How to find a good tenant with a good rental price quickly?

After completing the full renovation, I have started advertising for rent last Friday by a rental manager with professional photos. The house has a 3 br/1 bath/1 garage with new kitchen/bathroom/air con/paint in the South East QLD

According to the SQM research, the ave asking rental for 3br is $363 and the vacancy rate is 2.6%. The rental manager thinks this house can be rent between $320-$350. I started $350 but only some enquires for a week so I reduced $340 for waiting more enquires.

I would like to get a good quality tenant within a week. ( I have spent $$k for reno....) Generally, what strategy can I take? Should I keep decreasing the rent until finding one?

 

1.Good pics.
2.How does this compare to what else is available? Agent knowledge?
3.Is it the best in the market for this price point? " "
4.What is the point of difference/ value compared to all the others?
I hope this helps

 

What did the PM said about $340? Is this too high? Is the waiting period still within he normal range?

Change some pics if the listing been there for too long. Is the property comparable to others?

 

Don't go by SQM, that's just a lagging average. Review what's recently been rented and what's currently on the market.

Also consider that it's Christmas time and tenants ready to relocate aren't in huge supply.

If you want someone quickly, go for the lower end of the price range. Each week vacant will pay for itself otherwise.

Getting lots of inquiries comes down to how well its priced and how well its marketed.

However, converting those inquiries into tenant applications is a matter of how efficiently they're handled. We use an online booking system for tenants to book into open inspections, we then have all their details and can follow up with them all much simpler.

Then, out of those applicants, hopefully 1 is suitable to you

 

Ensure it is sitting on page one of re.com.au
Feature ad - or greater
Page views should be high
Schedule open inspections
Ensure that every enquiry is acted on whether it's after hours, weekends or whatever - need a proactive property manager.

Start advertising early, the best time to advertise is when someone is already in there paying the rent.

 

Ask them to pick a figure, not a range based on their other properties they are looking after. They should tell you where it sits

 

She is suggesting dropping the rent to $330/$340 to be comparable to the other current available.

 

Have you looked online yourself?
If you want someone in, 330 might be your number.
Saved you a few weeks if you were to go 350, 340, 330 each week

 

Thank you everyone,

1. All photos are taken by a professional so It looks more attractive then others.
2. Searched RE.com.au in the area, there are 25 houses advertised between $300pw and $350pw.
3. Most houses are in average condition. My house has a brand new modern kitchen and bathroom so better than others. I think the competitive price $320-$330.

Hmm.

 

Sounds great Joe - all the best x

 

Yeah, that's right. I will give $330 the rental manger in hand while advertising $340 to see if anyone wants if $330.

 

Thanks, Xenia.

 

Thanks, D.T. I do more research the current rental by RE.com.au or Domain.com.au then discuss with the rental manager. Actually, I know it is not good timing before Xmas but the tenant left last month with a very bad condition so I was required to repair and renovate for 3 weeks. so I couldn't choose the timing....

 

Its a turn of for people when their expectation are build up, by enhanced photos only to be disappointed to find the property is not what they were expecting. It is better to let them be pleasantly surprised than annoyed if you want them to be keen to sign a lease, and you may be setting yourself up with demanding tenants. Perhaps you need another agent, the agent should know exactly what price will fill the property to avoid vacancy, if it is little on the low side the rent can be increased when its due for renewal They wont move unless they can get something significantly cheaper. Agents who put up fake photos get a reputation and some people wont waste time looking at their properties.

 

I'll keep that in mind. Too much enhanced photos will disappoint people coming to inspection. I remember when i inspected the houses to buy, I was always disappointed with one of agent's photos, which enhanced lots with shiny bright.

At this time, the pro photos for this house seems fair as I compared to my normal photos.

 

I confirm with the rental manger that 3 people showed interests and are coming for inspection today and tomorrow. I'll wait for their feedback.

 

I would question the rent range... and I would not ask for the higher end if my concern was about potential vacancies.

 

Quickest way to find a tenant is to drop the price.

Chasing top dollar this close to Christmas is always going to be difficult to get. Reason being land lords are wanting to rent their property before Christmas but there is less demand as tenants are not really looking.

So less demand but same supply (or more) means prices have to come down.

Remember it isn't how much rent you get per week that count but rather how much rent in a year you get.

E.g. You cannot rent the place for $340 until Mid Jan (16th Jan) next year, I picked this date as it is likely when tenants might start looking. This is seven weeks and including the one week (+ however many more weeks) that you have already missed out on in rent.

However if you can rent it now at $320 ($20 p/w less), without increasing either rent it would take you 128 weeks (MORE THAN 2 YEARS!) before the $340 p.w would be a better solution.

However once you got someone in you can try and raise to bring it back to $330/340, you also might consider doing a 6 month lease to keep lease the lease renewal away from Christmas.

 

At this time of the year leading up to Christmas is always a bit difficult. After January, it usually picks up.

How good is your property manager? If they have a large database, tenants who move out of other properties can be guided to yours. Work with your PM as best as you can to get it leased.

I would say drop the rent, the extra rent you get over the Christmas period will more than cover the $10-20 drop. When the lease comes up for renewal, bump it up then.

Cheers,
Michael

 

It wasn't successful last weekend with some people having inspection. I dropped the rent $330 as the rental manager suggested $335.