Yay or Nay

[zimby]

Howdy

So we've got a property on the rental market.
Has been listed above market rent with little interest( has had reno's done and was testing the market as few comparable properties.)
We've had a potential applicant apply and waiting for their financials etc.
Asking rent is $410 per week its a woman and her small dog applying for a 3 bedroom 1 bathroom house.
Should I be concerned with only 1 income against this if it comes back that she is in the low income bracket?
We would likely need to drop to 400/390 to get more tenants through and seems will lose another weekend due to G20
I'd like to think I have a low risk profile, but when money carrots are dangled it can be hard.

Cheers

 

[Macca]

I consider $410 to be a poor price point unless the market is "hot"

A lot of people would search to $400 and your place is not going to show up in their search.

If your prospective tenant is OK then problem solved but otherwise I would go with $400 and expect to rent a lot quicker.

 

[Propertunity]

Should I be concerned with only 1 income against this if it comes back that she is in the low income bracket?

Technically, your PM should not be recommending a tenant who would be paying more than 30% on their income on the asking rent.

 

[zimby]

Technically, your PM should not be recommending a tenant who would be paying more than 30% on their income on the asking rent.

Yea, I agree however they haven't applied yet and were checking about the pets.
So I said yep about the pet and lets see their financials.
Was originally listed at 425, so the next drop was going to be in the 400 bracket for searching.
I'm guessing that she's not taking home over $1300ex a week so I might need to go back to the market.( average Household income in 2011 for Brisbane north is 1394 pw via census)

 

[MichaelGilbert]

I don't think it matters if there is only one income it's just it should be 3 times the rent (basically said). However this also depends on the kind of person they are, I have found a lot of single mums are actually great budgeters (if thats even a word) and they are more likely to pay their rent before any entertainment or paying other creditors. (just my experience of course).

To be honest I'm not entirely sure what the average household income has to do with the tenant affording the rent. But I'm open to new theories.

 

[S.T]

Be a bit careful about testing at a higher than market rent. You don't want your advert to go 'stale' and potential renters may wonder whats wrong with the place.

Agree with Macca, $410 not a good price point. You'll get more hits at $400.

 

[nhg]

As above, start at $400/week. Then put up price upon their requests.

eg. pets +$10
air conditioning +$10
new something or other +$5

That's how I get my rents up past market rate.
$5-10 at a time adds up.

 

[WattleIdo]

Howdy

Asking rent is $410 per week its a woman and her small dog applying for a 3 bedroom 1 bathroom house.
Should I be concerned with only 1 income against this if it comes back that she is in the low income bracket?
Cheers

Could be a great tenant who will look after your property and appreciate the renos. I would definitely say yes to this one if she has a job.

 

[Sez]

I would be more interested in her rental reference, how much rent she is currently paying and if she pays that on time. A single woman in a 3 bdrm house has to pay more but she has less money going out as it's just her and her dog. Better a single adult than a group house *shudders*.

 

[property_girl]

I wouldn't be concerned with why a single woman wants a three bedroom house, and I wouldn't be concerned about whether she can afford the rent. She may have regular interstate visitors who stay with her. She may want an office/study. Do you worry how your other tenants will pay rent? If not, why worry about this one? I would be much happier to rent to a single women with a pet than a family with young children or a group of young adults--much less wear and tear.

 

[EN710]

She could be a well paid women with pampered pooch and family who visit every now and then. I know pet owners who will rent a house bigger than needed just so they can keep their pet.
Who knows, you might actually be at luck

 

[Nattl3s]

Hi Zimby - Just renewed lease on IP in carseldine - 3 bedder 1 bath tenants with little dog for $400wk. Unrenovated though. Had plenty of single lady tenants in the past without probs for other IP, if your PM is checking them shouldnt be issue (hopefully). Cheers, nat