Advice for Property Vacancy

Hi, Guys,

I have a vacancy problem with one of my investment properties and would like to receive some advice.

I transferred my principal residence (a 3-bedroom apartment in Kingsford) into a newly setup trust structure as my investment property after purchasing a house in May this year.

This apartment was built in the 70’s, 3-bedroom, 1 bathroom, separate toilet, internal laundry, single lock-up garage with a big storeroom at the back, top floor, balcony with 180 degree views of the City and Port Botany Bay. The property is located only 5 minutes walk to UNSW, 5 minutes drive to Coogee beach, 3 minutes drive to Prince of Wales Hospital and only 7.5km to the City.

After moving into the new house in May, I engaged a local real estate agent to act as the property manager for me but they could not find a tenant in the past 5 months. Initially, I was advised that the weekly rental was $520 (they even put it down in writing for me) and since there was no interest, I had reduced the rental a few times from $520 to $470. Unfortunately, they still have no luck to lease out the property. Subsequently (about 4 weeks ago), I talked to other agent in the area and decided to let them have a go. Since the property has been vacant for over 5 months and the agent suggested dropping the rent further to $420 per week and since no response in the past 4 weeks, I have dropped the rent further to $400 per week.

I believe this is a reasonable (or even below) market rent for a 3-bedroom apartment in the area. I even gave the whole apartment a new coat of paint after I moved out in May. Both agents told me there were nothing wrong with this apartment and they were surprised that no one was interested – not even an offer put forward.

I believe the asking rent of $400 per week is fair and reasonable as compared with other properties on the market. I have also contacted the accommodation officer at UNSW and Prince of Wales Hospital to list this property. Since I have done all I could and still have trouble with this particular property, I appreciate any suggestions or would like to share your experience in getting a tenant for your IPs.

Alternatively, if you know of anyone who is interested in renting a modern, clean and spacious apartment in Sydney Eastern Suburb, please let me know. Thanks.

Chordq