I currently have a low yielding rental in Halls Head. Its about 200m from the beach. I am considering one of the below options, moving forward: 1) Continue to rent at the current low yield. 2) Make some improvements and increase the rent (paint, change flooring, new blinds). 3) Make it a holiday rental. Option 2 above was my original plan, but with the current labour shortage in WA, I am nervous about starting any work. With the border remaining closed, I am not sure what sort of rental demand this place will continue to attract. Any local insights about the rental marke in Halls Head will be appreciated.
Is it a beach shack I think rents are now strong in Halls Head Unfortunately property managers here are in the main terrible. Could it have something to do with poor management?
Halls Head is funny, I have seen some props going under contract in day or two and some have been sitting for longer than 2 months....overall I have heard that rents are strong not sure why low rent being so close of the beach, Is it a house/unit/duplex?
But if that's not the original strategy for the property, I'm just wondering if you're trying to polish a (yield) turd up.
Now that selected property has been leased for $450 and based on your details, you are much closer to the ocean so even if it needs work the rent should be circa $400 as there are some other properties beach side asking around $600 even $800.
Have you looked at rental comps? this at least should give you an idea on what market rent is Then work out what to do from here What does your pm say on ways to increase rent? No point spending money until you identify what is required to raise the rent
The original strategy was to possibly put a second dwelling (STCA) or do a knockdown rebuild, however I don't think its viable in the current market. So want to hold it a bit longer and try and improve the yield, as we slowly move into a high interest environment, holding costs will rise. Would you do things differently?
Yes, I wouldn't do anything that conflicts with my original strategy, unless I was sure that I was writing off those strategies. For example - no point spending money improving the building if you're going to knock down rebuild.
Fair point. However I want to keep an open mind, in case my original strategy is not practtical in the current market conditions.
Property is still rented and I have asked PM to arrange some minor renovations, to increase asking rent. Do you have a rental in Halls Head?
The current lease is ending in Aug so let's hope if Market stay strong as who knows with IR increase if ppl started to drop rents!
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