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Just had to drop our rent in Toowong, Brisbane

Discussion in 'Property Management' started by VeronicaR, 22nd Sep, 2016.

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  1. VeronicaR

    VeronicaR Well-Known Member

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    This is more of a random anecdote... take from it what you will. Our 2Bed house in Toowong has been heading south in terms of rent over the last few years, despite painting interior, installing aircons, etc. (it's a 1920s Queenslander).

    3 years ago before these improvements it was rented at $400 a week. Then we made the improvements and had to release it at $395 - now, who knows!

    We just tried to offer our tenants a new 6month lease and they asked for a rent decrease. My agent tells me she'd reccommend we drop it if we put it back on the market anyway, so it's a no brainer. I only hope our tenants actually accept the lease at the reduced rent!

    Given our house is a 2 bedroom it's probably competing against a lot of the units in the area. Are others having similar experiences?
     
  2. MyPropertyPro

    MyPropertyPro SE Qld Property Management & Investor Services Business Member

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    Hi VeronicaR

    My experience from working in the Toowong area is that it really does peak around University semesters - more than other suburbs given the proximity to the University of QLD. January and February seem to be by far the months where properties in Toowong are in high demand.

    It is for this reason that most agents will try and have leases expire around January/February in case a tenant vacates. Leases don't always have to be 6 or 12 months - for example your agent could have suggested a reduced rate (to keep tenants) for 4 months to bring it to the "peak" time. That way if they do move - you would most likely get a higher rent for it again if leased in January.

    If you want to send me a private message with the address I would be happy to look at the details and offer my opinion for an appraisal - always to good to get a second opinion! In saying that yes rents are dropping in certain Brisbane suburbs - some more than others.
    Jodi
     
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  3. Ed Barton

    Ed Barton Well-Known Member

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    I'd much rather a cottage than a unit. So for me a cottage would be much more preferable to a unit. Years ago I rented a two-bed cottage that was a lot more than comparable units. Unless it's a dump $400pw seems very reasonable.

    Perhaps you could try listing it in the unit section on websites. Perhaps people looking for a 2 bed don't see your place as they assume there are no 2 bed houses and just search under unit?
     
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  4. VeronicaR

    VeronicaR Well-Known Member

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    Thanks Jodi, since we're trying to retain our tenants at this stage I probably don't need a second opinion, but if they decide to leave anyway I will be in touch :).

    Thanks Ed, it is in pretty original condition other than a few touch ups such as the aircons, painting and flatpack kitchen. It's also on a very busy road... it was definitely a good buy for us for other reasons though :).

    We'll definitely look at our options if it ends up vacant. I just want to avoid that altogether!
     
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  5. vbplease

    vbplease Well-Known Member

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    I thought this may have been the case. $400/wk sounds very cheap for Toowong otherwise.

    Can you look at investing in a larger privacy fence or screening with landscaping? Windows double glazed? This may help in increasing the appeal and up the rent in future..
     
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  6. VeronicaR

    VeronicaR Well-Known Member

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    Good thinking - we have had 6ft fences installed which helps somewhat. It's a double block and we eventually plan to split the block and do a whole heap of renovations (including insulation improvements). My partner just left his job and is looking for something new so we've had to put that off for a little while. Right now we just don't want to deal with a vacancy - but if we have to it won't be the end of the world.
     
  7. Bran

    Bran Well-Known Member

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    Maybe look at doing this sooner, is this an option?
     
  8. VeronicaR

    VeronicaR Well-Known Member

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    Unfortunately I don't earn the $$ to service it. That's why we're offering another 6 months (we had originally planned to do the renos now)
     
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  9. DiligentPM

    DiligentPM Well-Known Member Business Member

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    Stick to your agent through this critical marketing period as this is in your best interest - great advice to take on board to discuss with your PM as you strategise together
     
  10. Pumpkin

    Pumpkin Well-Known Member

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    I would suggest you consider allowing pets. That is the advantage you have versus Units.
     
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  11. VeronicaR

    VeronicaR Well-Known Member

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    I agree and we do allow pets... we have four pets ourselves, would be strange if we didn't allow them :).