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

Pretend you are a potential tenant and search on the realestate website and see how easily you can find your listing.

Then submit an enquiry using a fake name and an email address which they don't know.
Now wait to see how long it takes them to send an email reply back.

If they wait too long, they could be missing out on some good applicants.
Everything matters from the quality of advertising to the agents ability.

 

If the PM is using the term enquiries then they are just that. There is phone and email enquiries then there would be xx number that come to the home open and then there would xx applications taken from home open and then xx applications submitted.

If there is an application submitted then they will generally ring and tell you about the applicant from their application details and ask if you would consider them and if you would then they will do the remainder of their checks like tenancy database, last PM, employer etc.

 

Is this in Perth? What sort of area has such a low vacancy % that you can afford to be picky?

I generally agree with the sentiments above, but I've been erring on the side of "lets just get someone in" in Perth recently.

 

I rushed to get my first tenants ever in, and this is exactly what happened no damage though fortunately

 

This is on the Gold Coast near Nerang.

 

Ha. A couple of years ago myself and 2 mates tried to get a property in Stafford that was advertised at $800 a week. Now understanding that we were 3 young blokes (clean, organised and all work FT) we offered to pay $1000 a week to help our cause. Was still rejected.

 

Generally they aren't holding out for amazing tenants. It was my understanding that they take the first good/decent applicant. Surely there has been at least one decent candidate.

 

If they are being picky, this is good, .6 % must be in a risky area, so yeah, wait for the right one, the PM is not trying to punish you & also should want to avoid headaches

 

When my IP was empty I put the word out on the street that I needed a tenant.

You know when you're waiting for the "walk sign" and you notice those little bits of paper stuck to the pole saying things like "I need 20 people to lose 20kgs" or "I made $5000 last month working part time". Well I had my ad there.

No. I didn't find a tenant but a lot of people rang me asking if I wanted to lose 20kg or make $5000 otherwise find another corner to stick my advertising lol.

 

If the advertising is sound, the property manager is being proactive with enquiry and people are showing up to inspections but not applying in a low vacancy environment it is most likely a pricing issue. It's always good to shoot for the upper end of the appraisal bracket but at the end of the day, it can also take 1-2 weeks for a tenant to move in once they are even accepted (notice on their end etc.) and nothing kills your cash flow more than vacancy - although this is not advocating taking a bad tenant!

Discuss with your PM a strategy to commence rent reductions (don't just drop it willy nilly) as there really shouldn't be more than a couple of weeks' vacancy in a low vacancy environment if everything is done correctly.

Other options include paying for a Highlight Listing on re.com.au or getting professional photos if you haven't done so already (which are highly recommended regardless). If your PM is really on the ball and working to get your property let then there should also be after hours private inspections. We have found this works amazingly well as not many agencies will do it and so many people just find it too difficult to make one open on a Saturday!

- Andrew

 

I would go with the advise that @Nick Valsamis gave you and check to see if the agent is working for you as it could be them and the market.

Also have a talk to a few other PM's in the area and see what they say about your property.

 

Its a balance between taking a tenant that is risk free as possible (as far as checks go) and minimising vacancies.

Sometimes opinions not based on facts (I don't want a tenant from that cultural background because - they do something that I consider to not be ok), are very expensive opinion to have. I once said to a landlord, do you know it is costing you ) $450/ week to keep the opinion that you don't want people who have this particular cultural background? Is that a good business descision to make?

 

by @Jennifer Duke What makes property managers decide against a tenant

 

It is always good and more profitable to wait for the right tenant.
Make sure the price is correct as good tenants never feel that they should be paying a premium (and they shouldn't). Bad tenants will (offer to) pay over the market because they are desperate. Ensure that the property marketing material is appealing for these better tenants.

Generally there are 4 "P"s to consider;
Position... Highlight the benefits and adjust for the negatives (example: 3rd floor apartment offering views and additional security etc)
Presentation.... make sure the property is as clean and appealing as possible. Poor tenants will accept poor condition and make it worse. Good tenants have a higher expectation.
Promotion.... pretty hard to rent a secret. Make sure that you are hitting all the avenues. Saving on marketing doesn't work. Pay for professional pictures.
Price.... it fixes everything!

 

5th "P"
Property Manager and one that does their job properly

 

Thank you all. An update just to say that we now have tenants and all seems to be going well so far. Time will tell and hopefully the story will be a happy one.

All your comments are very much alleviated and I'll return to your tips and stories to save me from panicking again in the future.

 

Wait for the right one ...its not worth getting the wrong tenant

 

I have had rentals for 16 years in QLD, Vic and WA and manage one myself.
Of course you want the right tenant. That is someone who pays the rent on time and basically looks after the tenant.

I am the landlord who works with the real estate agents to get the best result. When my properties are empty I get an update once or twice a week - who walked through the property, applied, what did they say. I look at the competition on realestate.com.au and who is adverting on Gumtree for the same thing. I look at the working the PM put into my ad and get them change it to something better if I think it can be improved. I asked the PM what the situation is with other properties.
If it's not rented in 2 weeks, I drop the rent and then again the two weeks after that (It took 6 weeks to get the last place rented cause the rent had dropped). And that is the case for all my properties for the last year or two.

Every week the property is empty, I'm losing money so better to make it under market value and get someone in.

I run the excel spreadsheet to know exactly what my expenses are for the year and I keep records of everything from the agent.

Investing is NOT a sit and forget thing where you hope the agent will do the right thing. It's your money, your risk and your responsibility. You are in the drivers seat. You make the decisions. If the PM says the people are not acceptable - they need to explain why. Maybe you can change something about the house to get it rented.

Don't be ashamed of wanting to be anal and in control of property investing. You have to be in control and making the decisions. If you aren't prepared to step up and do that, no one will do that for you and you might as get out of the game now. I don't think that is you though because you are on this site and said you want to do stuff.

Dymphna Boholt gets her staff to check in with the agents for her properties every month and sometimes every week. If the tenants are behind in payments, this keeps them updated.

If you aren't happy with the property manager - change them. One of my agents sacked me because I picked them up on errors in their management. Now I have a manager who works with me.

I love the game. Good luck.