NSW rental having trouble renting out

I’ve had a property listed for a few weeks that hasn’t had much people show for open house.

I’ve reduced the rent by $100 already and just want how I should do my rent reduction. Eg reduce by $20 a week until it’s rent out?

I’m nervous about it dropping to such a low amount if it goes down any further.

The original listing price was what was recommended to me by the agent but now they can’t lease it out they tell me on a weekly basis to reduce my rent.

It’s a well maintained property.

 

Where is the property located? What type of property?

 

This same scenario is playing out in a number of places. People often can’t resign a lease at the amount they were getting 1-2 years ago.

Look at the advert wording. Look at the photos. Look at the property as if you were a tenant. If all that checks out ok then consider offering 1 week or first 2 weeks rent free. You need to differentiate your offering in a crowded marketplace.

 

How does your property compare with other similar properties available to rent in the same area?
Looking at these propertied, is your asking rental price reasonable?
Marg

 

If your property is in Sydney (where I am a property manager) and you send me privately the listing, I can have a look and give you another opinion on what is heppening and what perhaps you could do. If it's outside of Sydney I won't be able to help you.

Not a good place to be in and I feel for you. I am finding that lower end properties are easier to rent but once you hit the $550 plus rental market and as you go higher, it gets a lot harder to fill vacancies and it requires a lot more work by property managers and patience. Whilst oversupply is an issue in some pockets, I also believe that the uncertainty of the economy - is causing potential tenants to lower expectations so high end properties suffer. Tough times.

 

Particularly in a tough market you really have to make sure your agent (and you as the owner) are doing everything you can to give the letting campaign the best chance. Sharp and appealing copy, professional photos, enhanced listings on the major portals, flexible times for tenants to inspect etc. Yes some of these things cost money, and in the face of falling rents and increasing vacancy some owners can be hesitant to spend on them. This is when you need them the most.

As a general rule if you are not getting many people showing up it is indicative of a price problem. How to go about the price reduction is dependent on how your agent does the letting. If they just run an open house on a Saturday with no software such as Inspect RealEstate that allows tenants to book in for an inspection, then you are probably stuck with once a week and generally a bigger drop each time.

If they do use software such as the above you can be a bit more strategic. You can drop it by a smaller amount and see if you get any interest over 3-4 days. If someone registers, you keep the price set and get them in ASAP. If they say no you drop again and monitor for a few days.

As mentioned above also you can discuss with your agent some things you might be willing to look at for the right applicant. Maybe you would include water for the first 6 months, or a week free rent if the lease is commenced by x date, or you would look at a longer lease period etc. That way they can go into a discussion with the tenant straight away knowing what is on the table.

- Luke

 

Would help knowing what suburb and state youre in.

How are your photos vs rival ads? A professional photographer (or equivalent friend who can fill this role) can mean a world of difference.

Regional areas can take a while to rent out. Took me 2 months once.

As an extreme measure you can run your own google ad campaign (via airtasker or elance) to put your property front and centre for people searching for rentals in your area. Spent $300 doing this once to break my 2 months vacancy woes.

Depending on your suburb, savvy tenants can force lease to be renewed for less rent if owners know finding a new tenant will be a struggle. In these cases, lower rent ads are used as negotiation tool and nothing more

 

As the rental market gets tougher (for owners) in some areas, I think planning and strategy really comes into play. A good agent will begin 'testing' the market as soon as they know there will be a vacancy so they can gauge the amount of interest and adjust asap even before the old tenant leaves.

Other than the strategies already mentioned, think outside the square. If you're in a complex with similar properties, maybe try a letterbox drop so other tenants not on a fix term may consider switching for a lower rent. Or if in a major city then try sites like gumtree or rent.com.au to increase exposure.

 

thank you all. This is so stressful. I think my price is comparable, almost the same as a property with less rooms.

My agent isn't suggesting much but to reduce the price.

 

Hi @giraffez

Sorry to hear about your unfortunate circumstance. Would you consider sharing the rental ad with us so we can take a peek?

 

Maybe its time to consider a new agent, who can bring some new energy, new suggestions, possibly new photos and re-vamp the property marketing?

In the past I have done this with my properties when an agent just doesn't have the urgency an owner feels to rent out a property.

 

But are the other properties truly comparable?

You must consider ALL aspects, not just size. Maybe they do have fewer rooms, but may be better presented, more attractive, better located, or the rooms better laid out?

And when you say your asking rent is “almost” the same, I feel your property is more expensive.

In a tight market, you have to be brutally honest with yourself. Just because you feel more rooms justifies a higher rent, tenants may prefer a cheaper but smaller property.

If your property is presented well and advertised widely with good photos, price is usually the sticking point. Marketing, photos etc will only take you so far, definitely will help get inspections but in the end it is the actual property that will decide if the tenant signs up.

Maybe your agent is right?
Marg

 

House or Apartment?
Suburb?
Asking rent?

 

If you feel your current asking rental price is fair it may be the result of saturated rentals.

So in this instance you need to make your property stand out more. You could allow for pets, offer two weeks free rent or a night at the local fancy hotel for two or something. The only other alternative is to drop the rent further.

Sorry I do not have much else to offer.

Good luck with it all.

 

I had a case where the listing didn't match the property. My townhouse was categorised as a free standing house. When people did their searches they under townhouse my property didn't appear and when they searched for a house, they might my see my property but it wasn't what they were looking for.

Try doing a search for the type of property in the general area and see if yours appears.

 

Its not the Opal Tower in Homebush Bay is it?

 

Giraffez, I reckon people here are going to be able to offer plenty of specific suggestions if you post a link to the 'for rent' ad for the property. Everyone is flying a bit blind right now not knowing anything about the property or where it is.

 

Even seemingly minor things like the order of the photos - particularly in determining which is shown in the list view on the advertising portals - can make a difference. If you are comfortable posting the link that would be very helpful but even knowing where it is, what kind of property, number of beds/baths etc, might help yield some more specific advice or input.

- Luke