We are currently having some disaster tenants who are up to 28 days late with rental payments and not treating the property with any respect or the surroundings. I do have a property manager and asked her to get rid of them.
Difficult situation for us at present, we have 3 vacant properties, 2 are being renovated, one ready but no tenant, 3 not paying rent.
The two properties currently being renovated are ready for occupancy in the next two weeks, but no inspections since we have purchased 4 weeks ago. I may have made the mistake of not listing with the local rental manager, but sticking to the rental manager whom I have had for a while, who is quite good but not really local.
Any words of commisseration or advice? what are others current experience with the rental market?
ReginaHi Regina
What market are you operating in?
Part of my portfolio is in a low end unit market and found that the fhog really took a lot of tenants out of my market with the vacancy’s throughout the area enormous. Like pages and pages of available properties not just at one agent but every agent in the area.
I have found that the market is just starting to recover, with renovated untis in demand again, these are at a premium to the standard ($120-130 in comparison to $170)
The other word of reasurance is that a well presented property is always going to be taken before a run down property so the ones you are renovating should not posse a major problem unless you pitch the rent to high.
In relation to pm I have found that in the end it is better to have a local pm rather than one away from the area. For years I used only one PM, with my properties up to 25km away from the PM. Made it very convenient from my perspective but the vacancies were always a number of weeks. Circumstances changed which forced me to move all my properties and as a result engaged local PM. Now the vacancies tend to be much shorter to non existent in most of the markets except the one mentioned.
hth
ziz
Your advise is much appreciated, thank you and I will politely ask my current property manager if she will release me from her authority to engage some one more local. All our properties are going to be clean nicely renovated and located but not over the top. I am talking about wantirna, ferntree gully, croydon and boronia. Unfortunately the non-paying tenants were inherited when we brought this property.
Does any one know when the FHOG finishes. Unfortunately it has caused a serious imbalance in the rental market. Do others agree things should start improving. There have also been a lot of units built in the outer east, so there is probably a glut of rental properties on the market. We try and stick to a median rental range, approx.200 to 240 and include garden maintenance, in some cases I don’t mind pets.
We certainly have not brought a generic formula unit, but properties that are well located and have that subdivision potential.
The other issue is, if you tell tenants that you plan to build in the back yard, they loose interest very quickly. I’ve now asked my rental manager to not mention it, until it actually starts to happen and then we can offer a rent rebate for the inconvenience.
reginaHi Regina
The other thing you may want to try is get your current PM to contact and list the property with some PM’s that are local to the property. The only thing you then need to watch out for is that the local PM does not dump one of his undisirable tenants on you.
Interesting point that you intend keeping the tenant in place ones you start developing. Normally this is very difficult because of disruptions and liability issues unless it is a corner block and you establish a fence between the house and the development.
I would certainly never mention my future intentions to a tenant again, having done this ones and 2 months later they up and left. Yet the action did not happen for 2 years. The other thing that tends to spook them is when you get valuations done, they start fretting about a possible sale.
Cheers
ziz
Re: your question about the FHOG.
I think that it will remain at least until the next election unless the housing market cannot be slowed by higher interest rates at which point the government has an excuse to act quicker.
I wouldn’t expect it to be eliminated, just either reduced or means tested.
My remember… this is only my opinion [
]Bye
Steve McKnight
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
I agree re letting tenants know re subdivision, it frightens them off and you cannot get tenants and one (good)lot I have we relocated to one of my other properties, which they were very happy about. They didn’t like the idea of living next to a developement site. I’ve now asked my property manager to not mention developement to applicants.
I think once tenants are in and settled, we can advise them when things are ready to roll, put up a fence where possible and reduce the rent, as an incentive. My property manager is part of the stockdale and Leggo group and has advised me, she has listed in the other local branches.
We have given notice to the non-payers. At some stage persistent late rent payments become frustrating.
ReginaI agree re letting tenants know re subdivision, it frightens them off and you cannot get tenants and one (good)lot I have we relocated to one of my other properties, which they were very happy about. They didn’t like the idea of living next to a developement site. I’ve now asked my property manager to not mention developement to applicants.
I think once tenants are in and settled, we can advise them when things are ready to roll, put up a fence where possible and reduce the rent, as an incentive. My property manager is part of the stockdale and Leggo group and has advised me, she has listed in the other local branches.
We have given notice to the non-payers. At some stage persistent late rent payments become frustrating.
Regina
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