Vacancy lead time

[LoneWolf]

I have had a IP settle earlier on this month, however, it has been on the market since beginning of this month. Until today it is still vacant.
Since then, I have changed some curtains, clean up the place a bit.

Now, should I be concerned that it is still on the market, closer to 4 weeks mark at the end of this week?
Or am I just over worried.

This IP is in metro Melb, with overall average/good conditions

 

[tobe]

Last vacancy I had was a bit scary too. I got some proffesional photo's done, and advertised the first week free. I also dropped the asking rent quite a bit. Got someone in the end, but it was an anxious time.

I was also advised to put in a dishwasher and heater/aircon. Which to me seems overkill in a one bedroom apartment in the middle ring of melbourne, but thats the advice I received.

 

[LoneWolf]

I have a good PM and I know that she will look after me well.
But til now, still nothing..

The vacancy will not make me lose any sleep, just that coming to the 4th week mark....

 

[superAndrew]

Melbourne vacancy rates are at 5.6%.

What type of property are you renting out and what is the rent?

Maybe you set it too high.

Cheers

Andrew

 

[Corey Batt]

Personally I'm happy to offer a low initial rent, you can edge it back up to market after quickly getting it leased. If the tenants don't want to pay the higher rent at renewal, you have enough notice while it's tenanted to advertise again at market. You've already lost 1/12 the annual rent, net received rent at a lower nominal value would no doubt be greater.

 

[marg4000]

Check that the rent you are asking is competitive with other similar properties in the area. When it comes down to a choice of similar properties, most tenants will go with the cheapest.

Also ensure that you are at a good place in a searchable range - $395 pw will be picked up in the $350 to $400 bracket whereas $405 will appear in the $400 to $450 range.
Marg

 

[chunho01]

I have my first IP settling in 2 months time. Should I start contacting prospective property managers now? When can/should I start advertising the property ahead of settlement?

 

[Jacque]

I have my first IP settling in 2 months time. Should I start contacting prospective property managers now? When can/should I start advertising the property ahead of settlement?

Absolutely if you can- did you ask for access prior to show tenants through? We always seek this as a clause (amongst others) for our investor tenants as it minimises vacancy rates and saves $$$$. Get onto a good PM pronto and they may be able to use the photos to advertise prior(even if just to their database), even without opens. Best of luck.

 

[bigvman]

I like to offer incentivse to set my home apart from the rest on the market. It depends on the area and best talk with your PM. You have to tread a fine line between appealing to the market and appearing desparate.

Late in the month I would try something like "First 2 weeks rent FREE if tenanted before 1st August!".
I would add that my properties are in rental areas with quite a few always on the market. I need to do something to get to the top of the queue when it comes time to re-tennant.

 

[LoneWolf]

Guys, lend me your wisdom here.
As you may know from my post, this IP has been vacant close to 4 weeks now

Received a mail from my PM today

"It is 2 men, they are both taxi drivers.
They usually have more than the allocated number of people living at the property and do not maintain them very well.
I have rung their current Agent, they say the property is not well looked after and the rent is constantly 2 weeks late."

Now, the question is, should I allow them to rent my IP given the above?
PS: my plan for this IP is to demolish and develop later down the track, could be 12, 18, or 24months, depending on the circumstances at the time

 

[Neptune]

It's a tough one....if you're going to be constantly worried about overcrowding/late payments etc then is it worth the hassle?

Have you dropped your rent so you can get a greater selection of applicants to choose from? That is what I would be doing.