Property manager not being able to find a tenant

[oneworld]

I have a IP in Turramurra. The PM is not being able to find a tenants since the last 7 weeks after the last tenant left. The rent has been brought down to $670 (from $700). Upon asking, the PM gives one of the two reasons: (i) there were no enquiries (before the open house), or (ii) People came to open house, showed interest but then there were no applications. In the last week, the PM said that he contacted the people who came for the open house but one of them said No, and the other one was uncontactable.

Is it the PM, the house, or the market ? Another PM (not mine) I spoke to, said that in most cases its the price that it not right leads to tenant not being found. He thought that by reducing the price, a tenant should be found as long as the house is livable. The price is now what this other PM suggested.

Its an old house bought last year only. But it is a tidy house. Single story, three br and a nice backyard. I did some improvements when I bought it (paint, fix fixtures), but not too much because down the track, I intend the knock down and rebuild. It is very much livable. All the plumbing, appliances in the house are in good order.

Any suggestions anyone ?

 

[The Fence]

Which one of these is it?

 

[Brady]

I have a IP in Turramurra. The PM is not being able to find a tenants since the last 7 weeks after the last tenant left. The rent has been brought down to $670 (from $700). Upon asking, the PM gives one of the two reasons: (i) there were no enquiries (before the open house), or (ii) People came to open house, showed interest but then there were no applications. In the last week, the PM said that he contacted the people who came for the open house but one of them said No, and the other one was uncontactable.

Is it the PM, the house, or the market ? Another PM (not mine) I spoke to, said that in most cases its the price that it not right leads to tenant not being found. He thought that by reducing the price, a tenant should be found as long as the house is livable. The price is now what this other PM suggested.

Its an old house bought last year only. But it is a tidy house. Single story, three br and a nice backyard. I did some improvements when I bought it (paint, fix fixtures), but not too much because down the track, I intend the knock down and rebuild. It is very much livable. All the plumbing, appliances in the house are in good order.

Any suggestions anyone ?

What are comparable properties in the area renting for?

Vacancy rates as per SQM is 4.1% which is a little on the higher side

http://www.sqmresearch.com.au/graph_vacancy.php?postcode=Turramurra&t=1

If your property is in good condition and presented/advertised properly in a normal market then I would suggest the issue is price.

 

[Jamie M]

Another PM (not mine) I spoke to, said that in most cases its the price that it not right leads to tenant not being found.

Yep, that's usually the reason.

Has your current PM mentioned the idea of dropping the rent?

How does the rent for your IP stack up against comparable properties in the area?

Cheers

Jamie

 

[onlyifamppowered]

My way to speed up PM'S
Give 3 or 4 local PM'S a key , tell them first to find tenant gets the job.
They often don't like it but it works for me and keeps them honest.....
Just my 2 cents
Rob

 

[oneworld]

Yes, the rent has been reduced one time, and that too on our suggestion. The PM made no pro-active suggestion in this regard. I am going to wait for tomorrow's (Wed) open house and see the result. If there is no outcome, I am very inclined to call another agent, especially in the absence of any feedback from my PM (in terms of what measures can be taken to redress the situation). My PM has basically told me that all they can do is wait since the listing is on both the main real estate websites. He has said that there is not much else that he can do.

 

[vaughan]

Have you done a search on the re web sites and worked out what similar places are renting for? Then you'd know EXACTLY what it should be renting for.

 

[oneworld]

Yes, have researched the price (comparable properties). It is the right price I think. I went to the open house today. No one turned up ! I asked the agent if the price should be reduced further. Agent has said that reducing the price is unlikely to make a difference. He said that it was the market itself. Not many people are making enquiries. And if they are, they don't come to the open house. Even if they do come to the open house, they do not put in the application. For some of the people, it is not suitable because it is too small for them. But for others (not that many), I really do not have clarity what it is that turns them away. Price or the house itself. I have not got any clear answer from the agent here.

 

[S.T]

Might be stating the obvious here, but why are they doing an open house on a Wednesday and not a more normal Saturday morning? Of course if you're not getting any enquiries it might not be making much of a difference, but anyway.

 

[oneworld]

Actually, the open houses are on Wed and Sat both.

 

[Scott No Mates]

What else is on the market? Are they better than yours? Location? Vacancies appear slightly higher and this could be due to end of year, school holidays, wind direction etc.

No interest could be related to poor marketing ie lack of photos or incorrect description, unfavorable lease terms etc.

Try the multi list option.

 

[S.T]

If you want post us up the link to the online advert and see if the forum can offer some more advice, might be as Scott says, poor pics, description, marketing etc.

 

[marg4000]

I asked the agent if the price should be reduced further. Agent has said that reducing the price is unlikely to make a difference. He said that it was the market itself. Not many people are making enquiries. .

I totally disagree. Reduce the rent to below comparable properties by $10 or $20 a week. That will give you the widest appeal. Every week the property is vacant is costing you money.
Marg

 

[willb]

I had a similar issue. I gave it to another agent and said if they find a tenant it's theirs. 2 days later the original agent had a signed lease.

And I have not had to tell the agent again. They find tenant quick because they know they will loose my business.

 

[MichaelGilbert]

Wow 7 weeks and still no tenant. mmm something is not right.

Price?
Agent not responding to enquiries promptly, just trying to get away with open homes because the are time poor?
Marketing not in the right areas, not targeted enough?
Presentation? If people are coming to your property but and voting with their feet (and walking away) it may suggest your presentation is not good enough or the house is not good enough for the price you are asking.

Check out comparable properties yourself on realestate.com.au - search for your area and price range (650 - 700) and for your exact number of bedrooms and see what comes up. widen your search if you need to depending on the number of properties.

I've written a blog about the time I think it should take to find tenants; it may or may not help or provide some insight.
http://www.rentmyestate.com.au/how-long-does-it-take-to-find-tenants/

 

[jenni_nextplace]

Is the agent advertising it properly. Have you checked out the website and details. If they are getting no inquiries maybe there is something wrong with what they have posted.

Anything will rent at the right price.

If the market is tough drop the price again so they choose your property over another. They are choosing other properties over yours for some reason. Price talks a lot.

 

[oneworld]

Thank you for some very good suggestions above. One, I am going to ask the agent to drop the price slightly. Second, I am going to speak to a couple of agents who have leased out properties in the area in the last few days.

 

[oneworld]

Michael, read your post. It makes sense ! Thanks.

 

[Wandering]

If you want post us up the link to the online advert and see if the forum can offer some more advice, might be as Scott says, poor pics, description, marketing etc.

Don't discount the value of following this advice Oneworld. Plenty of experienced heads here that will be able to give you an accurate unbiased guide as to what is wrong.