QLD Rental Advert - When?

Hi All,

I’ve bought a property within middle ring Brisbane and am looking to do some cosmetic renovation (new floors, new door handles, newly painted roof, new lights/fans, new outdoor stairs) after settlement (first week of Nov) - all the renovations will be done within 10 days (ready for tenant by mid Nov) - Wanted to get thoughts on when to advertise for rent?

1. Advertise now and let prospective tenants know the works that will be done by the time they move in (try to lock someone in early)
2. Advertise a week before settlement (same as point one, just a bit closer to settlement)
3. Advertise after renovation - only concern here is the opportunity cost of securing the tenant after settlement (could take another 1-2 weeks)

My PM thinks advertising now is too early - but would like to get your thoughts? Has anyone else been in a similar boat?

Thanks!

 

I advertised my last Brisbane purchase 3 weeks prior to settlement. You have to get permission from the seller for one open per week.

We had multiple applications on first open and one of the applicants was happy to sign a lease with a disclaimer to allow for any settlement delays. We settled on Friday, tenant moved in on Saturday.


Property Managers are never keen for this sort of arrangement because 1) it creates extra work for them 2) they don’t care about how long your property remains vacant, they just lose 5% of what you would lose per day.

 

Yep - have already got permission from sellers to advertise

Just not sure when to start

 

If it were me I'd be doing all 3.

 

How much higher rent can you achieve after the cosmetic renovation? All other things being equal, is the improved presentation going to result in a rent increase high enough to justify the extra vacancy that advertising late will cause?

 

I'd go 3. even if it might cost some money on paper. Better quality tenants and just more efficient all round.

 

I think the new floors and new lights will make a significant improvement that's hard to explain in words to a potential tenant, so I would either go with option 1 now and not worry about the cosmetic reno till there's an opportunity down the track, or option 3 and ask for a higher rent.

 

Thanks all

The difference in rent would be between $50-$100 per week

Before renovations I was thinking we could get $600-$650 per week, after renovations we could get $700-$750 per week. A lot of older homes in the area with unrenovated bathrooms/flooring is approx $600-$650 per week.

I wasn’t going to have anyone come in and inspect during the renovations, was only going to have two weeks before and share with the potential tenants the changes happening.

A whole months vacancy is $3,200 mortgage repayment cost - which we can potentially absorb to get an additional $2,600-$5,200 in rent over the year.

 

As well as other comments above, do the calculations:

Just look at the rental impact (as long as you have some $ for repayments and aren’t flying near the edge), as your repayments won’t change.

Say 1st year rental (after reno) = additional $5200

Rental lost due to delayed advertising until complete. $600 / week = almost 9 weeks (5200 / 600).
So if you wait until post reno you will be well in front as long as you rent in less than 9 weeks.

Given Brisbane rental conditions I’d say you should be fine.

Seperate thought but consider cost of reno / return as well for your calculations.

Good luck