Will 6 weeks bond effect tenant response

[Pablo]

Hi,

I am a private landlord and have advertised my property on RE.com and Domain (through Landlords choice).

The property is advertised at $260 and I have asked for 6 weeks bond as I am allowed to since the rent is over $250 in SA. However I have had an absolutly dismall response.

2 1/2 years ago I had advertised the unit for $250 and had a fantastic response with people ringing up as soon as it was advertised.

Is the rental market really weak at the moment or is the poor result due to me asking for 6 weeks bond?

 

[boomtown]

I would be inclined to believe that six weeks bond is a deterrent but I don't know the SA market.

 

[DaveM]

Whats your target market? $260pw sounds like the low end where people live paycheque to paycheque and 4 weeks bond is typically hard enough to scrape together let alone 6.

 

[weg]

I would NOT drop the bond amount.

It's probably a whole lot of different factors that influence why tenants may not be looking, rather than just the bond amount, but lets face it there aren't going to be too many houses that are half decent on the market for that price, so people will not think twice about paying such a small amount.

I advertised a couple of weeks ago and got a very poor response - normally do 4 days in the Advertiser, but this time did Wed and Sat only. Got zero calls from the Sat ad and a bunch of weirdos rang in response to the Wednesday ad (obviously all evicted) .

Just prior to the ads thought I'd place an ad on Gumtree too, not anticipating much and ended up with 3 great prospective tenants, but was a little too slow to act with the first two (they accepted places with agents), but the third I snapped up.

All up the place was vacant 6 days, from lease to lease.

I think it is quieter but tenants are out there. Also I don't think an agent will do any better if that's another concern of yours.

I always find tenants with in days and have 6 week bonds.

If you want some good tips, on how to sort the good from the bad, to save yourself time, PM me .

 

[Pablo]

Thanks guys,

It s a unit that is why it is only $260 and this is average for the area.

I don't want to lower the bond but its a catch 22 because if I lower the rent under $250 then I can only legally take 4 weeks bond.

I'm not concerned renting it out myself as I have never used a PM at all and always had a good response.

I'm thinking to drop the rent to $240, have a swarm of tenants apply and then have my pick of the best.

 

[weg]

Thanks guys,

It s a unit that is why it is only $260 and this is average for the area.

I don't want to lower the bond but its a catch 22 because if I lower the rent under $250 then I can only legally take 4 weeks bond.

I'm not concerned renting it out myself as I have never used a PM at all and always had a good response.

I'm thinking to drop the rent to $240, have a swarm of tenants apply and then have my pick of the best.

How long has it been vacant?

How much do the other units in the block rent for? What was yours rented for previously?

How about dropping it to $255 - $20 is a big drop.

Recently read here that CJay knew of a few properties that had remained vacant for many weeks.

Not trying to scare you, but did wonder what his comment was about, and would like some feedback on these places and the reasons they have remained vacant.

 

[Pablo]

Ok,

This is the property.

http://http://www.realestate.com.au/property-unit-sa-woodville+west-407813281

From the looks my property is slightly on the higher side compared with the others of similar standard.

It's a house that is divided into two, I own the other one as well which is slightly smaller and it has been renting for $250 for over a year now.

I was renting it previously for $260 and they only just moved out but I have had it advertised for 2 weeks with only 3 people go through were as normally I would have had about 30 go through which is an indication to me that I am asking to much.

I have also noticed that the other properties on RE.com are pretty much the same as when I first advertised so it doesn't look like they have moved either.

 

[weg]

Give Gumtree a try.

I recieved about 20 calls/email responses.

 

[zepth]

One thing I would recommend is more photos of the inside. When I was looking for my current rental I was always weary of what agents were trying to hide when there were more photos of the outside of the house/park down the street than the inside.

90% of the time if I bothered going to inspect it soon became obvious they were trying to hide how crap the rest of the property was. It got to the point where if there wasnt any photos inside the house we just didnt bother wasting our weekend to look.

Food for thought...

 

[goonandtell]

I am looking for a rental at the moment.

Photos of the inside, try and get them with a wide angle so you can actually see the room, make sure its clean and the blinds are open/lights on. If you will accept pets say so in the add. And consider getting a floor plan, especially if its a good layout.

 

[Ideo]

I'm always suspicious of ads in, as this example, SA, that have the agents address in another state.

It could be a factor.

 

[Rob Williams]

Hey Pablo! Hope things are going well with you.
I have a vacancy at the moment (my first in a while). A 3 bedroom property that was rented for $295 per week is getting little response at a reduced rate of $280. Things seem very slow at the moment and this has been my experiece for this time of year, over a number of years. Seems people don't move in Winter, unless they have to.
During the warmer months, this property has had mutliple applicants and I've been spoiled for choice.
The 6 weeks bond may have a bit of an impact, but do you really want a tenant who can't stump up that much bond, anyway? If they are sailing that close to the wind, maybe they are better off with a sub $250 rental and 4 weeks bond.

 

[Pablo]

I'm good Rob,

Glad to see you still on here, it's been a while for me!

I have just advertised on Gumtree, it has certainly come a long way since I advertised on there about 2 years ago, I will let you guys know how it goes.

 

[Aulyna]

It is a bit quiet at this time of the year...

I thought max 4 weeks bond allowed....
Can you get more than 4 weeks bond?

 

[Dazz]

The property is advertised at $260 and I have asked for 6 weeks bond as I am allowed to since the rent is over $250 in SA.

This is all I could find on the SA residential laws ;


Division 4—Security bonds
61—Security bond
(1) A person must not—
(a) require more than one security bond for the same residential tenancy
agreement; or
(b) require the payment of security exceeding the relevant limit.
Maximum penalty: $1 000.
(2) If at least two years have elapsed since the security under a security bond was given or
last increased, the landlord may by written notice to the tenant require the tenant to
increase the security by a specified additional amount, within a specified period
(which must be at least 60 days from the date of the notice), but not so that the total
amount of the security exceeds the relevant limit.
The requirement has effect as if it were a term of the residential tenancy
agreement.
(3) The relevant limit is—
(a) if the rent payable under the agreement does not exceed an amount (which
must be at least $150 per week) prescribed by regulation for the purposes of
this paragraph—four weeks rent under the agreement;
(b) if the rent payable under the agreement exceeds an amount prescribed by
regulation for the purposes of this paragraph—six weeks rent under the
agreement.
(4) The relevant limit is, in the first instance, calculated by reference to the rent—or if the
rent varies, the lowest rent—payable during the first six months of the tenancy
(expressed as a weekly rent) and if there is to be an increase in the amount of the
security, the relevant limit is calculated by reference to the rent (expressed as a weekly
rent) payable when the notice of increase is given.


This term "prescribed by regulation" is a bit iffy.....are you sure about the limit in SA is $ 250 pw ??

In WA, the limit set waaay back in 1987 was $ 500 pw, and they recently (in 2010) bumped it up to $ 1,200 pw.

I'd find it very strange if SA's limit was a puny $ 250 pw.

 

[willair]

Hi,

I am a private landlord and have advertised my property on RE.com and Domain (through Landlords choice).

Is the rental market really weak at the moment or is the poor result due to me asking for 6 weeks bond?

Maybe read the fine-print in your insurance policy,most of the insurance we use has a clause in there somewhere on how much bond is required upfront at the start of the lease..

 

[Rob Williams]

In SA, you can colelct 4 weeks bond when the rent is < $250 and 6 weeks bond when the rent is > $250.

 

[boomtown]

If it sits vacant for 2 weeks theres your extra bond moneys right there (and you get to keep those).

I suggest going out of your way to avoid vacancies.

 

[Dazz]

In SA, you can colelct 4 weeks bond when the rent is < $250 and 6 weeks bond when the rent is > $250.

Hi Rob,

Where is that stated ?? It's not in the Act...

 

[weg]

Not the Act, but this SA Gov site states what bonds are allowed. Housing SA also approve bond guarantees of 6 weeks > $250.

http://www.sa.gov.au/subject/Housin...ncial+considerations+for+renters/Rental+bonds