Hi guys
My unit has been vacant for over 6 weeks now. Dropped price several times and offering less price than some of the neighboring apartments which are brand new. Even offered free rent for a week ! But nothing. There are close to 7 similar apartments being advertised in the area and i turned up for their inspection and i was the only one ! Not sure what to do. Let me know not mention the area incase it results in panic for some and affects the area further !
In the six weeks there have been a couple of instances when someone has offered considerably less and i did not take it up since i thought i would get others.But the agent did not quite give me the proper picture of the rental scene and i guess i did not do my research well enough
Property was tenanted for 7 years prior with not much vacancy . Its a popular area within walking distance to pretty much all amenities.What do you think are my options. Should i switch agents and hope they can get me someone ? Any other tips ?
Thanks
Hi Bacchu, what is the market telling you? If it has been advertised for 6 weeks I suspect you will need to drop the rent. What are the vacancy rates in the area? Is this a regional area ?
Let me guess, east coast mining area/town???
In addition to the above questions.
How is the apartment presented / what is the condition?
Are you missing a basic amenity – heating / cooling / dishwasher etc?
I know you said that the others aren't having people turn up, but how long are they staying vacant?
Is your RE agent any good?
The thing worth considering is that it's no good continuously being the 2nd best place people look at… there is no 2nd prize. You need to make the place number 1. In the last few weeks I did some basic renovations and dropped the rent by 15% in order to get it rented. I also changed the advertising because over the years the 'description' hadn't changed.
7 years of near continuous tenancy, maybe it is time to freshen up the paintwork, replace carpet or do whatever maintenance you haven't done for the last 7 years.
What is your current due diligence telling you? What is the market rate? What does the agent suggest? How many units do they currently have vacant (on their saturday list)? How long have these been vacant? What are they doing to get it leased?
not in regional area and not in mining town.
vacancy rates – not sure – which site do i check ?
apartment is only 7 years old ..well presented..excellent condition..had it repainted.all amenities present in apartment.
Rest area also vacant for a long time it seems, coz they keep dropping their price too . Already dropped the rent 10% from previous tenant. Looks like will have to drop more.
Maybe option to change agent too . Have to look at the contract now.
Rather than ranting, can u paste the adv link from realestate or domain so that we can give u some feedback?
Hi Bacchu
I was in a similar situation where it took around 5 weeks to rent my apartment (Capital city near to major amenities – just an oversuply of available accom). I lowered the rent by $40/week and offered 2 weeks free rent. I also hounded the RE agent to make sure they were doing all they could. I also made sure the ad was updated during this time and looked professional so it looked like a new ad.
It maybe the time to interview agents to make sure you have the best agent for your needs.
Cheers,
ChrisA1
Persistence is 'to keep on keeping on, no matter how hard the going may be'
Changing agent is a consideration. Has anybody changed agents ? Their terms say
"30 days notice. If at any time of termination of this agreement the property is subject to a fixed term lease, then the owner agrees to pay agent 5% of the balance of rent payable till expiry of lease."
So if i give them notice and get someone else on board do i have to wait 30 days before they start advertising ?
I changed agents and didn't have to wait the 30 day period as it was in between tenants (similar situation to yours). How long have you been with that agent? If it has been a little while, then you may be ok.
You could try it now and say that you are wanting to change agents and see if they bring up anything. At the very least, it may cause them to ask why and you can raise your concerns.
ChrisA1
Persistence is 'to keep on keeping on, no matter how hard the going may be'
bacchu wrote:In the six weeks there have been a couple of instances when someone has offered considerably less and i did not take it up since i thought i would get others.
That is the market telling you what the rent should be in your area at the moment, no property manager can fix that. If it has been advertised in RE.com/ domain & the property manager is doing opens I fail to see how another property manager is going to do a better job. If anything it will be vacant longer due to a change over of PM.
Good luck
Lower your rent and make a small research on your competitors as well. Make some improvements if there are things that needs to be repaired or changed. Repaint your walls if necessary to attract more tenants. Make the place more comfortable to live in. Keep it clean and neat so that your tenants will appreciate the are and will not think of moving out.
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This reply was modified 10 years, 6 months ago by FarlonHilt.
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This reply was modified 10 years, 6 months ago by FarlonHilt.
how do you find out what the vacancy rate is for an area?
Hi Tom
Easiest place to find them is in the back of API and YIP magazines.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
If you are talking about Perth, my place took 5-6 weeks to secure a tenant. The rent is $10 less than it was in 2012 and in end the property manager offered the first week free.
“The rental market’s number of properties for lease did soften (now at 5,711), however this is almost 50% up on September 2013. The vacancy rate is at 4% and it takes owners an average of 33 days to find a tenant.”
I had one of my properties unrented for 5 weeks with other units also in the building unrented for a longer period so I thought of a different strategy. I hired furniture for the unit from a company who specialise in this when selling properties. They took new photos with the modern furniture and advertised an open house on the Saturday. I had 3 applications to choose from all at once! Yes it did cost me but at the same time it saved me in the long run. Good luck!
Kylie Walsh | PPI Investment Advice
http://ppiinvestmentadvice.com.au
Email Me | Phone MeLicensed Property Financial Advisors who provide Tailored Property Advice and Solutions
One of my staff recently needed to take a lot of time off work to look for a new place to live. Her problem was the times that places were open for inspection. Have you thought of opening the apartment for a longer period, maybe sitting in there yourself over a weekend?
Difinitely Yes ..Sometimes it is because of the location..
“30 days notice. If at any time of termination of this agreement the property is subject to a fixed term lease, then the owner agrees to pay agent 5% of the balance of rent payable till expiry of lease.”
So if i give them notice and get someone else on board do i have to wait 30 days before they start advertising ?
Firstly, I agree with the other posts above that your current agent may not be the issue. To address this question though – it is not possible to say without seeing the other terms of your agency contract. This term just says you need to give 30 days’ notice, so if you terminate the agreement you still have to pay them for another 30 days. There may be other terms that prevent you from using other agents, or that say you have to pay them a commission if you find a tenant while you have a contract with them, even if they don’t find the tenant for you.
If you aren’t happy with the agent though, then it may be worth terminating the agreement. Check the terms about what sort of notice you have to give (whether it has to be in writing, letter, fax or email etc, what sorts of details have to be included in the notice). If nothing else, by taking these steps it may prompt them to work a bit harder for you. And if you’re thinking about it, then give them notice ASAP so that time starts ticking on the 30 days.
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This reply was modified 10 years, 6 months ago by
Property was tenanted for 7 years prior with not much vacancy . Its a popular area within walking distance to pretty much all amenities.
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