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Attracting tenants while building secondary dwelling

Discussion in 'Property Management' started by swanqueen, 22nd Sep, 2015.

  1. swanqueen

    swanqueen Well-Known Member

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    19th Jun, 2015
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    Location:
    Melbourne
    We're in a situation where we're trying to lease out the main house while waiting for construction to start on a secondary dwelling in the backyard.

    So far we have not found tenants - most prospective applicants go cold the moment they hear the word 'construction' and 'granny flat'.

    To those of you who have travelled this road before, what did you do to attract tenants, or what other alternatives did you take while the property was being constructed?
     
  2. JohnPropChat

    JohnPropChat Well-Known Member

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    Location:
    Perth
    Would you be able to put a temporary fence? If you can access the site from the side like a strata block?

    Alternatively, reducing rent and telling people upfront on the listing may get you tenants that are fine with it. I, personally, wouldn't mind if there is a fence as it is no different to a construction next door which I won't have any control over it.
     
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  3. swanqueen

    swanqueen Well-Known Member

    Joined:
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    Location:
    Melbourne
    Hi John,

    Yes there will be a temporary fence separating the construction zone.

    Builders are also asking for access to water, power, and there will be deliveries made to the house, which may inconvenience the tenants significantly.

    We are also mentioning on the listing and during opens that construction will occur.

    Reducing rent would be a good option - Thanks for that, i'll pursue that with the property manager.
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Location:
    Canberra and Sydney
    Money talks - reduced rent is probably going to be the biggest kicker.

    Cheers

    Jamie
     
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  5. neK

    neK Well-Known Member

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    Get a good PM.
    Drop the rent by a few bucks
    In 2010 when i built, i dropped the rent from $430 to $410 (property was tenanted).

    If vacant, try and get the fence up where possible so it feels like its already separated.

    Colorbond fence works well as panels can be easily taken off and put back on if the builder needs some more room.
     
  6. Biz

    Biz Well-Known Member

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    Location:
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    Been through this 3 times. First one was fine the other two were headaches. The tenants knew going in it was happening and still gave me grief. You need a good pm and a tight lease. As other have said make sure the fence is up before anyone even comes to inspect. Give them a diagram of ehat is happening so they understand. You'll need to drop the rent about 5-10% too.