Penrith Vacancy Rates

Folks,
I have a dual occupancy property in penrith, nsw and have had very limited interest (3+ weeks and still no applications)

any property managers or investors in this region who can confirm the market situation for this area

Are the vacancy rates increasing

Thanks

 

Granny flat?
Check out the competition on re.com.au and what they're paying. There may have been to many built in the last couple of years

 

Havent had a vacancy on my western syd stuff in years (longest tenant has been in the place for 11 years), but I do know my PM has been pushing rents upwards again after 2 years of stagnation due to the boom/excess stock. So vacancy cant be that bad.

 

Broadly speaking, over the Penrith region vacancy rates are at a level which they haven't really been for the last 10 years. They are higher than previously but I wouldn't consider them high to actually be having an effect on the rental prices at the moment.

However because of this, it can take a little longer to rent some properties due to a wider selection of choice that the prospective tenants have.

Your situation sounds like you have priced the property incorrectly. But one would need more information to accurately determine what the exact issue is. Eg. Maybe people do not like something about the property? They could also be finding better ones for the same price? Are there many people actually inspecting?

Some real examples for you. I leased a 3 bedroom house in South Penrith a couple of weeks ago without any issues and we had many applicants apply. It was one of the better houses on the market though.

Now another property that I've got on the market in Penrith at the moment has had 19 people inspect over 3 inspections. That is a very good amount of people indicating that there are enough potential tenants there and the price is very competitive. However the main feedback with the property is that the bedrooms are small and therefore this has held the property back.

A lot of times, prospective tenants are looking but can still wait before committing to a property. So they have time to look around and find a property that is suitable for them, and when they find a good property most of them will apply for it.

 

Thanks guys, in my case the feedback is that the 2 units are too close to each other. In terms of pricing it right my agent thinks we are in the ballpark. I must admit that the bathroom and the kitchen are not in a smick state

 

You need to figure out if you are getting enough people in and maybe drop the price to get a tenant in.

 

My property in Penrith has not seen a rental increase in 18 months either. Time to knock on the PM's door again. Mine is a dual occupancy property as well, so families with young kids tend to stay away from them, unless both properties are fenced off.

 

It could be your choice of Agent, it could be the vacancy rates, it could be the price, it could be that the property needs work done, it could be the location, or it could be a combination of factors. Rather than reducing rents, why not offer one week free.

 

Clearly the agent is wrong.

 

If you have an agent, they should be telling you exactly what the deal is, unless they are the type that just says drop drop drop & they never do any talking, asking questions etc etc

 

I have a 3/2/2 TH in penrith, close to station, increased $10 rent last Dec. seems ok so far.

 

I've had little issues over the last 8 or so years. Tenants changed but found quickly

 

It sounds like a desirable property, so the tenants wouldn't be moving unless they had to. Even if they did move out, due to the selection of properties available most people would be applying for the best properties only so you should be fine there too.

 

Thanks, Recently I checked the asking rent currently on the market and mine is still $10-$15 lower than similar ones. I'd like to keep it this way so tenants have no motivation to move out anyway. it's more important to have good tenants to look after the property than higher rent and longer time vacancy...

 

Probably a good way to look at it.
You want to get fair market rent, but a few weeks vacancy can negate a small increase pretty quickly.