Tenants needed

[Piffin Yonnies]

Ok peoples what would you be doing in this situation? Thanks in advance for any input.

Construction on my first investment property in Newmarket Brisbane has been complete now for seven weeks. Just prior to completion I gave the property to a nearby agent and they then inspected and agreed that $370 wk was achievable. They also said that the market at that time was a little slow for rentals in Brisbane.

Three weeks went by and nothing then a call with the angle of lowering the rent to $350, I agreed. Two weeks and nothing but another call to lower rent to $320 and I agreed.
I put a call in this morning and nothing but advice to lower rent again which I have said I will consider.
The agent in question is under the banner of a well known national group and being interstate I thought that would be the safest bet.
The property is a brand new stand alone 4 bed Queenslander replica 4kms from the city.

I’m now thinking of taking the property away from this agent and listing with a different agent.

Any advice or thoughts welcomed, thanks Piffin.

 

[Peter_Tersteeg]

Get another agent in for a second opinion on the rental value of the property. Then tell the current agent that they've got 1 week to get a tenant in place or you will move agencies.

7 weeks is far to long for a property to be on the market. The agent should know their job well enough to be able to price the property in order to get both the best rent and a tenant reasonably quickly. I can understand 2-3 weeks vacancy, but 7 means that they're either incompent, or they're buying your listing.

If they do put a tenant in, I'd consider moving agencies anyway. This will send a clear message to both the old and new agents that you don't like being d**ked around.

 

[Piffin Yonnies]

Thanks for the advice PT-Bear

Thinking I wont even give them that week I'll give them the flick tomorrow and list with another agent.

 

[Cosmo]

Get ‘em all onto it. The PM who gets you a tenant wins the management (for at lest the management termination period!) Talk to some of the other PM’s and see what the rental situation is in this area. Gross oversupply of rentals is causing rents to go down and vacancies to go up at an amazing rate (well in Sydney anyway).

Good luck

 

[Piffin Yonnies]

Thanks Cosmo.

Question is though how to get them all into it when they all seem to want a signed contract before they will begin to act.

 

[Cosmo]

Hi PY,

I was in this very situation recently. I arranged with another PM to find me a tenant at the rent I needed. I really did this to motivate my then current PM. The new PM found a tenant and then I was faced with the termination clause in the management agreement. The new PM agreed to absorb this expense.

An ex PM I’m good friends with said that PM’s concentrate on getting tenants for themselves (yes, they too have IP’s !) then mates/ long term landlords then the wingers then the newbie landlords who haven’t learnt to scream yet!

Really PY you want to motivate them to fill your property first above all others.

 

[Piffin Yonnies]

Thanks Cosmo

I'm about to start screaming, you'll hear me soon.

 

[simonjulie]

Hi PY
When it comes to letting, as with selling, a property, I believe, there are two factors. Exposure and Price.
If both of these bases are covered there is no reason why your property won't let.
You may have to adjust your price to the current market and insure that your property is receiving enough exposure.
Kind regards
Simon
PS welcome to the world of hard knocks.

 

[johnnyb]

Hi PY,

Don't know if your IP is one of these, but there is a row of about 3 or more replica Queenslanders that have just been built in Newmarket which I pass on my way to work. Apart from a slack PM could the problem also be a bit of competition from similar properties.

John.

 

[Piffin Yonnies]

Hi John

Spot on it's the first one in that row, could be the case although I believe the one directly next door was to be owner occupied.

Update is I've just had another agent through and they say 350 should be obtainable in current market but if wasn’t on main road 380 could be achievable. About to give them a go.

Very observant of you.

 

[johnnyb]

Thought it must be one of those. They certainly seem nicely done, and in a fantastic location although as you say, the main road there does detract from them a bit. Also it still looks like a bit of a construction zone with work on the other houses in the row still going on (or has it just finished), so maybe once everything is cleaned up a bit it will be more attractive to tennants. I'll have to stop and have a closer look tomorrow when I ride past - is your one the first one at the city end or the other end?

John.

 

[Piffin Yonnies]

First one at the other end John.