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Mildura Rental market

Discussion in 'Property Management' started by Shawn, 24th Nov, 2015.

  1. Shawn

    Shawn Well-Known Member

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    Hi all,

    @ww2_nut This one is mainly for you and others in Mildura or who have experience in the Mildura market.

    My tenant recently lost his job and left the property at the start of November. The property has been vacant since then. I have followed up with the agents every Friday and I understand they have shown 10 groups of people through the house.

    The rent was quite high and I dropped it by $20pw 2 weeks ago, but alas this has not made much of a change to the number of applications for the property, which has come in at a big fat zero so far.

    A bit about the property :

    Set on 300sqm, 2km away from the City Centre very near the aerodrome in a desirable location, it's a 3bedroom house with 2 bathrooms and 1 garage (drive-thru). It does not have any grass to mow (synthetic in both front & backyard) and it has ducted a/c throughout.

    Vacancy rate in Mildura is hovering around the 1% mark but this property has been on the market for 5-6 weeks now with no takers.

    Should I be worried?
     
  2. JacM

    JacM VIC Buyer's Agent Business Member

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    Hi Shawn

    In the uber regionals, 2km from town is a lot. That said, with a vacancy rate of 1%, it should surely have rented before the 5-6 week mark. It does beg the question of whether you are with the right property managers.
     
  3. Fargo

    Fargo Well-Known Member

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    The aerodome is 8kms from the CBD, Is it near the old aerodrome ovals? Is it close to a bus stop with an adequate bus service. It sounds like a 3 bed 2 bath town house which are rare and usually lease quickly.
     
  4. Shawn

    Shawn Well-Known Member

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    Your right!

    The property is near the old aerodrome ovals off of Eighth Street.

    It is indeed a 3 bed 2 bath town house but it's got a slightly weird layout with one bedroom being next to the garage and the rest being on the other side of the house (including bathrooms) with living/dining/kitchen in the centre.
     
  5. norwoodman

    norwoodman Well-Known Member

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    In a regional market such as Mildura, does public transport even come anywhere near the consideration that you'd get in Melbourne? The renter preferences between the locations would be different.
     
  6. Bayview

    Bayview Well-Known Member

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    Mildura is a pretty decent sized town, so I would assume that an IP close to the bus stops and shops etc would be in demand.

    Country towns are mostly yer blue-collar demo...less wages and so forth.

    Something higher end and not as close to the action would struggle a bit more I'd say - smaller rental pool for the higher end product, and less demand for the location.
     
  7. Fargo

    Fargo Well-Known Member

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    Havent you had any feed back from your agent and prospective tenants? Do you have a housing commission house for a neighbor?
     
  8. Shawn

    Shawn Well-Known Member

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    My agent says that tenants are walking through but no one is making an application. :(
    As far as I am aware there is 0% housing commission in the area.

    Not far from Brodie Close though but far enough not to affect it.
     
  9. Bayview

    Bayview Well-Known Member

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    If they are not making an application, it says to me that they deem the value not to be there for the money.
     
  10. ww2_nut

    ww2_nut Member

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    The property is in a good area. From all the PM's that I talk to they all seem to be telling me they have no rental properties available but have excess tenants looking. I was talking to my PM and these were her words only 2 weeks ago. Just got back from a 2 week holiday so things may have changed in those 2 weeks, but I doubt it. My tenants just signed a new 12 month lease. No increase on rent, but happy to keep it at that as they are great tenants. (Removalist company who only camp there 2 nights of the week and keep the place immaculate and always pay on time)
     
  11. Shawn

    Shawn Well-Known Member

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    Thanks @ww2_nut I think it may just be time to switch PMs if that is the case.
     
  12. JacM

    JacM VIC Buyer's Agent Business Member

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    With such a low vacancy rate in the area, it should lease even if the price is a little high or the location not overly ideal So it does make me wonder precisely who has been opening your house for inspection ... the actual experienced property manager, or the young new recruit into the company? How proactive are they being in asking the prospective tenants about their keen-ness? Are they providing an application form and explaining the different ways the tenant can submit the application? What is the office process when someone rings? It could just be that there is a person in the office that is lazy and not passing on messages or following up on enquiry.
     
  13. ww2_nut

    ww2_nut Member

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    I would change PM'S if I were you. In my opinion PRD are not the best property managers. I would be using either Collie & Tierney or Barry Plant.
    Susan Gray at C&T is good. Tell her I refered you and she may do you a deal
     
  14. JacM

    JacM VIC Buyer's Agent Business Member

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    I can see how that conversation will pan out... a bloke called ww2_nut that I met online told me to ring you.... o_O hahaha. Best share your name via PM or other means.
     
  15. Shawn

    Shawn Well-Known Member

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    What if I already know his name @JacM

    He did know who my PMs were haha
     
  16. JacM

    JacM VIC Buyer's Agent Business Member

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    ahhhh well that will indeed make it easier :p
     
  17. ww2_nut

    ww2_nut Member

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    HAHA. I showed Shawn around Mildura :)
     
  18. Fargo

    Fargo Well-Known Member

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    I inherited Susan Gray as a manager with a property I bought, I was less than impressed with her, I found her very arrogant, she thought she owned my property told me I had to get insurance that I didn't need, which was covered by a Body Corp set purely to get cheap insurance. She didn't know the property she was managing had a Body Corp and insisted it didn't. She would probably be good and firm with difficult tenants When the tenants lease finished I wanted to increase the rent from $250 she said I wouldn't get more than $270/week . So she was sacked and the day after the original tenant moved out the property had new tenants move in paying $360/week. I found she didn't have a good understanding of the rental market, or the demand in certain locations or know the contacts to get a premium. Barry Plant is notorious for touching up photo s so much that some people wont bother looking at their properties I wont as a buyer waste my time with them. One other appalling property manager that I sacked went and worked with them after I sacked her, so Barry Plant cant be too fussy about who they employ.
     
  19. JacM

    JacM VIC Buyer's Agent Business Member

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    Wow after all that difficulty, who are you using now @Fargo ?
     
  20. Fargo

    Fargo Well-Known Member

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    I self manage all my Mildura properties, bar one. It is easier than managing the manager and the entitled whinging tenants they sign up I have sussed some out not managers and got appraisals by them. The one that I found who seemed the most professional, knowledgeable and accurate on achievable rent and the best understanding of the rental market was Pam Carter of Burns & Co. She was very helpful and volunteered information on what organizations to approach to get the top rent for my particular type of property. but I haven't engaged her. I have Louise Kerr from Ray White managing one at the moment, who is OK in the sense that you could do a lot worse and perhaps a little better.