Talk about shortage of rentals !

[Ross]

I thought all the media hype on shows like Trash Tonight we a little bit of just that, hype.
I've advertised our Drummoyne apartment yesterday and have had 17 enquiries. After allowing the first dozen to come for an inspection tomorrow, I'm having to say no to the rest as I can't manage that many applicants, nor want to.
I truly under-estimated the rental crisis

Ross

 

[jaycee]

I thought all the media hype on shows like Trash Tonight we a little bit of just that, hype.
I've advertised our Drummoyne apartment yesterday and have had 17 enquiries. After allowing the first dozen to come for an inspection tomorrow, I'm having to say no to the rest as I can't manage that many applicants, nor want to.
I truly under-estimated the rental crisis

Ross

Would you normally ahve expected 17 enquiries ?
Sounds like you weren't expecting that many this time round

Why are thre so many enquiries ?

And how does that relate to rental housing availability ?

 

[lizzie]

our last two that were rented - one only made it to the pm website before getting 12 calls that day and rented by the end of the week. the other didn't even get advertised as was snapped up by word of mouth before i'd even finished painting it.

both for full asking price.

the market in newcastle is below 1% vacancy - and that 1% is usually the slum properties or student accomodation.

 

[Ross]

Would you normally ahve expected 17 enquiries ?
Sounds like you weren't expecting that many this time round

Why are thre so many enquiries ?

And how does that relate to rental housing availability ?

I did not expect to receive that many enquiries. WIth other properties I've rented outr (not in the last couple years) I only had maybe half a dozen enquiries.

Really shows the demand for well located and maintained properties

 

[GoAnna!]

Maybe time to up the asking rent. I usually ask more than my PM advises and 90% of the time we get it

 

[redsquash]

I thought all the media hype on shows like Trash Tonight we a little bit of just that, hype.
I've advertised our Drummoyne apartment yesterday and have had 17 enquiries. After allowing the first dozen to come for an inspection tomorrow, I'm having to say no to the rest as I can't manage that many applicants, nor want to.
I truly under-estimated the rental crisis

Ross

I think you have really undervalued your property if you don't even get your properties advertised and they are snapped up.
I have always estimated above the PM figure and was able to achieve the price , though with some delay , but no financial loss during the time frame.

 

[GoAnna!]

PM just contacted me that and suggested that we increase an unrenovated bedsit in Hobart from $150 to $170pw!! (original 1970's low grade tenant look) I would never have been that cheeky cause I thought people would just laugh...but it seems not. Will see how we go.....

 

[Ross]

I just got enquiry number 20 and this gentleman actually offered to pay more than the asking rent.
I did have the property appraised at $410 but have always asked just under market rent so felt $400 was appropriate.
I will be advising applicants that the rent will be reviewed after 6 months, I do this with all my properties now as to lock in a 12 month agreement in the current climate is selling myself short.
I dont believe in the whole "rental auction" thing, I know peoples opinions differ on this.

Ross

 

[ianvestor]

Okay, so the fact that your normally charge below market has skewed the stats a bit.... maybe if you had just gone with the appraisal you would have got fewer than 20 enquiries...

 

[s_t]

Why do you knowingly/deliberately give money away to people you barely know??????

 

[FrankGrimes]

Why do you knowingly/deliberately give money away to people you barely know??????

Exactly.... Your costs have gone up due to IR increases, why not pass them on?

If you have had alot of phones calls so there is no doubt you property is in high demand. Put it up to $450 p/w or more.

In my opinion, property managers seem to underestimate the rentals. Always ask for more, I have always asked for more and never had a problem getting a tenant. Don't just accept their advice, its YOUR property. Also don't sign a lease for more than 6 months in this climate.

$400 p/w for something in Drummoyne seems cheap. Unless its a studio

 

[GoAnna!]

Ross,

As a matter of curiousity why undermarket rent?

 

[shermy]

I can tell you that there is a huge shortage of rental properties in Melbourne at the moment. Am currently trying to source a rental property for myself whilst I rent out my PPoR.

At every Open For Inspection I'm competing against at least 15 other applicants. Some of the more 'rundown' properties are lasting longer on the market (2 weeks) but people are still snapping them up. In fact it's a little eye opening to see the standard of some houses for the price asked.

One property looked as though it was ready for demolition. You could actually see daylight between the skirting boards and floor in 3 rooms. master bedroom had plaster falling off the walls. BTW..it's still on the market.

As for getting hold of PM's in this busy time, next to impossible. It's really a cattle call and don't hold your breath waiting to hear back if your application wasn't successful.

But put my landlord hat on, the PM's are more than happy to chat to get my business. I believed I could ask a high $340 pw (2bdr, 1 bath, no off street) but will now ask for $365. Indications from all 5 PM's spoken too is that's reasonable.

Last weekend's paper had 1 and half small columns of Houses To Let. Wasn't that long ago when it was at least a couple of pages.

there's a shortage alright.

 

[Ross]

Ross,

As a matter of curiousity why undermarket rent?

GoAnna
Charging slightly under market rent is something I've done with tenants in the past but have now realised how much the market has changed and no need to do this anymore. I did it in the past as firstly I manage the properties and dont pay agent fees but more-so to avoid having vacancies......can clearly see now this is no longer required. I've had 25 enquiries now in 2 days and have taken the add off the website.
Ross

 

[GoAnna!]

Pleased to hear it....that mythical connection between under market rent and good tenants just doesn't exist. And given the first criteria of a good tenant is that they pay you market rent or above then they fail in my book.

 

[ianvestor]

Also don't sign a lease for more than 6 months in this climate.

All my leases end in January. So whether a tenant signs in January, July, or even March or April, etc, their lease will end in January, so I can get the next lease signed during the peak summer period. Don't be afraid to stray from the standards of 6 or 12.

 

[Nth Brisbanite]

All my leases end in January. So whether a tenant signs in January, July, or even March or April, etc, their lease will end in January, so I can get the next lease signed during the peak summer period. Don't be afraid to stray from the standards of 6 or 12.

Ianvestor or any other Brisbanites, what is the situation in your part of Brisbane. The leases on a number of my properties are coming up for renewal soon. Is there a desperate shortage here as well?

 

[GoAnna!]

All my leases end in January. So whether a tenant signs in January, July, or even March or April, etc, their lease will end in January, so I can get the next lease signed during the peak summer period. Don't be afraid to stray from the standards of 6 or 12.

I too aim for peak rental periods. I have had a variance as much as $50 per week from winter to summer. Also usually more tenants to choose from and I get better quality.

 

[ianvestor]

Ianvestor or any other Brisbanites, what is the situation in your part of Brisbane. The leases on a number of my properties are coming up for renewal soon. Is there a desperate shortage here as well?

Yeah, it seems tight, however personally I'm not experiencing it as crazy as it was a year ago.

I probably got around 9 or 10 couples looking through a standard house I was asking around market rent for ($360 for an unrenovated Queenslander in Chapel Hill), but ended up dropping it to $340 to get a lease signed. PM says the month makes all the difference and I agree; I probably could have got my $360 if it were still January.

 

[wylie]

We tried to rent a house three months ago, and had three open houses. First two nobody turned up. Next one we had two lookers memory and one of them took it. As it turns out, they had to break the lease to move across Brisbane so we just relet it this week. This time, we had an open house and had two who would take it (plus the chap who I have written about and who wanted us to add a deck and close in the front verandah - for no extra rent - he would supply the labour - yeah right).

Five weeks ago my mother and I both had houses open, same day, Holland Park and Coorparoo. We had maybe three or four people through, but certainly not the lining up of people desparate to rent. Our rents are not at the cheaper end, but $460 and $420 and $440 for the three houses involved.

That is not "cheap" rent but are market rates for the houses we are renting, according to agents who came through to give us appraisals.

We have always found, over many years, that we get $20 or more per week higher than the agents suggest. It has always made me glad I self manage, rather than have an agent rent it for less than we could.

However, we also have fallen into the trap of not raising rents as much as we could, which we tend to rectify at the next tenant changeover. In this climate, however, we will be increasing rents at the end of each lease while they are moving upwards.