Hi all,
I have just completed two renovations on I.P’s (and they have come up very nicely I might add), new bathroom, new kitchen, new laundry, paint inside and outside etc) however, the property managers are claiming that they may take around 3 weeks to have then tenanted. (They feel that this is only a short time)!!!
Is anyone else feeling that there is an over supply of rentals at the moment, or should I just relax.
I don’t want to drop the rents too much yet, or I will defeat the purpose of doing the reno on them.
They are both in large Victorian regional towns with lots of industry and business.
Thanks for any replies.Del
AS a smart investor you should factor in at least 8 weeks vacancy in any calendar year. I do this in a capital city – so in a regional town you should at least factor in the two months. This should also drive your renos and loan structures etc.
Just a thought.
Personally I factor in 4 weeks. In my paradigm if I have a property that takes ,longer than 4 weeks to rent then I will sell it. I feel that as part of my due diligence I should be finding properties that meet my needs. Just how I do business.
Enjoy
AD [:0)]
(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinMy impression, in the outer eastern suburbs is, that rentals are slow.
Can anyone comment.
Our properties are very neat and tidiy, not overpiced, but just sitting there and waiting.Hey Regina have you tried value adding ??
Enjoy
AD [:0)]
(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHi All,
We recently had one of our properties in the eastern suburbs of Melbounre come up vacant (end of lease) and we had a tenant in it within a week of the old tenant leaving. Our agent did a good job of managing the transition, so I was grateful for that. I have seen other places with ‘for lease’ signs up for upto 4-6 weeks in some areas around our IP.
Gus
Gus,
You are correct. A descent property manager will never leave your property vacant too long. They will know the market, and have the ability to source tenants rather quickly.
Considering 28 days notice is required, I feel that is ample time to source new tenants.
Andrews comments are correct. Any more than four weeks, then you may want to reconsider your investment strategy, or property manager!!
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auMy properties offer fantastic value, as previously mentioned, things are still slow.
A few for lease signs up around the area.
I’ve got two property managers, both pretty good.
my sister in law just purchased north of Brisbane, brand new, about to be completed, tenants already waiting and willing to pay 230 per week.One suggestion is to give the keys for the IP to a number of prop managers and let them know that whoever gets the tenant will get the management. I bit of incentive never hurts…
Just an idea, tell me what you think.
Gerry
Just to let you know, have just found a tenant for 1 property, maybe a tenant for the second property, on a casual basis.
It’s always a relief to get them tenanted again, it makes a huge difference to cash flow.Im fairly stuned to read that some people think that 4 to 8 weeks per year is an realistic period of time to factor in vacancy in an IP
Ive got 3 examples,
1/Owned 1 year, tennants have lived there 5 years and paying market rent
2/Owned 3 years, 2 tennants ,not empty 1 day ,even at the change of tennants.
3/ Owned 9 years, lots of tennants,longest vacancy 2.5 weeks ,clean up and new carpets after bad tennant got kicked out for not paying rent,lost 2 weeks rent and replaced 70s shag that had seen better days. Average vacancy would be no more than 3 days per year.
What areas are you renting that you think your IP may be vacant for almost 2 months in a year ? I wont mention what l would say to a PM if they sugested my IP may be vacant more than a week or so after getting 28 days notice to vacate
Regards MITCH
I have to agree with Mitch and think 4-8 weeks is way too long to have something vacant.
If you can’t get a tenant within 2 weeks, you need to get realistic about your rent and meet the market.
As AD also pointed out, you should try and add value to the property with strategies such as 1-2 weeks free rent, or include a DVD player, Sony Playstation, Video rental vouchers, TV etc.
As they say, 80% of something is better than 100% of nothing.
I’d also be inclined to get a new property manager if my property was vacant for this long.
The longest vacancy i’ve had with 4 IP’s over 13 years is only 1 week.That’s why it’s important to buy quality property that you would live in yourself, and that is close to amenities and infrastructure including public transport, shops, schools etc.
The cost of long vacancies is the price you pay when you buy crappy properties in hick towns.
Hi all, I agree with Mitch. Unless there is some real obvious reason a propety should not be vacant for more than a short time. I have eight IP’s and they are rarely vacant. One idea might be to advertise yourself for a tenant and once placed hand on to an agent. i find that some agents are not really interested in advertising or pushing a property.Also some of them have a level of service that is appalling.Also the offering of an add-on eg free one weeks rent works.I manage my own properties and have streemlned the process so it now takes little time.
good luck
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