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

Discussion in 'Property Management' started by joe2030, 27th Nov, 2015.

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  1. joe2030

    joe2030 Well-Known Member

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    The rental manager told its just the time of year that not many people are looking, nothing wrong with features of the house and the price. She also suggested drop the price to secure a tenant then do a 6 month lease.
     
  2. joe2030

    joe2030 Well-Known Member

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    It seems dropping the rent dramatically or waiting until mid of Jan are my options. I thought there was still good demand when I advertised on end of Nov.
     
  3. D.T.

    D.T. Specialist Property Manager Business Member

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    Yep, cheaper and 6 months is good idea. It means that you don't get in exactly the same predicament again this time next year. Whether you can increase it after those 6 months depends on which state you're in - refer Tenancy Tip Thursday - Rent Raising Requirements
     
  4. Big Will

    Big Will Well-Known Member

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    This is exactly what I and others had suggested, seems like we are all on the same page.

    Good luck
     
  5. 7smurfs

    7smurfs Member

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    I dropped mine from $450 to $425 to $400 per/week

    At $400 p/w the amount of interest skyrocketed and suddenly I had applications without even seeing the property. So to me, it's all in the pricing if you want it to lease quickly in late Nov/Dec

    Did a 6 month contract and will raise it back up thereafter
     
  6. joe2030

    joe2030 Well-Known Member

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    I have learned at least I should do a 6 month lease. I regret I should've set the low rent 3 week ago.
     
  7. joe2030

    joe2030 Well-Known Member

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    My rental manager told me it is quiet for enquiries for all properties. I have the only one person who showed interest and coming for an inspection tomorrow.

    Now my question/concern is how much should I drop in order to get interest skyrocketed.
     
  8. joe2030

    joe2030 Well-Known Member

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    I searched in domain.com.au by House, 3 bedroom/1 bath /1 parking from $300 - $350, then hit 11 found. It seem all listings are also reducing, I am the top 3 now. Should I drop to $300?

    $340 (2)
    $330 (1) <- Here
    $325 (1)
    $320 (2)
    $315 (1) but townhouse
    $310 (2)
    $300 (2) but townhouse
     
  9. Big Will

    Big Will Well-Known Member

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    I am not sure what the (#) means.

    Depends on comparable properites is the price you should put. However as this is probably the last weekend to secure a tenant you might look at keeping it on the lower side of what you feel is correct and do 6 months.

    If the above is all houses that are comparable you would look for either $310 (depends on how your compares) or $300.
     
  10. Observer

    Observer Well-Known Member

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    The rental market is quite soft this time of year. We're had to advertise 1 week rent free and slightly drop the price to get an application. You may consider doing the same.
     
  11. D.T.

    D.T. Specialist Property Manager Business Member

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    Looks like its quantity of properties on at those price points
     
  12. joe2030

    joe2030 Well-Known Member

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    Hi Bill Will, observer,
    D.T. is right that it is number of properties. Some of properties seems lower condition from my perspective but I'm not sure what features people are looking. E.g. huge space, nice patio, security. The bottom line may be $310 in this Dec. I see one agent offering one week rent free. I will discuss with my RM. Thx.
     
  13. D.T.

    D.T. Specialist Property Manager Business Member

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    If you want someone this side of Xmas you'll prob need to under cut the others. I'd recommend a 6 month lease so that you don't get in the same predicament this time next year.
     
  14. wylie

    wylie Moderator Staff Member

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    This is what I did too. As soon as I lowered to $400 I clearly caught those searching with $400 upper limit and it rented quickly. I'd had some interest at $420 but only one interested enough to follow through and want to see it.

    In this area, and surrounding areas (if they tick that box) there is a lot on offer around $400, just under and just over, so better to get $400 (even if it is worth a little more) than nothing. We just have to creep it up again.

    I've made this first lease six months and the one after I will make seven months (with a $10 increase) to take us to mid-January, which is where we try to have all leases fall due.
     
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  15. wylie

    wylie Moderator Staff Member

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    I also ensured my advert title listed the positives... air-con, remote garaging, deck... things some of the others didn't have that make mine more attractive.
     
  16. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Allow pets ... Many pet lovers out there prepared to pay more rent.

    Security grilles on windows, security doors ,

    If desperate you can allow 1 week free rent on a 12 month lease.
     
  17. wylie

    wylie Moderator Staff Member

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    This always perplexes me. We have always allowed pets, but have never been inundated by people who have pets and prepared to jump on our places quickly due to that.

    However, just this past week or so, we've had pet owners apply for the house we've just let. New tenant has a dog. Everyone else who replied had a dog. Most of them had staffies? What is it with staffies? Must be flavour of the month.

    So, maybe the fact all enquiries were from people with dogs maybe that is because we say "pet friendly" but nobody seems to make any sort of big deal out of it, or even mention anything like "we have had so much trouble finding a place that will allow a dog"... and for me for many years doing this, it has always been the same.
     
  18. joe2030

    joe2030 Well-Known Member

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    Hi wylie, thx for sharing your story.
     
  19. joe2030

    joe2030 Well-Known Member

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    Finally, I've got a new tenant! One young couple came for inspection on last week then submitted application yesterday. The young couple was willing to do a 12 month lease so we agreed to do a 13 month lease contract ($330 pw), which ends on the end of Jan 2017. This idea came from the rental manger that it is typically the busiest time of year. I appreciate all advises, suggestions from everyone here.
     
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  20. D.T.

    D.T. Specialist Property Manager Business Member

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    Sounds great on all fronts, well done
     
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