BNE - Leasing out in non peak period and length of tenancy

Discussion in 'Property Management' started by pbja23, 3rd Aug, 2018.

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  1. pbja23

    pbja23 Member

    Joined:
    21st Feb, 2017
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    Location:
    Brisbane
    I have my old house at The Gap (4061) that is ready for leasing. I believe it's a house suitable for the core market there (ie families) as it is double storey with 4 bedrooms, 3 bathrooms and a swimming pool, yard is a bit small though because of the pool. Walking distance to the decent primary schools and a couple bus stops from the high school (bus being the frequent buz service and the house just a couple hundred metres away from the bus stop)

    From talking to the local real estate agents as prospective property managers, they state the peak period is towards the end of the calendar year as tenants move to secure school catchment

    So I'm in a dilemma now, should I have the house advertised now with a more optimistic rent or lower in line with other houses currently on the market, though none of these have the same features nor in close proximity to mine

    And should the tenancy be 4 months or so to get the renewal at the peak period, 6 months (Feb/March renewal), or over 12 months to have the renewal at the peak period next year?

    Thanks in advance
     
    pbja23, 3rd Aug, 2018
    #1
  2. wylie

    wylie Moderator Staff Member

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    When we face a similar timing issue, we generally issue a lease to end mid January. That seems to be a good time to find a tenant.

    I self manage, so I don't have the cost of renewing a lease that some might have, so having a short initial lease is a good idea to test how the tenant is going before committing to a longer one.
     
    wylie, 4th Aug, 2018
    #2
  3. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Location:
    South East Queensland
    December is a BAD time to look for tenants, whereas January is the best time. Any other time of the year is pretty well indistinguishable.

    There isn't so dramatic a difference that it should significantly affect your decision on when to let it out.

    It is usually good to have a tenancy change over around January, you'll probably want to make your decision on lease period based on the applicants. I.E. If you're very confident you'll offer 16 months, if you're not sure you can offer 4 months, or anywhere inbetween.
     
    Tom Rivera, 4th Aug, 2018
    #3
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  4. pbja23

    pbja23 Member

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    Location:
    Brisbane
    Thank you for the advice, may try for a higher rent first and see what the demand is like
     
    pbja23, 4th Aug, 2018
    #4
  5. Ray White Marsden

    Ray White Marsden Logan Property Specialist

    Joined:
    27th Jun, 2018
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    Location:
    Logan and Surrounds
    Agree with Tom, December is not an ideal time to look for tenants but the remainder of the year you will be fine, If you property is in the Gap have you spoken with Natalie South from Harcourts Solutions she will be able to give you marketing advice on how to stand out from the crowd and secure tenants at a higher price.

    Best of luck :)
     
    Ray White Marsden, 16th Aug, 2018
    #5