Pointless IP - how to proceed

Did you reduce the rent? What's it at now?

 

Thanks for the update.
Hang in there, hope it all works out soon.

 

Cimbom very sorry to hear about the situation ...
I domained your suburb, at 190pw there are still at least 3 properties cheaper than yours and one of them is a four bedroom. Understand they may not be in as good condition as yours but given someone has mentioned demand in this area may not be too high due to affordability to buy, I would consider dropping the price, to match the lowest that's on the market. It's a $20-30 drop per week which I know is significant if you count the prior reductions, but I think you might as well give that a shot. You might get more applications at the lower rent and may be able to pick a better tenant who's prepared to stay longer ...
Have you worked out the cost to sell? I think the rent drop will be peanuts compared to the exit fees you will have to pay eg cgt, agent fees, conveyancer fees etc.
Just my 2c ...

 

The rent is now $190/week. I just spoke to the PM and there still haven’t been any more enquiries.

If we sold, there'd be no CGT and we'd be lucky to clear the loan. I have advertised it for sale on Gumtree myself to avoid having to pay the agent costs but haven’t had any luck with that either.

 

We received an application over the weekend but the applicant hasn't inspected the property yet. She also submitted applications for two others in the same area but our PM said he will try to push our property. It is also better than the others as we have air con, BIRs and the extra bedroom. Fingers crossed!

 

Is there any reasin why it isnt being rented? I notice there are a lot of houses for sale in Ashmont, what is the reason for this?
Is it a good IP area ? Should I invest in this area?

 

It's one of the worst suburbs in Australia. A lot of PMs refuse to take on properties there.

To get a tenant you really need to undercut the competition or otherwise face vacancies.

 

Thankyou DT, i had a few IP' s in Tolland and Kooringal before.
I sold these at a good capital gain, i cant remember this area Ashmont though.
Of course all this area is part of Wagga Wagga.
It seems to be a Housing Commission area.
I dont like to say areas have no potential because its the people that live there that make an area, but you right it seems to be an area not growing.

I guess theres an oversupply of rentals in the Wagga Wagga area , would that be fair to say ?

 

I was going to say if you dont know ashmont its not for you but since youve had tolland propertirs. In surprised youve neevr heard of it

Takes a great set of kahunas

 

Yes i had 2 bedroom units in Edney street .
I bought the Tolland property in 2003 for $43,000 2 bedroom unit and sold for $68,000 in 2006.

 

Hi Cimbom, Know what its like to be frustrated by a property not renting or selling
Maybe thinking outside the square could help ? What are some industries around there ? Do their workers need accomadation ? Is there a business in town thats growing and needs extra workers...offer your house to them for rental.
Once when frustrated we did this and got good results just from contacting local businesses. Another time we offered a $100.00 Gift voucher and had 3 replies and 1 tenant who didnt even ask for the voucher We placed a flyer in 2 local stores for another and had quite a few enquiries from that. Another time an Indian grocer said he would get 4 tenants for $400.00 commission upfront..... I said I would pay him when he got the tenants, 5 weeks later there were no tenants
Try and think of something that none of the others are doing, does the property look attractive from the front ? Ask the local mower man if he knows of anyone who may need a house and say that you will get him to look after the gardens if he can find one.

 

Another way is to increase Security... Grilles on windows...make it Fully fenced... Dogs allowed....put up a Carport...put on security screen doors...all pets allowed... Children allowed...
Have you trued partially furnishing it ?
This is a low income area, how about buying matresses and bedding and wardobes and a lounge ? You can buy from secondhand stores.

I say furnish it ... It will get you more interest especially in a low income area.

People like to feel safe... They usually like fencing especially if they have pets or small children.
I always fully fence a IP after buying.
I always put a security screen door on the front and back.
I usually always put up a carport and window locks if not security grilles on the back.

 

Fingers and toes crossed for you on the application. Otherwise, I hope the change in season brings the tenants back out from the gas heaters and off their mates' couches. It usually does down there. Over the years I've seen the vacancies rise and fall and usually by October the number of vacant properties falls significantly.

 

Thanks for all your replies. The applicant inspected the property today. My PM informed that she is employed in a stable job and is making an above average income for the area however, she has been given a notice to vacate by her current landlord due to a month of arrears. Ordinarily, I wouldn't even consider her application but don't know if I should lower my standards given we've not had the house vacant for close to four months.

Does anyone know the maximum rent a landlord can ask for in advance? I was thinking to ask for a few weeks more than the normal 4 weeks plus bond (if possible) or to just put her on like a 3 month lease initially but it doesn't really change anything. Thoughts?

 

There is probably more to it than a month of arrears...The other land lord would be in the same situation as you with finding tenants so to give one the flick it must be more than just arrears. I have had tenants fall a month behind but they caught up and are still there.

 

There was some minor issues with having to remove her child's drawings from some walls but that's all the PM mentioned. I'll speak to him tomorrow to find out how the inspection went (it was after 5pm) and will see if I can get more clues.

 

Have PM tell them that they're aware of their history and offer a 3m lease to see if she can turn things around. Offer a longer lease afterwards if all goes well.

My gut feeling of the situation, however, is that you could undercut the rent below the comparables and you'd get better quality applications. Slowly increase the rent afterwards once you have someone.

Just remember you're earning zero at the moment. And may continue earning zero with a tenant with a history of arrears.

 

I was thinking to ask for 6 weeks rent upfront and put her on a three month lease to start with - that way I know that at least half of the rent has already been paid. Am I allowed to ask for this much upfront? Of course, she'd need to have enough savings to be able to pay this too

 

2 weeks is the max, sorry. (Unless they offer)

 

Agreed.

I know you're desperate - but taking on a tenant that's just been kicked out of another property seems like a terrible idea to me.