him a suggestion he can work with. After all, you were a newbie once and had just bought your first residential IP and after reading of the horror stories you lived through with your residential properties (which you still own) I believe you would have loved to have been able to ask your questions on a forum like this.

Just give the guy a chance.

If you can't give him some helpful advice, why bother with the put down, sarcastic answer.

And to goswa..... Bradsdad is on the money. Good luck. Once you get the rent up to market rate you are on your way.
 
You can barely rent any house in Perth for under $300.00. Even if you did advertise your property for $300.00 you'd have good tenants lining up!
 
TheBacon said:
Ha! I'm enjoying you posts more and more!
Click to expand...

That's too bad TB, this is the last one you're ever gonna read from me....

You must be in the minority. The vast majority here don't....harsh numbers aren't popular - in whichever form they are presented.

I only ever look at the detailed numbers....the rest to me is just windy fluff and irrelevance in this real estate game. Others here disagree with me on this point. Apparently feelings and emotions come into it, rather than critical analysis of detailed crucial numbers.

Sugar coating seems to be the popular form nowadays. Go the ra ra option.

I don't sugarcoat, never have - never will. Good RE numbers never need it.


Adios forum. Have a huge '08. :)


GeoffW - scrub me off the list can ya matey.
 
Dazzling, it seems you are taking your bat and ball and going home, which is a real pity.

For goodness sake, plenty of people on here have said how much they enjoy your story, but several have suggested that your (sometimes) inappropriate replies to genuine requests for help get a bit boring.

Why not stick to posting constructively, rather than trying to "dis" those who like residential property. After all, you DID start with it and still hold it and have said it is the reason you were able to move on to bigger and better things.

Of course, the decision is entirely yours, but whilst I too have thoroughly enjoyed your constructive and informative posts, I know that I am not the only one who just wishes you could tone down the non-constructive, sarcastic posts.
 
I'm thowing a vote into Dazz's corner of the ring, as someone who appreciates the 'no-nonsense' financial responses. And I'm sure it isn't as a minority as you suspect Daz, maybe just a more silent balance.

On the positive side for goswa, if you purchased in Perth at least 2 years ago as your first post suggests, you should have seen some solid equity growth. This will give you plenty of good options moving forward.

Regards, Chris
 
Offtopic, but I'd like to throw in my opinion... I read Dazz's post as playful and funny, as well as being helpful since the sarcasm is obvious.
 
Find another pm

Good on you, wylie :),

I still can remember you replied my questions when I was NEW here. Thanks for helping. ^_^

Used to rent an 2 bed room house for at least $50 less than other similar property on the market and didn't increasing rent for 2 years until I bought a house. By noticy ealier to a certen date, the agent checked the house every 4 month and leaved the report in the house while we are not home. I thought the agent was pretty good.

After bought my first IP, I think it differently: they didn't do their job properly! What's diffence if they didn't check the property - only not as neat as they went - nothing else. As it's doesn't matter they check or not we will not damage the property at all. But for the landloard, how much money they lost?

With my second IP settled last week, I called 2 PM to give me a quot on the rent, one said $260-$270+/w, anther pm said it could only be rented for $210/W or $220/w the most. That's anther $50/w defference. At the end I rent it to the vendor for $250/W, and he is happy with it.

What I wanted to say is: Find anther pm.

Good luck.

Aulyna
 
Thank you Dazzling

Dazzling,
If that really was your last post ... NO DON'T GO!!! I really enjoy your posts, your adroit get-to-the-meat of the matter approach, your humour, your keen sarcasm. I laugh out loud at your posts and often you have cheered me up and changed a so-so day into a brighter and happier occaision. This is not sarcastic, I will really miss your input! Take care, hope the big commercial world treats you well, have fun with the shed.
And maybe call in here every now and then to put us back on the straight and narrow??:)
 
Is it far out of town or something? I have a good friend (great stable tenant too) who can't find ANYthing less than $300/wk for 3 BR in Perth!

I'd get a new PM, or rip the current PM a new one!
 
I've got to say that Dazz's posts are usually a breath of freshish air compared to a lot around here.


Wylie,

1) You're not a moderator or admin!!!

2) Everyone's entitled to their opinion and the manner in which they express it, I suggest if you don't like Dazzling's manner that you either a) see if the forum has an "Ignore" feature and use it, or (and possibly preferably), b) keep your opinion of Dazzling to yourself (ie: pull your head in).

Have a nice '08 ;)

:cool:
 
Peggle said:
2) Everyone's entitled to their opinion and the manner in which they express it, I suggest if you don't like Dazzling's manner that you either a) see if the forum has an "Ignore" feature and use it, or (and possibly preferably), b) keep your opinion of Dazzling to yourself (ie: pull your head in).
Click to expand...

Interesting....I too have written something similar to Dazzling in recent months. I think that Wylie is right one with this one. Most people come to this forum to learn about investing in real estate and we post our questions looking for assistance and guidance. The majority provide assistance and are pleasant and helpful with their advice even if direct and some I believe cross the line. I don't believe that there is a need to be rude and do nothing but "take the p*ss" constantly at the expense of others - I am not suggesting that this applies to Dazzling in all of his replies but really is it too much for some just nice ?

I don't believe that answers have to be sugar coated to make people feel warm and fuzzy but surely one can answer a post without throwing that person under the nearest train for their daily dose of entertainment.
 
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