Well, I’m pleasantly surprised at the results from our ad recently.
We had a 4 x 2 house in a decent area that was renting for 1,650 p.c.m…..woefully negative cashflow situation.
I got peeved off with the whinging residential tenant 12 months ago and bumped the rent up to 1,800 p.c.m. to get rid of him. He stayed.
After enduring 12 more months of whinging, we sent him a notice the other day that we wanted another 2 year Lease signed to cut down on the paperwork. $ 2,100 p.c.m. for the first year and 4% escalation to 2184 p.c.m in the second year.
Thankfully he cracked a wobbly about too higher rent and me being a crabby landlord and decided to leave.
The whole family spent 3 hours yesterday tarting the place up whilst they all sat on their bums and watched us, looking down on the so called slave labour. I was mildly displeased with their useless disposition.
We advertised the property today at 2,800 p.c.m. and have been inundated with calls.
A lovely couple with 3 kids have agreed to take the place at the full asking price of 2,800 p.c.m, with the second year escalating to 2,900 p.c.m.
The prop is now teetering on neutral cashflows. Excellent.
Thank goodness the current tenants rejected our offer of 2,100 p.c.m. because I wouldn’t put up with their constant bleating.
Hope everyone else is having some success increasing the rental returns of their Perth props.
Cheers.
Hi Dazzling,
Just can’t work out what a 4 x 2 house is. Is it a four bedroom, two bathroom house? (I thought a 4 x 2 was a block of wood!!)
Thanks, Wylie.
Hi Wylie,
Yep 4 bed and 2 bath.
PS great result Dazzling.
For any other Perth investors out there you should be cranking your rents up. The market has moved in your favour. An recent article in The West said median rents had increased by 20%+ last year.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Derek,
thanks for info read this in paper today, I think they stated 24% rental increase over last 12 months, I believe in miracles.Also, similar scenario in Bunbury, however rents are about 20% higher on average than Perth.
Dazzling,
Great work.
I cant really complain too much about the Perth resi market, maybe one ratbag tenant who is now out of my life, otherwise it has been a dream run.(Hard work never killed anyone, buy hey why take a chance)
$650 a week?? Wow! Thats impressive. I’m sure the cap growth have been phenomenal too. Was it a fully furnished executive rental? And if you don’t mind sharing, which suburb is it in?
HUGE rent, what the property worth in the market ?
“It’s not how much money you make, It’s how you spend it that matters.”
Aspiring property developer
Giulio Taranto
HUGE rent, what the property worth in the market ?Hmmm, not so sure about that. The prop is worth ~ 840, but the loan we have on it is only 400. So the increased rent is only just covering that 400 loan plus some of the outgoings.
At 2,800 gross p.c.m., we think the rent is still pitifully low.
As a comparison, I’m looking at a skanky industrial yard right now, listed for 862 and it rents for 7,500 nett p.c.m., with a 5 year lease in place. In our minds, there simply is no comparison. I’d dump the house in a heartbeat if I had my way.
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