Heres the story. Currently have IP on the market for $174K ($10k above whats fair) Im planning on reducing the advertised price to $167 shortly. (been on market for around 3 months) Property is in good area, very nice gardens etc, open plan. HOWEVER, the unit is a little “tired”. The tenant of 12 years is a horder. He collects DVDs, books and paperbacks, and although unit is well looked after, it is packed to the rafters everwhere with his possessions. (some accumulating dust) People that review the property continually say they can t see what the property is really like inside. I have increased the rent recently to see if he would leave, but accepted the increase.
I know if I could get in and do $5-$10k worth of renos I could re-advertise for $200k (going rate in the area) However how do I go about this. I though of giving him 60 days notice (not on contract anymore) but i dont think this is the right thing to do.(when he vacates do reno) or maybe I could use all the garage, store his personal belongings, then do renos, but then we are just moving all his crap back in. I could take video and photos to help sell, but i dont want him back in. I would also have to put him in accommodation for the 3 weeks whilst I renovated.
My personal circumstances are changing in 6 months, so can t afford to leave unit unsold. I need to prepare now to take action at the lastest in 3 months time.
Any suggestions?Its your property, do whats best for you.
I know good tenants can be hard to find, but sometimes you just have to look after number one.
Serve the vacation notice, do the reno, and lock in your increased equity when you inevitably sell. Sounds pretty straight forward, and it seems from your post like your leaning that way, maybe you just need to hear it from someone else??
Best wishes
Chris
I agree, serve the notice and do the reno.
One other motivator, though – don’t forget that if it’s Cash Flow Negative, it’s not only the fact that you could get an extra $30,000, you’re also losing money every extra week.
If you want to sell anyway, you know you can get more by doing a quick cosmetic reno and you’re under time constraints – just do it. serve the notice.
Good luck.
Craig.
100% of the shots I don’t make don’t go in – Wayne Gretzky
Selling within a timeframe? Do auctions work in your area?
An idea:
The Tenant has been there 12 years and probably pays the rent on time and doesn’t want to move. You could ask the Tenant if they are willing to sign a new long term lease with the buyer
. Then you could advertise the property as ideal for investment with a long lease and reliable paying tenant.
Or
you might be able to wrap the property so the tenant can buy it over a long time period and not have to move out.
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