Rentability

Lee,

First of all I cant answer point one, do not own properties in sydney. Point two, I have been very lucky so far, out of three properties, the longest I have gone without a tenant was about three weeks, and that was on one that I bought recently.

The thing to look at is this, with me anyway: Can you service the debt on the IP if you do not have a tenant, make it a worse case scenario of three months. If the answer is No, then maybe you need to look at the figures again.

For me anyway, one “fear” of IP’s is the “what if no tenant”. I have tried not putting myself in so much debt that I cannot service it if I dont have tenants to help pay. Also I am happy to accept this “fear” and try and make my properties attractive to rent.

It all comes down to the due diligence, if you have done the work and bought the right property, then you should have no problems getting a tenant.

Hope this helps in some way.

wejons1

For me anyway .. the vacancy rates list would only be a guide. Just because the average says one figure does not mean your property may match up.

I should say … I am still learning and what I say is only my thoughts.

My due diligence is along the lines of:
what sort of property is it,
what does it have to offer a tenant
where is it located,
what services (rail,bus,schools) are nearby,
what sort of tenants am I looking for,
what amount of rent am I hoping for,
what else is available in the area,
what sort of condition is the property in,
have a look at RE’s in the area and see what is on the rent books (how many and what are they asking),

and I also look at it and say, would I want to rent it, being with a realistic view too.

Maybe that is bringing emotions into it a bit, but if I didnt want to rent it, why would someone else want to

Just some of things that I look at, others may look for other things, be interesting to see what though. May highlight things that I have not thought about.

wejons1