Rental demand in Frankston North

Sorry to post another Frankston thread. However as an owner of a property in Frankston North I'm interested in people's thoughts on rental demand in the area.

From what I can gather from realestate.com.au rents are rising with not too many properties available for rent. Is my observation correct or are properties being rented for less than they are being advertised for.
 
Having managed several properties in Frankston North over the years I can tell you that 6 times out of 10 they are renting for lower than the advertised price and are often vacant a little longer while waiting for a good tenant. Also, the rents are split into two separate areas. The properties that have had little to no work done on them and are quite run down - $235 - $250 per week and the properties that have had a lot of work done to them to make them lovely homes $260 - $310 per week.

The problem I have seen a lot of landlords have in Frankston North is that they have purchased an old run down property and put a lot of money into bringing it up to standard and they want this reflected in the rent amount received. People are less willing to pay $300 in Frankston North when they can go next door to Carrum Downs or in Frankston to rent for the same or less.

Frankston North still has a reputation to shake and while we are seeing a change slowly it will take time before the rent amounts come up substantially. If you are advertising for around that $270 mark you will still have the afore mentioned issues but they won't be quite as bad. The reason for this is that at $270 per week, you are still under-cutting the neighbouring suburbs and will often find a long term frankston North resident looking for something a little nicer and more homely. There are also a higher number of first time renters looking in Frankston North.

When leasing a property in Frankston North it has always been a little harder to find a good tenant resulting in a slightly longer vacancy period.

Just thinking about a rent increase? Talk to your PM about the condition of the property, have you done works to it in the past? It may be time for a bit of an increase they will know better than any of us as they should be familiar with the property.

Personally, I think that over the years there will be a change in Frankston North as more investors purchase in the area and do renovations. I have also noticed an increase in owner-occupiers in the last couple of years. I still have hope :).
 
Thank you for your response. Looking at real estate.com places available for rent our place looks quite under rented (though the tenant has been living there for over 5 years). However if the ended rental price is less than what's been advertised in many cases, that gives me more confidence that the rent is not too low.

I'm not too fussed about the amount we receive as $10 a week extra isn't a big deal. However I don't want a situation where if we ever had to sell and it's established that the rental return is extremly undervalued and we get less than we should get from the sale.
 
If you don't mind my asking, when was the tenants last increase and what are they currently paying per week? Rents vary so much in Frankston North, it is hard to peg it down but if it hasn't been increased in a few years then I would look at issuing the increase ($5 - $10) depending on your PM's advice. Only because if the prices do go up, it is better to be only $10 behind and not $20!!
 
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