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How long to rent out your IP in Brisbane?

Discussion in 'Property Management' started by melbourne171, 19th Sep, 2016.

  1. melbourne171

    melbourne171 Well-Known Member

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    I have bought a IP in Brisbane East suburb - approx 5km from CBD. Just worry about the rent market is flooded with vacancies. Has anyone rented out your IP recently? How long did it take you to rent out?
     
  2. vbplease

    vbplease Well-Known Member

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    We just had a turnover of tenants last week.. Terrible time to have a lease end but it was vacant for 3 days. We just did a reno on the property so it did present well.

    If it had an outdated kitchen, bathroom etc, no doubt it would have sat vacant for a few months with multiple rent drops
     
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  3. samiam

    samiam Well-Known Member

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    is your ip a house or a unit?
    rentals are pretty soft especially in area with lots of new units
     
  4. BCR

    BCR Well-Known Member

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    My IP is not in East Brisbane further out at Jamboree Heights. It was leased 3 days post settlement.

    I am assuming unit?
     
  5. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    @melbourne171... if you get stuck, then try Airbnbing it. Just do a check to see how full the calendars are of the surrounding properties. If you rent out 4 nights out of 7 you'd probably get the equivalent to cover your normal rent or better.

    There's often last minute/next week type bookers and hosts could list on other platforms too.
    You'd need to furnish it, but that isn't over the top tricky. Gumtree is your friend.
     
  6. Azazel

    Azazel Well-Known Member

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    Didn't have any problem renting out a house in far East Brisbane.
    A fair bit further than 5km out though.
     
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  7. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    My observations: renovated, well-presented houses go in a flash, otherwise rental market is a bit soft.
     
  8. willair

    willair Well-Known Member Premium Member

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    One we have was vacant for about 6 week,new roof carpets paint,and that was just over six weeks ago then was leased,i have had to issue 2 Unremedied breach orders so far no rent has been paid so far,and will have to post off a notice to leave forms 12a 13 today,top day in the free world,and i have watched properties in the same area sit for months vacant..
     
  9. DiligentPM

    DiligentPM Well-Known Member Business Member

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    We have just received four applications (very strong) from our first Open Home for a house in Balmoral - provided it is priced to market and well presented properties go quickly
     
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  10. Big Will

    Big Will Well-Known Member

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    Did you inspect the property before you bought it?

    Jamboree Heights is not 5km from CBD and it isn't East....

    Jamboree Heights, Queensland - Wikipedia, the free encyclopedia

    Jamboree Heights is a suburb of Brisbane, Australia. It is 14 km (9 mi) south west of the CBD

    I don't know the area to well but is your house competitively priced?

    There is 16 properties on the market ranging from $380 pw to $670, however most are 400-500 pw.

    Three of the rental properties do not have addresses, I cant speak from a tenants perspective but not having it listed for sale is a turn off for buyers and they move on and I would suspect it would be even more of a turn off for tenants.

    How many people are going through the property at the opens?
    Of that how many are taking applications?
    What are the feedback from the people going through?

    Also with the 16 houses there is only actually 15 houses, if this one is yours you might want to consider removing one of the ads as everyone is going to go to Ray White.

    upload_2016-9-20_14-44-18.png
     
  11. Ed Barton

    Ed Barton Well-Known Member

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  12. melbourne171

    melbourne171 Well-Known Member

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    Hopefully, it will be ok. Just listed for rent within 2 weeks. There are some enquries already.
     
  13. mikey7

    mikey7 Well-Known Member

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    I got 2 IPs north of brisbane city.
    First one got a tenant 2 days after being listed.
    The second was on for 2 weeks pre settlement. Settlement is tomorrow, tenants move in on Friday.

    I did get an email from PM today saying the market is tough at the moment with oversupply and under demand. But im confident in the locations they both are, and both are presented well enough.
     
  14. Big Will

    Big Will Well-Known Member

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    Huh?

    What part do you not understand?
     
  15. Foreshadow

    Foreshadow Active Member

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    You seem to have mis-read Will. The OP didnt say he was in Jamboree Heights, that was BCR.
     
  16. BCR

    BCR Well-Known Member

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    @Big Will, OP didn't mention suburb just that property is 5km east Brisbane.

    My IP is in Jamboree heights which I just used as a comparison for a recent lease

    cheers
     
  17. Big Will

    Big Will Well-Known Member

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    Ah makes sense, I miss read.
     
  18. Ed Barton

    Ed Barton Well-Known Member

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    I withdraw my comments your honour.

    I miss read your post. I have a mild case of lysdexia and thought you were saying JH is east.
     
  19. blakroz13

    blakroz13 New Member

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    First time poster, long time lurker. Our recent purchase sat on the market for about 6 weeks before we got the right applicant through. Declined 2 within the first week due to dodgy income information provide and seemed like the 'unsavory' types (as advised by the PM) and went through a bit of a patch of a handful of people viewing at each open home but no applications. Dropped the rent a little and pretty much straight away got triple the amount of people through the door looking and eventually got 4 applications before we decided on the right tenant.
    This property technically isn't Brisbane though and is located on the Southside.
    We took away from this that we had the rent listed a fraction too high and possibly shouldn't have used a PM that isn't located in the area (we used the same PM as our other property which is located several suburbs away) - Rookie errors perhaps...
     
  20. MyPropertyPro

    MyPropertyPro SE Qld Property Management & Investor Services Business Member

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    Generally, if a property is presented well and is priced right you will get people through the door and applications. Your PM should also be checking the vacancy rate as it is a factor but that is a lagging indicator on pricing i.e you can control it directly with proactive price adjustments. I would always suggest having your PM complete a CMA and starting at the top end of the expected price range with professional photos and a highlight listing on re.com.au - they will be able to tell very quickly whether there is a pricing problem depending on enquiry levels as if it's marketed correctly, it won't be a problem there.

    Leave it until the first open and/or any private inspections for the first 7 days to gauge feedback and ensure your PM is listening to that feed back. Then make a price adjustment if necessary. I personally then drop the rent by $5 every few days (depending on market) until you hit the sweet spot. There is absolutely no point in reaching for rent you want when the market isn't paying it. Far better to take a $5, 10, 15 a week drop and have it vacant for 1-2 weeks than leave the rent and hope someone will apply and have it vacant for 6 weeks - the maths doesn't work. I've written an article on this exact topic on our website for those who would like to read.

    Regarding the local PM argument - good leasing and management is a data driven, professional approach and if your PM is an excellent PM, their location won't matter (within reason of course). In my opinion and experience, a PM who claims knowing the local area is a factor in leasing the property is the same as an investor who only wants to invest in their local area claiming they know it also when in reality they've never studied the data from a micro or macro economic perspective and only know the local parks and shops. This would have been more of a factor in days gone by, but times have changed.

    We constantly have transfers from on-site managers - who are as local as you can get - who provide an abominable service to their clients. The main thing you need is good service, communication and accountability. Any inefficiencies due to geographical location are the problem of the agency and provided they are able to complete related tasks such as entry for trades, key related issues, private inspections, routines etc, then it almost wouldn't factor into my decision as an investor. Obviously there are practical limits however.

    I have properties on the south side and broadly, 6 weeks of vacancy is far, far too long for the majority of suburbs down that way if the process is conducted correctly.

    All the best with your new tenants!

    - Andrew