Qld. What is peak rental times

Discussion in 'Property Management' started by couq, 14th Sep, 2021.

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  1. couq

    couq Well-Known Member

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    We have a new property house 4 bedroom with rental finishing 11th Jan 2022.
    We are looking to also do a bit of work 2 to 3 weeks. Taking it to end of Jan 2021 for available to rent.
    The tenants have asked for a one month early release of contract which would be 1th Dec 2021. I am worried that trades may be hard to find over Christmas and may not agree to early termination. What are people's thoughts on peak times to get renters: start or end off January. Suburb is 4121 postcode
     
    Last edited: 14th Sep, 2021
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  2. Michael Mitchell

    Michael Mitchell Well-Known Member

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    Just like a bus there's always another Tenant. It is always rental time, there is no best buying/selling/leasing time, IMO it's a fallacy. I lease properties all year round including challenging times like end of year when holidays and businesses closed which makes it hard to get movers and cleaners etc. If anything just work around those considerations perhaps.
     
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  3. Heinz57

    Heinz57 Well-Known Member

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    But January is good with kids setting in to new schools etc
     
  4. MB18

    MB18 Well-Known Member

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    The nuisance of trying to find a property to rent over christmas/NY is the lack of actual rental listings.

    I assume this is because once upon someone said it was a bad time have a lease start/end and it a chicken - egg scenario started whereby landlords dont like lease changes so tenants forget about (or cannot) start a lease then.
    Ive done it once but it was a headache to sort out as the PM office was basically closed for two weeks - probably where the rumour began of it being a bad time to lease.

    As mentioned above, no good or bad time. People need/want rentals to live and that won't change because its the holiday season.
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Agencies close - it may be different with WFH but it's Qld & Christmas 1987 is year round up there.
     
  6. Tom Rivera

    Tom Rivera Property Manager Business Member

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    My experience is that enquiry levels in the last two weeks of December can be as low as 20% of the enquiry levels on the property in the first two weeks of January. This is also true to a lesser degree early Dec/late Jan and then throughout the other 10 months of the year everything is much of a muchness.

    Theoretically it sounds great to get the trades in over December and have it ready to go on the 2nd Jan, BUT this situation requires you to be sure the trades and agent will have everything done and organised (e.g. all works, lawns, cleaning, professional photos, etc) ready to go the day after New Years Day. Some agencies aren't even open till the 2nd week of Jan...! The other issue is that you'd be guaranteeing yourself at least the week of vacancy over Christmas- sure it's great to take advantage of maximum enquiry, but not if it's going to cost you extra vacancy unnecessarily.

    Assuming the agent hits the ground running in the first week of the new year, I would propose that the tenants can vacate a little earlier in January, 01st-02nd?? This would be contingent on their cooperation letting trades through to quote and get organized in December. Depending on the works involved you may even be able to prioritize any cosmetic items and advertise the house before it's all finished (e.g. paint and floors have to be done before photos, but tap washers and gutter cleaning doesn't). You'd have a prospective listing date around mid-Jan?
     
  7. RENI99

    RENI99 Well-Known Member

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    I think the availability of tradies and the tendency for work to overrun is the main issue - but does depends on what sort of work you are planning and how many tradies involved. They will be hard to get at that time and all trying to finish multiple jobs before XMAS. And they they will shut down for at least the first 2 weeks in Jan and some for longer. Doing quotes with tenants will also be challenging. A lot of the good tradies will already be booked out.

    I had a similar situation with updating 2 bathrooms in Dec last year and early termination of lease- working with a builder I had done work before (and most of the time I was in a different state). It went reasonably to plan but there will always be hold ups and things beyond your control which will mean its likely to take a lot longer than you have estimated.
    The tradies tend to come up with last minute dependencies that ends up with you delaying the project (not their fault) and often supply of the materials can be an issue. So detailed planing of what needs to be done and what materials are needed and when is important. Even a small thing such as having the utilities connected can loose you days as they divert to another job.

    Then the 2nd issue is when the agents are working -> so that should be clarified with them - yes the offices might be open but will they be holding inspections during that period - most have a break for a least the XMAS to New Year period. And whats their opinion on the best time to lease your property as it will have a some dependancy on the type of property and target market.
    The 3rd consideration is whether the tenants might also break the lease anyway -> and then there are requirements of you in order for them to continue to pay the rent. Like advertising and making sure you make reasonable efforts to lease the property out.
    I have found that end of Jan is better than early Jan for my properties but will depend on demand in your area.
    You might be able to negotiate the earlier exit date with access to tradies for quotations - if you say no to the early re-lease then be prepared for access to become a problem.
    You can advertise well in advance of the property being available and that might align with people that are looking for a property at the end of their existing leases (risk here though if the work overruns and what Available date you use). I used on file photos but then had them redone after the work was completed so I would have them ready for the next time.
    I deliberated over what to do -> it was not an option not to do the work and yes we did have to have the house empty for 2 weeks over XMAS with no trade work in progress.
    It took 6 weeks elapsed to do the work and another 2 weeks after that to lease it out but market was a bit slow at that time.

    I think in your situation you be better of having the tenants until the end of their lease and having the work booked in to start on their exit and re-lease early Feb. That would mean missing rent just when the work is in progress and not over XMAS. Assuming the tenants dont break the lease and you can get tradies in there to quote asap.
    Also make sure you understand the tenants rights around end of lease etc as if they have not given you formal notice you would have to give them notice and then the situation could change from what they are allowed to do.
    If you can be on site also when works happening to keep an eye on it that will help - I know there was some latitude taken because I was not.
     
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  8. momentum26

    momentum26 Well-Known Member

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    If international travel remains closed over the Christmas period then except for Christmas & New Year’s Day I would anticipate rental demand to remain strong even in December this time around.

    Considering NSW/VIC are still in lockdown and will open near Christmas, there will be more people through the doors or inspection for both rental & sales.
     
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  9. KT8

    KT8 Member

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    Straight after Christmas. January is a great month to seek a tenant.
     
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