Leasing out Half House

Discussion in 'Property Market Economics' started by Ron, 22nd Aug, 2020.

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  1. Ron

    Ron Well-Known Member

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    Hi all,

    Having trouble leasing out my 'half house' in Liverpool, Sydney. Not exactly a half house but its one big house with a unit in front, the big 4 bedder behind it and a single bed granny downstairs. All fully contained with own kitchens, laundry, bath etc, private access for each, separate letterboxes, elec meters etc. All complianced and separated, fire wall, egress etc.

    Had the 4 bed for $540 inc water n gas for 3-4weeks, finally went with agent and dropped to $510 this week. Had a huge number of people so far mostly from gumtree, also from Domain, Real Estate. Most time wasters, massive families like 6-7+, flakey people who say they will apply etc then get approved elsewhere. Lots people who don't like agents and got something to hide probably. Today at new price $510via reputable agent didnt have anyone show up. The property has massive rooms, new paint, super clean, big kitchen, nice part of the area and close to all amenities, good advert etc. Agent suggested to drop price further to 490 'as its a testing game' to determine sweet spot since its a unique property ie 'half house' or part of house. Getting frustrated, what do you suggest?

    Having problems with granny too @$310 a week, lots of interest mostly from young or troubled people, people divorcing etc but yet to be secured.

    Please advise, many thanks in advance..
     
  2. willair

    willair Well-Known Member Premium Member

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    Maybe you could just rent the back section out and move into the front unit but i don't know the area..
     
  3. Ron

    Ron Well-Known Member

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    This is what I have done, I live in the front unit..
     
  4. Ron

    Ron Well-Known Member

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    Any advice please anybody?
     
  5. MB18

    MB18 Well-Known Member

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    I do not know Liverpool in the slightest but the property sounds somewhat different.

    Consider your ideal tenant for the four bedroom part for example. I assume it is a family with kids. The problem you have is that family is essentially being asked to live amongst your unit and above a granny flat. They probably have ideas of a 4 bed standalone suburban house instead.

    Same goes with the granny flat. Can you see your ideal tenant wanting to live underneath a family with kids behind another unit.

    To deal with the peculiarities of the property you will need to compete on price which then lends itself to attracting tenants who are motivated primarily on price - and it sounds as though you are meeting a few of those.

    You will have to be your own judge of character but every other person seems to be getting divorced, and we were all once young so I wouldnt hastily discount them if they otherwise square up.
    At the end of the day the well paid, stable, and professional tenant you might desire will probably just be interested in something completely different to what you are trying to rent out.
     
  6. Ron

    Ron Well-Known Member

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    Thanks for the tips, demand for the granny has been pretty high lately and have just secured a tenant. The house is the tricky one, I guess its most attractive feature will have to be a low price because as you say its different, its drawbacks are theres a unit in front separated by a wall, a granny downstairs and no garage(that belongs to the unit) , plus the laundry is in a shed at the back. Saying that all the rooms including kitchen is massive, newly painted, new curtains, tiled floor etc. The pool of tenants for this type of house is unfortunately not large. I have dropped $50 off initial price and listed at $490/wk. How should I advertise this - should I call it 'back of house', 'part house' etc?
     
  7. MB18

    MB18 Well-Known Member

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    I'm not sure what would be most effective as it's not something I've ever considered renting myself (I'm a city apartment type) but I would probably just mention something along the lines of the landlord resides in an adjacent unit (if I remeber the story correctly).

    If nothing else it will filter out the more unscrupulous if they know the landlord is onsite. I dont know the area but I guess check out what else is for rent to gauge the competion and any beneficial points of difference if you havnt already.

    I had a landlord live a few doors down and the advert at the time mentioned lawns an gardens taken care of by property owner which was a point of difference.
    I suspect it was more just a way of keeping a close eye on the place, but that was fine by me.
     
  8. Illusivedreams

    Illusivedreams Well-Known Member

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    I just think you are over analyzing a bit.

    When a property dosent lease.

    2 factors agent didnt do a good enough job presenting and showing off the property
    Or your price is too high. More so its the latter.

    When I have a property not leasing for a while i call my agent and a few others and ask the question. Is the asking price too high.

    Although having spoken to you I believe The price you are asking is simply too high and I would not rent your house. If lease only arrangement the agent may also not be working as hard as they can knowing they will NOT manage this property. Remember every one has to make a dime.

    You have a house but reality its more like a townhouse/unit because you have a Granny flat and another dwelling ll on the one pie. A huge loss of privacy .


    Why would i lease your property headache of living next to the owner for simillar money i can simply rent a free standing hosue with out the BS.
    https://www.realestate.com.au/property-house-nsw-liverpool-429968758

    $500 done no landlord neighbor no GF no strange side entrance.


    To answer your question. You are trying to get the maximum out of your land but in so cant charge the same rent as free standing home in the area.

    Cant have cake and eat it too.

    Speak to the agent they will give you advice about price and why it has not leased.


    Lastly i know my target market in areas i own. Do you? Are you expecting a tenant which is not realistic in your area?Or a price which does not meet the market?
     
  9. Ron

    Ron Well-Known Member

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    Thanks for the insight. In answer to your questions the agent suggested a price drop of 500/wk from 540, I dropped it to $490 this Tuesday as 490 sounds 'far cheaper' psychologically than 500. Remember its a huge 4 bedder with water and gas included in the nicer parkland side of Liverpool. Just like 199 vs 200 can be the deciding point, that extra dollar makes it seem a lot cheaper than it is. I have had previous agents tell me the 480-500 mark should do it. Well my agent is not having much luck currently. They told me they have never leased this type of house before and its a test to see what it will go for. Doesn't sound the way to win customers but I should have got the hint initially when they said they could 'try that figure and see how it goes'.

    I have had many comments from prospects that the house is super clean and beautiful, very big rooms and kitchen, nice street etc, and also the drawbacks of having the unit in front, side entrance, no garage etc. To me the only way I can compete with these drawbacks is to make the price really attractive not to resist. Have had offers few weeks ago of 480-500, I was too amateur to accept then, now I would. These were gumtree tenants so not the best, but again some are okay I know; have also had large families wanting it at initial asking price of $540, again gumtree and these were too large 6-7 people families sometimes with pets. Might as well get a farm ..

    Do you still think $490 incl water and gas is too high? Also should I advertise as 'dual occupancy' or 'like a duplex' or 'large unit in house' as thats the closest to what it is.
     
  10. Melbourne_guy

    Melbourne_guy Well-Known Member

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    Estate agents are masters at spinning the English language without blushing when it comes to advertising property. This should be bread and butter for a good agent/agency

    Sounds like it is a headache every time a lease terminates. Have you considered making some modifications to develop it into something more 'user friendly' and 'leasable' or selling to a developer to do the development and you pocketing the reward. There is a lot to be commended for having property that requires less stress and 'hands-on' involvement.
     
  11. MB18

    MB18 Well-Known Member

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    The inclusion of water and gas certainly has some value (perhaps equating to a comparable rent of say $470pw), unfortunately most tennats will merely see the headline price of $490 and compare it to every other property in that price range without really giving any consideration to the fact those utilities are included. I would, but I'm not most people.
     

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