Rental Market Slow?

angela

angela

Hi
Is it just me or is anyone else having trouble reletting at the moment?
I have had a house available for nearly 3 weeks now and have dropped the rent $20 from what it was previously rented at, to encourage applications.
The house was rented for $390, when tenants moved out PM suggested $410. A little interest at this price, but no applications. Same when it dropped back to $390. I instructed her to drop it to $370 today. Rental is at the top of the market here, but is suitable for dual occupancy (flat downstairs)
House is in Ipswich.
 
I was looking around the Sydney Northern Beaches rental market about two months ago. I was quite surprised by the number of rentals listed as avaliable now (and empty) - this was a tell tale sign for me that things were quite. Normally you would advertise once the tenant gives notice so you have someone ready to move in as soon as they move out.

This turned out to me good for me - At the time I was unemployed, and had no problems securing my first pick.

It takes a while for economic data to come out, but it looks like people are genuinely struggling. Data would suggest this occurred around Christmas last year. As rents in many places have gone up faster than inflation/wages, people have had no choice but to get share accommodation, move in with friends or family. This will reduce demand for rentals.

I also expect Petrol has a role to play in places away from work or populated areas. When the tenancy agreement expires, some will shift closer to work if the weekly rent vs weekly petrol bill is favorable.
 
We just signed a new tenant for our IP in Frankston - 2 weeks from tenant leaving to new tenant moving in, so not bad.

But, this is for a 2 x 1 unit at $195 p/w rent.

A bit different to something at nearly $400 p/w.

I think the rental pool at that price range may be a fair bit smaller?
 
we had three applications to choose from in February. And yes, $370 is at the upper end of the market for Ipswich.
My PM rented a house last week around the corner from ours for $350, and it is only 3 beds, where mine is 5 beds. Fingers crossed I won't have to drop the price to $350, but if thats what it takes......
 
5 Beds - umm, I suspect that is your problem, but It does had good potential for share accommodation. When I was last speaking to an agent they said they had endless number of people after just a room or share.
 
Hi Angela,

We are in Ipswich too and while we aren't reletting at the moment (crosses fingers) I have noticed that there seems to be a lot more houses available than there was just a short time ago.

Maybe the fact that houses were so cheap here until recently meant more investors moved into the market and more investors mean more houses available for rent.

I mentioned in another thread that a house next door to us has been a rental for as long as we have been here and while the tenants seem to change often it has never been empty until the last time. This time around it took a little longer to relet. This one is a three bedroom, at the lower end of the market. I guess that suggests that the slow down is all over not just at the top end.

I hope you don't have to reduce your rate. Let us know how you go. I would be interested because we are putting up the rent on one of ours when it comes up for lease renewal soon. We might find ourselves looking for new tenants as well.

We have let it slip under market value because we have good tenants but if we don't catch up a bit soon we never will now that interest rates are falling and there is an expectation that rents won't rise.

Cheers ... Leonie
 
I have seen some rent softening in inner Brisbane. About $10 per week on a $450 pw property. I was attributing it to seasonality and am expecting a pick up in Jan / Feb but could be wrong.
 
Is the same PM advertising this property and is there anything different in the way it's being advertised this time?

What does the PM think about the local market at the moment?
 
Hi

I was talking to my PM yesterday to check in on this matter. She told me residential accomodation within the CBD is 0% vacancy for the first time in while.

cheers
BC
 
Our Rochedale PM said that townhouses are very quick to let, but houses are taking longer - several of them on the market for 3-4 few weeks.

One of our tenants - in a townhouse- is getting a $10 a week rental increase, on a 6 monthly lease.

RK
 
You have to look at market conditions at the time.

This is historically a slower time of the year. And do not believe everything you watch or read in the media.

The main focus at this time of the year is to get the property rented.

We know that this is a slower time of the year and if your agent is astute to the market, why did they suggest a 6 month lease. Like you said you had 3 applications to choose from in February. Between January & February in most rental markets throughout Australia is the busiest time, so if your agent was on the ball they would have suggested to you to take a 12 month lease to keep in the cycle of being in the busiest time of the year.

If your property has been vacant for three weeks and the tenant gave 2 weeks notice prior to the end of the lease then the property has been advertised for 5 weeks. How many inspections has the agent had & what was the feedback from the inspections. My rule of thumb is if you have a great advertisement with great photos (multiple ie 8-12) and you have had 5 groups inspect the property and you do not have an application then the price you are asking is too ambitious. Your agent should be suggesting price adjustment not the other way around.

The other thing to look at is where your property is situated on www.realestate.com.au If it has been advertised for at least 5 weeks it maybe down to page 3 or 4 (or worse) in the rental listings.

The other thing to bear in mind in the Ipswich market is that you have a lot of development happening in and around Ipswich. The new properties coming on line are having a major impact on the older properties. Ie tenants are preferring to rent the brand new properties and are moving out of the older style properties as rental increases are being put in place.

If your agent is on the ball they should be making all the suggestions to you to get your property rented. If they can not offer this to you go and find an agent that can.
 
i have put up a 'for rent' sign in front of my property on Sunday night
got my daughter to do it with spray paint on a piece of something i found in a garage

got 1 enquiry on Monday and 3 enquiries today, with 3 people wanting to come and see the property
 
We also have found plenty of interest from a sign we had made. We have done the DIY sign in the past, but last year had a professionally made sign (mates' rates through a friend).

Quite amazing how many calls we get from passers by (though the downside is that they have no idea of price until they call).
 
Sustainability said:
I was looking around the Sydney Northern Beaches rental market about two months ago. I was quite surprised by the number of rentals listed as avaliable now (and empty) - this was a tell tale sign for me that things were quite. Normally you would advertise once the tenant gives notice so you have someone ready to move in as soon as they move out.

This turned out to me good for me - At the time I was unemployed, and had no problems securing my first pick.

It takes a while for economic data to come out, but it looks like people are genuinely struggling. Data would suggest this occurred around Christmas last year. As rents in many places have gone up faster than inflation/wages, people have had no choice but to get share accommodation, move in with friends or family. This will reduce demand for rentals.

I also expect Petrol has a role to play in places away from work or populated areas. When the tenancy agreement expires, some will shift closer to work if the weekly rent vs weekly petrol bill is favorable.
Click to expand...


Things have definately changed on the beaches now! I am in Manly and our office hasnt had a property vacant longer than a day between tenants for over 6 weeks. We have also have only had one or two properties for rent each week and have rented everything at the first showing. We have HEAPS of people desperate.. particularly for 2 bedroom places under $500 per week. The increases we are seeing in rents when people are moving out are huge... the biggest was last week with one townhouse that we struggled to lease 18 months ago has just been leased for an extra $230per week.
 
wylie said:
We also have found plenty of interest from a sign we had made. We have done the DIY sign in the past, but last year had a professionally made sign (mates' rates through a friend).

Quite amazing how many calls we get from passers by (though the downside is that they have no idea of price until they call).
Click to expand...


Wylie,
you are right a sign out the front of the property is one piece of the puzzle.

We are a large agency and are quite proactive with our growth and on average we will have 80 properties being advertised for rent at any given time. We employee a person to drive around and erect and take down For Rent signs( not a cheap exercise the signs cost $22 each with a number disappearing plus the cost of an employee & motor vehicle) but we believe that this is an important part of the advertising process.

Yes you will get an number of people having no idea of what the price is but when you tie it in with the Internet advertising & rent lists, it gives the potential tenant an instant recognition point when they are trying to find the property(a 600mm X 900mm sign stands out).
 
I agree so much. I have purchased blocks of flats / house etc from a simple drive bye sign:)

But SOOOOO Many agents just seem to think they are a waste of time. Like people do not drive around where they want to live any more:eek:

Just log on the net. Then half the time advertising on the net is just crap.

Like imagine : No address ,

House $ 360 P/Week then agents Ph No.

How do these people get jobs:(
 
Jason Rose said:
Wylie,
you are right a sign out the front of the property is one piece of the puzzle.

We are a large agency and are quite proactive with our growth and on average we will have 80 properties being advertised for rent at any given time. We employee a person to drive around and erect and take down For Rent signs( not a cheap exercise the signs cost $22 each with a number disappearing plus the cost of an employee & motor vehicle) but we believe that this is an important part of the advertising process.

Yes you will get an number of people having no idea of what the price is but when you tie it in with the Internet advertising & rent lists, it gives the potential tenant an instant recognition point when they are trying to find the property(a 600mm X 900mm sign stands out).
Click to expand...

Oh the never ending put up and take down of signs... it is enough to drive someone crazy... our property managers usually do it themselves because we can't find anyone to do it for less than $50 a go - so $100 to get it up and down. For sales properties who want just a generic sign we get a guy to do it. Because the PM's do it themselves, sometimes they just dont get done - it isn't fun drilling and hammering up a sign in a suit.
 
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