Hi,
I would really love some advice from someone who has some outside the box ideas on how to get our two properties rented.
We have built two detatched 2 bedroom, 2 bathroom units, double garage all units in an area that is walking distance from major shops, clubs etc, in a good area of Morwell Victoria. We researched the area spoke to agents who said that anything brand new was rented straight away. We paid $285 000 to build these two units, and two agents quoted $260 each a week which is what they are listed for. These units would return us $80 per week net, if they are rented at this price, with depreciation etc. Another brand new unit has been vacant on the website at $200 per week for the same time ours has, so maybe it isn’t the price. The agent has said the people who looked through rented houses for $320 per week etc. Our target market is working people, or corporates who want a new place to live. As they did not rent over the quiet Christmas period, I contacted two major corporate businesses in the area who place people and organised for the units to be placed internally on their intranets. I also contacted five other major businesses in the area, they either did not place people or had placed people six months ago in long term accommodation. I interviewed the agents thoroughly and chose the one we went with as they were approachable and negotiated a good deal, and were a big company. They have contacted there major office in Traralgon and that office is also promoting our units, but to no avail as yet. The area of Morwell is mainly older run down houses and units, but the area we are in is newer and the place where people would like to live in that area.
We could lower the rent, but do not want to cut our nose off to spite our face, the agent has said it is really quiet at present. I know there is a shortage of good quality rentals in Traralgon and the overflow will come to Morwell. The area has huge projects over the next five to ten years. The Coal to Oil plant going in at Flynn, in five to 10 years is just one major player.
I will contact the hospital and lastly the university.Any other ideas, I can’t believe they are not rented they were available for rent late December.
Need to fix this[baaa]Warm regards
angelinvestAngela, first have a look at similar properties around the area and figure out whats different. Then drop your rental rate or offer an incentive to get them in the door. remember it is the void periods that kill an investment not the low rents. So do what you have to, I do think you are missing something, possably the estate agent??[blink]. eamon
(ned_kate26980)
I’m guessing the problem relates to the ready availability of well-located 3 BR houses in decent condition for under $150.00pw. That’s your main competition. Your second source of competition is that in marketting to proffessionals, for $260 per week, they could simply buy something for $200,000. There are brand new 2 and 3 BR townhouses for that price, or slightly older houses.
The idea of renting to uni students might not float either as on-campus costs at Monash are around $100 pw, and Churchill has 3 BR houses of ‘student-quality’ for $130 to $200pw.
And finally, the the socio-economics of the town are working against you, and a rental surplus may be too (check the number of 1-week-free-rent deals on realestate.com.au).
Regards, F. [cowboy2]
Hi Angelinvest,
Do you have a “For Lease” Sign out front of your properties?
Isn’t Morwell/Traralgan known for its Medical Training? – hopefully the hospital can help you out or the Training Company that looks after/places the Medical Registrars? (not sure of the name).
Also maybe if you are really getting desparate, offer to pay part removalist fee’s.
Good LuckTara.
Hi Tara30, EamonNSW, and foundation,
Thanks all for your feedback, you have all given great advice, I will ring the hospital tomorrow, we will lower the rent, it is true it is the void in rental that kills you, and the area does have low priced rents etc.
We will be monitoring the estate agent too, a time frame and that is it. Will look at realestate.com.au too.Thanks heaps
Best wishes to you all
Warm regards
angelinvest [exhappy]Maybe you could “include” bills….
For eg. $320 per week… Water, electricity, included.
Water is normally included in the price anyway…
it just sounds better when you add electricity too.
When they sign the lease… you could cap the bills at a certain price.Advertise with INTERNET optional…
You can compare internet plans at:
http://www.whirlpool.net.au
it’s almost as if the water, electricity, internet is covered…
People seem to pay for convenience these days…Create WIN-WIN situations [thumbsupanim]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
