Property manager says it will rent for X. Banks say it will rent for Y.

Could you explain a bit more about what you mean by this? I'm not clear.

Could you share what your experience has been with Nelson Alexander, and whether you've had a more positive experience with another agency? You're welcome to respond via private message if you prefer.

 

A place is listed for $320 per week. However, when they finally find a tenant, it actually rents for only $300 per week. I have found this a lot in Melbourne.

Specifically, quoting and low price but refusing to take the listing because the property was in too poor a condition. The tenant had just moved out and we had not cleaned the place up yet. This was explained to the agent. Listed with another agency after being cleaned up. Got a higher rent than quoted by Nelson Alexander.

Another agency took the listing and found a good tenant at a higher rent than quoted by Nelson Alexander. I would rate that as better service than refusing the listing

 

Property manager says X, bank says Y, Tenant market says Z.

Put on market at high end, if it's the right price you will get enquiries with minutes as search engines send out to peoples devices for specific searches.

Mr market ignores overpriced properties. No enquiries over one weekend period and no shows at a scheduled open inspection is a signal to reduce advertised rental price.

Properties should rent within a week if marketed correctly and at the right price for market demand for that particular property.

Use bank appraisal for its purpose and real live market testing to get it filled.

 

That's quite odd. My experience in Melbourne, as a renter myself, has been that renting is super competitive and people are regularly offering more than what's asked for, just to get the place. This has been especially true in sought-after pockets in the inner north.

That's helpful to hear. We used to rent from Nelson Alexander and found them both rude and unresponsive. The property manager I just spoke to was quite similar.

Yes, but every dollar counts, truly....

Excellent advice. Thank you. We'll do that.

 

One more question - how quickly after settlement can one reasonably have a tenant in place, and what are some smart strategies to do so?

Is it ever possible to hold an open-for-inspection prior to settlement - for instance if the property management is being done through the agency that sold it?

What if property management is being done by a different agency?

 

You can always ask. But completely up to the vendor. Could be issues for the vendor with their insurance if any damage occurs.

Don't forget to insure the property once you buy it - even before you take possession. Just in case the vendors aren't insured properly and it burns down.

 

Our quickest was the day of settlement. The vendors were building a new home and were happy to stay on until it was built. So, we signed them up as tenants from settlement.

Our latest IP settled on 6th April and our tenants moved in on 16th April. This would still be considered rather quick and I would imagine it to be the exception.

A more realistic timeframe is probably a month, could be more. You need to advertise the place, get people through, ...; your new tenants have to submit applications, have them approved, arrange to vacate their current accommodation/move to your new IP, ...

It really does depend on the rental market around the time you settle, the ability of your PM, etc.

You can if you had a clause in the contract which states that "In the period after the Contract has gone unconditional and prior to settlement, the Seller agrees that the Buyer is authorised to allow potential tenants to view the property, by prior arrangement with the Agent".

Unless I have an alternative, I always use the same agency, especially if the above clause is in the contract. This was the case with our latest IP. It is not that difficult to sack a PM if they don't perform.

This will most likely make it a lot harder to sign up a tenant close to settlement day.

 

We aim to make entry to the house prior to inspections the norm but it does not always work out that way.

To ensure it happens we put as a clause in the purchase contest. - vendor must allow access to the purchasers property manager 30 days prior to settlement for the purpose of allowing potential tenants to view property. This increases your chances of coordinating a lease close to settlement.

If they agree to the clause it would not matter if a different agency is managing the property, they have agreed to allow access. Sometime the property manager can pick up keys from selling agents office and sometimes the selling agent will be there to open the doors for the tenant inspections.

Need to specify time - we allow once a week at set times so there is predictability.

Pitfalls - problems in settling when there is a lease signed will cause major legal headaches because the lease is in the name of the purchaser as landlord who has no legal right to lease the property.
Need to ensure 1. That vendor is flexible enough to allow a lease in their name and apportionment of rent recieved if contracts need to be amended last minute.
2. That tenant is aware of situation and flexible enough to delay start date if required - we have had to do this before with a very flexible tenant (not all of them are).

Ensure PM is ON THE BALL - not some 20 year old employee who just takes orders. So much can go wrong in these situations so you need someone who can turn it all around and make it ok for all parties involved should things go wrong.

If unsure wait till it settles

 

Keiran if we are involved with a client at the beginning, ie know what they are buying - sometimes clients will ask as to view properties prior to purchase and give them a market appraisal so we know what's coming. We ask for a clause in the purchase contract allowing us access prior to settlement. It's easy when it's negotiated up front.

When clients come with contracts already signed, yes it is near impossible to negotiate access. In this latter case, we would advertise prior to settlement and aim for first opens at settlement. That minimises time on the market too.

 

Great minds think alike . I have found that vendors are more accepting of this clause if the property is unconditional before showing potential tenants through. Sometimes, the vendors want to vacate the property before they will let potential tenants through. I am OK with that too. My motto is "No harm in asking".

I would always leave a few days (sometimes up to a week) between settlement date and the date the tenant can move in, just in case something goes awry (it nearly always happens). You don't want the tenants' removal truck parked in front of your new IP but it hasn't settled.

The safe fall-back position.

 

Agreed.

Agreed.