Is this rental priced correctly? (Parkwood, WA)

Shout-out to all those who know the Parkwood (WA) area and surrounds: do you think this rental property is priced correctly at $390pw?

34 Villiers Way Parkwood WA 6147 - House for Rent #424208202 - realestate.com.au

Full disclosure: it is my property (well, it will be when it settles in two weeks )!

Yes, that is what I’m paying my PM for and yes they have given me a full briefing and evaluation, but the fact is there are not that many recent comparables in the area and we have rushed to get it advertised asap so haven’t exactly poured over the evidence for days.

We have arrived at the $390 figure for initial listing but I’m keen to hear people’s thoughts as I’d like to get it as close to fair market price as early as possible.

Thanks all!

 

I'd have a look at the rental listings and find equivalent properties in that area. It's well presented, spacious, but not exceptional, or new. It's at the higher end for that type of property in that area (given the median of around 310pw for a 3 bed). You might get 390 but best do your own research.

 

My gut says more $360-380pw.

How do you plan to tackle the potential loss of backgarden in the future? See if they want a discount and keep them and if they don't then end lease and find new one to take on reduced space?

 

I am with Westminster, around the $360+ range. About 6 properties including yours in Parkwood with 2 bathrooms and 3+ bedrooms. Lowest asking is $340

 

What loss of backyard?
Rental ad says “hugebackyard to run around in” therefore all included in the lease.
Marg

 

I thought through a few couple (such as fencing off yard now to avoid disappointment/ renegotiation later) and settled on leasing the whole property for the first 12 month lease, making any interested party aware that the yard may go after the first contract, prior to them signing up. Lease and rent will then be renegotiated at the 12 month mark.

FYI for those unaware, I am subdividing the block and building on the backyard (but not straight away).

 

Refer above. TBH I think the agent shouldn’t have place so much emphasis on the yard (given the ideal tenant will be someone who isn’t too emotionally attached to the yard), but I didn’t get a chance to review before it went live.

 

Then it won’t be just the loss of the back yard, but also the noise, dust and disruption of a building site very close by.
Marg

 

If you are looking to build at the back in at least 12m time you may as well leave the backyard as it is. The ideal tenant in the next 12m is one that will enjoy and maintain the backyard (and pay for the privilege). Whereas the ideal tenant during the build is one that’s happy with building, dust and construction noise, who expects a discount.

 

I have done this in Perth. We told the tenant when they moved in we would be building. They were happy the yard was being split and did not expect a discount. The tenant lodged a couple of complaints during the build which we took up with the builder. Everything was sorted out quickly and the tenant has renewed their lease. I don't imagine many tenants would be that accomodating

 

Not in this rental market ...

 

Perfect. I had very accomodating tenants for my last subdivision. They were extremely relaxed guys so no complaints at all and in return I didn’t hassle them at rental inspections for not being quite as clean and tidy as I would have liked.

I’m not expecting the same this time, but we’ll see what happens. I have factored in a reduction in rent when the contract is renewed but if we can avoid that (or provide some other compromise) then all the better.

 

Incorrect. The build is not quite at handover yet. Commenced in January last year, so very specifically is this rental market or I would not have mentioned it

 

Like you say though, a rare person would be so accommodating under those circumstances.

 

True but it only takes one

 

Indeed it does It wouldn't be me!

 

The very first lease signed early last year with this clause?

 

More or less. There was nothing written into the lease. It was a verbal agreement with the tenant. The tenant renewed their lease around the time the house being built reached lockup.

 

Update: advertised for six days now and we have had three expressions of interest at $390pw. Not terrible in the current market. Viewing early next week so we'll see what eventuates. Given there is interest at this price and the property still hasn't settled i'm keeping the price steady for another week.

 

That's great! I would have sworn that price was over. It's good you are getting interest at that price