Our property is finally up for rent!

[luckyone]

OK, so we've finally settled on our new house and it's gone up on the net. The problem is that the place next door is listed for $40 a week less than ours by the same property manager. Both properties are listed at over $500 per week.

The layout and size of the two houses are very similar, but ours is all finished, i.e. we have blinds in, dishwasher installed, landscaping done (artificial turf out the back and mulch with mossy rocks and plants out the front). Theirs only has mulch in both the front and back yards, no dishwasher and no blinds as yet (though I imagine at least the blinds will go in by the open inspection on the weekend).

Seeing as the two properties are listed by the same property manager, I rang him up and he said that due to our landscaping and the nicer presentation of our house, he thought it was worth more but was suggesting listing theirs at a price $20 lower than ours, but they insisted on $40 less.

I now think that the difference in price makes my house look expensive. Should I be lowering my price now, or wait until after the open inspection on the weekend and seeing what happens?

 

[tom32]

OK, so we've finally settled on our new house and it's gone up on the net. The problem is that the place next door is listed for $40 a week less than ours by the same property manager. Both properties are listed at over $500 per week.

The layout and size of the two houses are very similar, but ours is all finished, i.e. we have blinds in, dishwasher installed, landscaping done (artificial turf out the back and mulch with mossy rocks and plants out the front). Theirs only has mulch in both the front and back yards, no dishwasher and no blinds as yet (though I imagine at least the blinds will go in by the open inspection on the weekend).

I know due to my better half if these were the only two properties in Australia suitable for us to rent, we would rent yours with a dishwasher even at a $40.00 premium. I guess the only possible discussion around this re: the other home may be to ask the other owner to take $10.00 a week more i.e. $520.00 over a year to just put one in. I reckon most landlords would jump at $10.00 a week over 12 months for putting in a dishwasher. It only has to last a couple of years to make a return.

Landscaping might take account of the other $30.00 a week but I guess would need to be seen to answer definitively. Your opponents front and back yard with mulch does not really sound so appealing, but I imagine they have trees over the mulch, or something?

Of course all this is personal opinion only which the decision to rent clearly is but it will be someone else's personal opinion I guess that is going to count on the day, though I reckon the agent was close with the $20.00 premium for dishwasher and yard etc. That said on the day who knows you could get tenants like us who a dishwasher is mandatory requirement.

 

[Dazz]

suggesting listing theirs at a price $20 lower than ours, but they insisted on $40 less.

I now think that the difference in price makes my house look expensive. Should I be lowering my price now, or wait

I wouldn't wait, I'd undercut the other Landlord and cut the market out from underneath him/her. Then they can do the same to you again, and you can both tear each other's throats out until you are both paying your Tenants to live there.


Sounds like your PM is really looking after your interests and managing your interests well.


Don't forget the movie tickets, chocolates and wine. They like that. Some may say it's a bit over the top, but I reckon they are your clients, and nothing is too much to keep them happy.

 

[wylie]

If the other one is such a bargain, it will go quickly, and then yours will not be competing with it any more .

If it is only worth what they are asking, and yours (for whatever reasons) is worth more, yours should rent fairly quickly too.

I'd wait for one "open for inspection" day and see what happens. If the other one rents after one open and yours doesn't get any bites, perhaps drop a little but if your agent things it is "spot on", then see what happens.

I find it extremely difficult to price a house to rent with any accuracy, especially in our old tin and timber suburbs where the houses really are not "apples" vs "apples".

We had a situation a few months ago where we had a house for rent, and the house over the street was also for rent, almost exactly the same house on a much smaller block (but our large block included mowing). Its kitchen was nicer, and generally it was just a bit more flash all round. We were asking $440 per week and it was $500 per week. It rented quicker than ours, but that fell through, and the rent was dropped to $460. That got me worried because $20 is not a lot extra.

Ours ended up renting very easily. Our tenant is a professional chap and he loves the house. He wants to buy it. Sometimes it comes down to how a house feels, as well as the rent.

 

[luckyone]

Sometimes it comes down to how a house feels, as well as the rent.

That's good to hear Wylie. I definitely think ours has a more homely feel to it than theirs.

Dazz, you're really not helping :-( But I suppose you already know that. And no, I don't really want to drop my rent, but I also don't want the property to sit vacant for weeks on end.

 

[Lil Skater]

I wouldn't wait, I'd undercut the other Landlord and cut the market out from underneath him/her. Then they can do the same to you again, and you can both tear each other's throats out until you are both paying your Tenants to live there.

Lol!

In all seriousness though, wait until the weekend. If it's a premium property (or what I would call premium property - In other words close to my weekly wage ) then landscaping and presentation makes all the difference.

If people see bad photo's or presentation on the property, they'd be more inclined not to enquire or inspect the property IMHO.

For instance, we've had a fairly nice property on our rent list for a little while with a really bad ad copy and photo's that did it absolutely no justice, so I re-did the ad and changed the photo's today and we've already had a few enquiries.

 

[Dazz]

Dazz, you're really not helping :-( But I suppose you already know that.

Yeah, fair cop Gov.

Perhaps be guided by your PM for a week or two and then re-assess based on what the enquiry level is, and what happens with your competition.

You only need to hook one really interested Tenant. That interest could be something you haven't even figured on, from ;

• Double garage is most important to them
• Dishwasher is a must have
• Backyard is safe for the kiddies to run around in

...or any other facet that you haven't thought of yet.

Good luck with your leasing efforts. Let us know how long it takes.

 

[luckyone]

Yeah, fair cop Gov.

Perhaps be guided by your PM for a week or two and then re-assess based on what the enquiry level is, and what happens with your competition.

You only need to hook one really interested Tenant. That interest could be something you haven't even figured on, from ;

• Double garage is most important to them
• Dishwasher is a must have
• Backyard is safe for the kiddies to run around in

...or any other facet that you haven't thought of yet.

Good luck with your leasing efforts. Let us know how long it takes.

Thanks Dazz, I'll let you know (Btw, that was much more helpful)

 

[softmonkey]

You could drop your rent and sign the first lease for 6 months so you don't have to compete with that property again. Then it'll be easier to ratchet yours back to market rent.

 

[luckyone]

You'll all be glad to know that the open house went well over the weekend. We had 4 groups through (one was a friend to sus out the property manager for us) and 2 applied. We've given it to a couple with a teenage daughter and a cat. Hopefully they'll sign up today or tomorrow. They're paying the price advertised. They're building a house in the same area so wanted one nearby to rent for at least a year. Sounds good to me!

 

[luckyone]

We just lost our tenants!

Damn! Just found out that our tenants have pulled out. So annoyed. Apparently the father got offered a free trip which he just couldn't turn down. Bugger! We did get one other application, but the property manager has advised us not to take them on as they are too higher risk. Ah well, back to the drawing board.

 

[cmason]

Damn! Just found out that our tenants have pulled out. So annoyed. Apparently the father got offered a free trip which he just couldn't turn down. Bugger! We did get one other application, but the property manager has advised us not to take them on as they are too higher risk. Ah well, back to the drawing board.

out of interest do you know how the one next door went?

 

[luckyone]

Well it's back up on the net open up again for in a couple of days (same day as ours again), so I guess they didn't get anyone either. I had a friend go through for us and she said that the same groups of people went through both properties.

 

[luckyone]

Well our property rented at the open house last week (it was also going to be open on the weekend, but this was no longer necessary). It went for the full asking price on a 12 month lease. Yay! They move in this weekend. So happy.

Just for interests sake, the one next door still hasn't rented. We ended up with 7 applications on ours all up, so not sure why they haven't got anyone yet. Very strange!

 

[redwing]

Well our property rented at the open house last week (it was also going to be open on the weekend, but this was no longer necessary). It went for the full asking price on a 12 month lease. Yay! They move in this weekend. So happy.

Great news

Just for interests sake, the one next door still hasn't rented. We ended up with 7 applications on ours all up, so not sure why they haven't got anyone yet. Very strange!

Maybe due to the below?

The layout and size of the two houses are very similar, but ours is all finished, i.e. we have blinds in, dishwasher installed, landscaping done (artificial turf out the back and mulch with mossy rocks and plants out the front).

Theirs only has mulch in both the front and back yards, no dishwasher and no blinds as yet (though I imagine at least the blinds will go in by the open inspection on the weekend).

 

[luckyone]

Thanks Redwing . I'm very happy about how quickly it rented out.

 

[Lamingtons]

That's awesome luckyone, sounds like you found a good PM as well!

 

[luckyone]

That's awesome luckyone, sounds like you found a good PM as well!

Yeah, so far so good. Will see how he goes in the future.

 

[luckyone]

Just an update about this. My tenants did move in as planned, but moved out again after a mere 3 months :-( So annoyed that we took them on now and they've stuffed us around. Ah well, at least they have to pay rent till new tenants are found. Probably not easy at this time of year.

 

[weg]

Probably not easy at this time of year.

You should be OK now that Xmas and New Year are over. Just prior to Xmas would be worse.

I had tenants move out on Tues 28/12. I advertised on Wed 21/12 and Wed 29/12 and had new tenants move in on the 31/12. So 2 days of vacancy .