Rutherford IP has not been rented from xmas

:(

I guess this is a rant in someway. Anyone has IP here and can advise the vacancy period? PM asid 4-5 weeks however might be longer as it just came out in xmas.

Long story short, property was left in poor state by the previous tenant. So after clean up and a bit of freshen up, it was ready on 15th of DEc and has been listed since for $290 pw in December.

Due to low interest, we reduce the asking to $280pw. There are several people looking around last week, but haven't go any applications yet. I'm wondering :
  1. Is it worth to reduce it further to $270? PM said the main issues is that there are so many rental properties in the area, with $300+ a week people can get bigger or newer house or with air con (min is smallish 3 bedroom with good sized backyard)
  2. Should I wait? will the listing go 'stale'?

P.S. I can send the link to the listing through PM

This is the property before and after - it's old with original kitchen, neater after painting etc.

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How many beds ?

I have a 2 bed in third ave and get 275pw
PM is dowling maitland and their not too bad although I do keep
Them on thier toes !

I have never had an issue with vacancy 2 weeks at most
 
How many beds ?

I have a 2 bed in third ave and get 275pw
PM is dowling maitland and their not too bad although I do keep
Them on thier toes !

I have never had an issue with vacancy 2 weeks at most

It's 3 beds with one garage - 2 bigger beds and one smaller bedroom (i.e. fit one single bed). Smallish kitchen with separate dining and living, old bathroom as well. I have just moved the management to Leah Jay, so it's too early to say whether they're great or not. So far the PM is responsive though.
 
You don't need drugs to get your psychedelic hit from those bathroom tiles.
I thought the tiles would be a selling point to a certain crowd. :D
 
Personally I would not go any lower than 280
Thanks Theodore. I don't like to reduce it any further either :(

You don't need drugs to get your psychedelic hit from those bathroom tiles.
I thought the tiles would be a selling point to a certain crowd. :D

Haha it's dual purpose bathroom, safe you money from buying mushrooms.
Certain crowd as in... older crowd? :D
 
Get your pm to delete the listing and redo a different one - same pics in a few days.
This will stimulate fresh interest.
The listing is stale.
 
Do you have any feedback from people that have looked at the property? What are they saying about it and why it doesn't meet their criteria? A good PM would ask these questions at opens or through a few follow up calls.

Is it worth spending a few $ and getting a split system air con installed in living room? This is usually one of the first things I do, so my property is competitive.
 
Is it worth spending a few $ and getting a split system air con installed in living room? This is usually one of the first things I do, so my property is competitive.

I was thinking about some fencing/landscaping on the front lawn so there's a bit more privacy.
 
Get your pm to delete the listing and redo a different one - same pics in a few days.
This will stimulate fresh interest.
The listing is stale.

Will mention it, thank you.

Do you have any feedback from people that have looked at the property? What are they saying about it and why it doesn't meet their criteria? A good PM would ask these questions at opens or through a few follow up calls.
There are one couple during xmas period who mentioned that it was expensive for what it was ($290), so I reduce it to $280.
Apart from that, the PM just mentioned that there are a lot of property available and from $300+ they can get newer/ bigger place.

Is it worth spending a few $ and getting a split system air con installed in living room? This is usually one of the first things I do, so my property is competitive.

How much is a split system? $2K?
I have just spent quite a bit on the place (as several things was broken, plus cleaning etc) and air con might only make the place quicker to rent, no increase.

I was thinking about some fencing/landscaping on the front lawn so there's a bit more privacy.

They already have fully enclosed backyard though, and fencing the front yard can mean they have very limited space for car to go through to the garage (the front is smaller than it looks)
 
Over Christmas is always slow ... however ... the market in general is slow in the Hunter Valley atm due to issues with the mines - and with interest rates being so low that many people are buying instead of renting.

Just had a quick glimpse at RE.com ... there are 63 properties for rent in Rutherford alone - ranging from $250/wk for an old 2/1/1 up to $395/wk for a new 4/2/2.

What you have to weigh up is how much weeks of vacancy an extra $10/wk is worth to you.

I had my unit at Adamstown vacant for nearly six weeks, dropping the price from $350/wk down to $310 and then $290, before taking the bull by the horns and undercutting the lowest unit in the suburb by $5/wk at $280 ... got the property filled that week.

It takes a lot of $10/wk extras to make up a loss of $280/wk IMO.

Just put them on a 6 month lease - and then up the rent by $10 in six months
 
If it is in the area of Rutherford that I think it is (southside of the New England Highway in the area just across from the Rutherford shops), then that could be a factor. I believe that area does contain some housing commission.
I also agree on some of the comments that have also been made about stuff like tiles etc. In general, I don't think it would be too hard for anyone to agree on the fact that the property is still quite original.

What does your PM say that market rent should be?

Rutherford has largely been oversupplied for a few years, mainly because of the mining downturn, but also because of all the building in the newer parts of Rutherford and Aberglasslyn. I had a freshly renovated property in Rutherford back in late 2012, also close to the shops but in a much better neighbourhood, and I couldn't rent it for three months. However when the tenants moved out mid last year, it was only vacant for two weeks, because it was competitively priced compared to what else was on the market at the time.

All the advice that has been given so far is good, but make sure you get feedback from your PM on what a fair rental price should be for the property.
 
...

I had my unit at Adamstown vacant for nearly six weeks, dropping the price from $350/wk down to $310 and then $290, before taking the bull by the horns and undercutting the lowest unit in the suburb by $5/wk at $280 ... got the property filled that week.

It takes a lot of $10/wk extras to make up a loss of $280/wk IMO.

Just put them on a 6 month lease - and then up the rent by $10 in six months

Wow, that's a big drop lizzie :eek:
Might need to do so if we still hasn't got anyone this week (they're having another open house tomorrow)


If it is in the area of Rutherford that I think it is (southside of the New England Highway in the area just across from the Rutherford shops), then that could be a factor. I believe that area does contain some housing commission.

Kind of, the neighbourhood is just opposite of Rutherford Woolies


I also agree on some of the comments that have also been made about stuff like tiles etc. In general, I don't think it would be too hard for anyone to agree on the fact that the property is still quite original.

What does your PM say that market rent should be?
On December she said $280-$300.

... However when the tenants moved out mid last year, it was only vacant for two weeks, because it was competitively priced compared to what else was on the market at the time.

All the advice that has been given so far is good, but make sure you get feedback from your PM on what a fair rental price should be for the property.
Yes, tried to call the PM today but she's off for the day. Will contact her again tomorrow
 
Hi EN710,
Awww is the house you painstakingly painted and reno-ed yourself?
I feel for you.
Can you reno it even more yourself, or on the cheap somehow?
For me, apart from price, possible goodies that could tempt me would be a dryer, dishwasher, A/C and heating.
Can you bung in some furniture, if the tenant would like it?
You are able to reduce the rent? I imagine that must be the biggest factor for prospective tenants so if you can afford it, go for it.
 
In the past I've advertised the first week free. Six months lease and then bump it up. Do the sums and see what you're prepared to sacrifice.
 
Hi EN710,
Awww is the house you painstakingly painted and reno-ed yourself?
I feel for you.
Can you reno it even more yourself, or on the cheap somehow?
For me, apart from price, possible goodies that could tempt me would be a dryer, dishwasher, A/C and heating.
Can you bung in some furniture, if the tenant would like it?
You are able to reduce the rent? I imagine that must be the biggest factor for prospective tenants so if you can afford it, go for it.

In the past I've advertised the first week free. Six months lease and then bump it up. Do the sums and see what you're prepared to sacrifice.

Yes, this is the place I reno miss green eyes. Unfortunately I won't have any availability to do further reno this year.

I instructed the PM that if there are no applications a couple of days after open house today, take off the listing and relist it several days later for $270.

Will consider free one week rent down the road. The PM said she talked to failed applicants from other place, they're not ideal but might be suitable for short term least. At this moment I rather discount the rent or give one week free in exchange of more reliable tenant tho.
 
I think I've got a tenant (fingers crossed)

Not the most glowing application, but I gave an ok for trial run for 6 months.
PM is telling them that their application is accepted - so just wait to finalise.

Hoping that all good after this and I can start prepping for next IP :eek:
 
OK, Good luck!
You can't ever tell. My current tenants had great references. And yet their rent has been late, every month. :mad:
I've lowered my expectations over the years - I can close both eyes re: high wear and tear, late rental payments...just pay the rent no more than about a month after it's due and don't destroy the property and I'll be happy enough!
 
True - but it was artificially above market due to being rented to "Compas Housing" (who looked after it perfectly btw) ... market rent would've been $310/wk - so a $30/wk drop

Ah I see. My qld property is rented to similar type or organisation but for migrants, market rent though. They do supposedly take care of the place, pay rent 4 weeks ahead and on time.

I was actually wondering if there are similar organisation around Maitland. As long as they pay market rent, on time and take care of the property, I'm an easy one to please.
 
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