How long do you wait for the "right tenant" v getting someone on and start cashfow

Hi all,

Just waiting for a vacancy to be filled with my very first tenant and I am (possibly unnecessarily) starting to get a little edgy.

The property was sold to me by a Real Estate agent who is now also my Property Manager. The property settled just last Monday on the 21st but has been advertised for about three or four weeks now. There have been a lot of enquires but not one that the property manager is happy with.

Do I wait it out and trust their judgement? How long do you ride this path for v sticking the wrong tenant in to get an income. Tough call, especially with no experience on my part.

The vacancy rate in the area is 0.5% from memory or very low either way.

I'll give it more time and see how we go but I could do with hearing some assuring stories if you have them.

 

Depends on the area. I posted similar yesterday in the adelaide northern suburbs thread... I had endless applications from ferals who you would not want in, and I waited 3-4 weeks for a good tenant who has been in a year with payment like clockwork.

In many instances, you are better off with no tenant than the wrong tenant.

 

I agree with DaveM. No tenant is better than the wrong tenant - our (ex)property manager rushed to get someone in and it ended badly. The area also had a low vacancy rate so it's not like there were no applicants (indicating overpriced rent), just the wrong kind of applicants. Up to you, but if it were me I'd wait. It's just not worth the trouble.

 

That'll do me. Just wanted to verify the PM's thoughts. This is what she is also telling me, quite possibly panicking on my part through inexperience.

 

Great point, thank you. Of course ideally I do not wan't to have to do anything except watch the rent come in but I feel a little lost leaving it the hands of someone else, especially after driving so hard daily to get to this point. Sitting around watching is not my strong point but I do get that taking the wrong action is not smart just because I wanted to feel useful. These are all lessons I need to learn and not something you can do from the sidelines.

Thank you

 

Ideally, they should give you a summary of the applicants so you know what sort of choices you have.

This way you can also post some of the information on this forum to get other people's opinions.

Another thing to consider is, if you are not getting good applicants can you say for sure that they are not opting for similar properties that are better priced?

 

I prefer empty vs. bad tenant. Headache on empty is getting tenant in and making sure garden is maintained. Bad tenant? Humm, chasing rent, calling the PM, getting PM to tribunals several times, getting quotes for fixes, headache of unpaid rent, insurance claim...

I will wait for good tenant than settle for a bad one

 

Plenty of enquiries or plenty of applications?
You may have plenty of enquiries from undesirables but if they don't put in an application then you don't even have a choice whether to take the money or not

 

At this point I am not sure if they are enquiries or applications. I am very concious of my inexperience and although I want to be all over this like a rash, I also do not want to be a pain in the backside of the PM and questioning everything. Let them do their job to a certain extent until I am sure that they are competent / incompetent was my thoughts. I do now want to be "that guy"

 

@Paterson00 sometimes you need to be that guy tho
I sent an email that say, if they are already too busy with too many properties, I am happy to move my property somewhere else. This is now close to 2 months vacant and area has about 2-3% vacancy rate. Followed up everyday now until all sorted.
Yeah, I'm "that" landlord

 

Maybe spend a few minutes and have a read of something like this may answer some questions..
Annual rate of housing market capital gains slips to slowest pace in 31 months

 

I agree, just getting the balance right. After two months in an area with low vacancy rate I think I would have alarm bells ringing and have good reason to trust that alarm bell too.

 

Today is day number 11 since taking ownership, I don't think it is justified to panic just yet

 

I've had mine empty for close to a month waiting for the right tenant. Could have had a tenant on day 1, but declined them.

Property is in Sydney (15km from CBD) where the median is $1.4m.

Empty over wrong tenant any day. Its hard not to feel panicked, but know that the PM is aiming to pick you a good tenant, not just any dud that comes through.

As @wylie has said, ask the PM why an applicant has been rejected. If they are a good PM who is vetting properly, they should be able to tell you on the spot.

 

That is actually a very good point I had overlooked. It means the PM is conscientious rather than chucking in the first guy to show up with a bond. This relaxes me. Thank you all for your comments and support in stopping the start of a headless chicken run

 

1. Make sure building and landlord insurance is up to date
2. Get the worst tenant possible who will bail in a month and cause endless damage to property
3. Make insurance claim that will not only provide you with loss of rent until you find the perfect tenant, but will pay for the damages (free reno) as well

Kidding ofcourse

 

I might add, the first guy offered asking price, but the agent didn't feel right about him and declined him.
The current tenant is paying $50 less as we dropped the rent to attract a wider pool.

 

You still need to be on top of it to show them that you are a serious investor and not one that is inexperienced or casual about their investments.

If you give them too much space and they don't update you much, they could prioritise other properties where the landlord is on their case every 3 days asking for updates.

 

Maybe I could just bombard them daily with my profile picture, hourly? Not sure how long they would see the funny side of it though.. ha ha