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Rental market Rocky

Discussion in 'Property Management' started by HUGH72, 2nd Jul, 2015.

  1. HUGH72

    HUGH72 Well-Known Member

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    Okay after posting on SS that the rental market was flat only in Rockhampton I have had to drop the rent on 3 properties there.
    I should say I was advised to do so when the tenants vacated.
    So I dropped the rent on one by 15 dollars per week another by 10 and the last one will be dropping by 20 dollars per week ouch!
    Hopefully things will pick up but it is probably due to low rates and anyone with a job is looking to buy if they can. We haven't had to drop rents there in 7 years.
    Anyone else experiencing the same situation?
     
  2. norwoodman

    norwoodman Well-Known Member

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    When was the last time you had a place back on the rental market in Rocky? The rental market went through a decline around 2 years ago and has generally stabilised in the last 6-12 months.

    Impact on rental market was more to do with the supply coming on to the market in certain pockets of the Rocky region and loss of some manufacturing jobs tied up with the mining sector rather than interest rates driving people to buy I'd say. Compared to its neighbours Mackay and Gladstone, the fall in the rental market over the past couple of years has been relatively minor, albeit not great.

     
  3. HUGH72

    HUGH72 Well-Known Member

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    I agree its much more stable and diverse than Mackay or Gladstone. I have probably been lucky with longer term tenants and very few vacancies.
    One house in Park Avenue 4bd brick was achieving good rent but when the tenants moved I was advised to drop the rent, it was vacant for 2-3weeks so not too bad.
    I have tenants vacating toward the end of the month in another house who I think are looking to buy, I was advised to drop the rent by 20 dollars per week. Not great but always better to be tenanted than vacant I suppose.
    I hope the new developments will slow down a little so supply can be absorbed smoothly.
     
  4. Kael

    Kael Well-Known Member

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    I've had to do this before in Melbourne. My IP was rented out at $320 a week, when tenant left, PM advised to reduce to $310, reduced to that amount, got a tenant a few weeks later. That tenant moved out after a few months (they didn't feel safe in the property apparently) and I had to drop the rent to $290, still struggled to find a tenant. Was about to ring my PM to say "reduce it to $260, I can't keep losing this money every week!" when she rang me first, advising she had found a tenant.

    Reducing rent sucks, I agree.
     
  5. Be Developer

    Be Developer Property Developer Business Member

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    @Kael

    Where is iP in Melbourne?
     
  6. Kael

    Kael Well-Known Member

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    Brookfield/Melton. My first property decision and my first mistake. Learnt lots from it ;P
     
  7. dan2101

    dan2101 Well-Known Member

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    Vacancy rate in Gracemere has gradually dropping over the past year. Down from around 10% start of last year to 4% at the moment. Rocky is generally fairly similar.