QLD House tenancy issues

Hey guys, I have a house in Kallangur. It's a 4 bedroom house on a 670 sqm land.

I am facing issues with getting it tenanted. Tough it is not a very old house (around 38 years), my PM says that she is getting feedback that kitchen is a bit tired and old and bedrooms are very small.

Its been 4 weeks since it is on market. Now, I am not sure what can I do with this.

My old tenant was a runner so I am already coping with lots of pending issues related to cleaning, maintenance and insurance claim, so cant really spend money on upgrading kitchen. Even if I spend money on kitchen in some time, what is the solution for small 4 bedrooms?

I dont want to sell the house as even my buying price wont be recovered at the moment.
Any suggestions please on this.

Thanks!

 

The usual short answer is to lower the asking rent. Is that not an option for some reason?

 

Thanks @thatbum for responding.
I have already kept the rent on lower side and paying a lot out of pocket. Lowering the rent further could create cashflow issues.
Also it will attract lower quality tenants. I am already facing issues because of run away tenants.

 

Allow pets?

 

How bad is the kitchen? Is there any low cost option that you could do to improve it? Maybe paint the cupboards or something? Does your agent have any suggestions?

 

Not much you can do about small bedrooms... I'd get a second opinion from another PM about the condition of the property and an accurate rental estimate for the property in it's current condition and the current market for Kallangur.

 

Unfortunately, there are just too many properties in Kallangur/Petrie/Bald Hills and surrounding areas- including new stock. Supply and demand. Allowing pets would be a good idea. If you don't want to spend money on the place, it would probably be a good idea to drop the rent- and deal with the cashflow issues as some money is better than none. Ask the agent for advice. A low rent doesn't always mean a lower quality tenant, sometimes it means someone who would rather a house than a unit but just couldn't afford the extra $. Terrible experience for you.

 

Yes

 

Thanks Kassey, there is no issue as such. Just that it looks a bit old, may be the flooring. Otherwise cupboards and all looks fine

 

You have to be brutally honest here.

Go on realestate.com.au and search for comparable properties in the surrounding area. Sort them by rental asked, lowest to highest. Check where yours fits.

Cheaper properties should be noticeably worse, more expensive ones noticeably better. Check search bands - better to list at $395 which shows up in searches $350-$400 rather than $405 which doesn’t.

And how small is the 4th bedroom? Is it really adequate for a bedroom, or more suited to a study? If so, compare your house with 3 bedroom properties.
Marg

 

Whilst I empathise, your personal situation is completely irrelevant when it comes to letting the property (sorry I don't mean that to sound as harsh as it does). You have to look at it objectively and seperate "what you need" from the equation.

- Luke

 

Hi @PMC Property thanks for reply and I understand where you are coming from. But what I meant was house is already on reduced rent. Other 4 bedrooms are getting above $410 or so.
Kitchen is not that bad and I might improve a bit on up at some point of time.

My main concern is bedroom size. If people are finding them small, what is the solution for that. Can't renovate all the 4 bedrooms I believe. It would be a big ask. I dont know much about renovation though. Can someone help on solution for bedroom size issue. Thanks!

 

Thanks Marg, I have already put it on rent at 390$ which it was already rented on.
Other properties are rented from 380 to 450. They are similar type of properties, not much difference. Mine is very closer to train station and Woolworths. I am still amazed, what is really wrong.

With bedroom size, I think it is a general feedback for all bedrooms. I am not sure what is happening. Do you have a solution for smaller bedrooms as in what can be done in terms of renovation. Thanks

 

As an old RE trainer once said to me: "It is ALWAYS the price"
Even if it is, that there is:
Too much competition - it's the price
Condition of the property - it's the price
Position of the property - it's the price

 

Stage the property - put a double bed in a room and you won't get the objection. People cannot imagine how much they can fit in a room until you furnish it.

 

Thanks @Propertunity for the suggestion , will try that

 

I had a property with 4 bedrooms, the smallest was really a study size. I put a single bed and a small wardrobe in it- people can't picture their furniture in a room if it looks small. What colour is the floor and walls in the bedrooms? I just bought a house with purple and black rooms, they look like little dungeons, when I measured the rooms they were oversized. If the rooms don't have built-ins, that might be part of the problem- people may be thinking that is an additional cost if they don't have wardrobes. What are the photos like online? Do they show furnished rooms? Unfortunately, in that area, the competition is high. I would be staging the property more.

 

List it at $375.

That’s only a reduction of $15 per week, or around $800 per year, taxable. That way you come in as the cheapest 4 bedroom property, which should spark interest.

If a 12 month lease, if possible you can include an increase rent to $380 after six months.
Marg