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Rental prices Perth

Discussion in 'Property Management' started by Perthguy, 24th Jun, 2015.

  1. Perthguy

    Perthguy Well-Known Member

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    I have a place in Cloverdale that has been on the market for rent for over 6 weeks. Previous rent was $440 per week. There is no interest at $390 per week. The agent called some contacts at another agency and without inspecting the property they advised $320 per week! :eek:

    That seems rather low :(

    To give you some idea, there is a house in the area listed for rent at $320 per week. In my opinion it is not comparable to mine.

    http://www.realestate.com.au/property-house-wa-cloverdale-411519655

    I was thinking maybe $360 or $370. There is something around the corner for $365 which I don't like as much as mine.

    http://www.realestate.com.au/property-house-wa-cloverdale-414763859

    I don't have a link because the property has been taken down for a week then it will be relaunched at $360 or $370. However, here are some photos for comparison. I know the colours are a bit weird, but it is neat and tidy and in good condition.

    Lounge.jpg Kitchen.jpg Verandah.jpg

    Update: while I have been writing this post my investment partner spoke to some more agents who suggested relisting at $350 per week. Ouch!
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Do you allow pets? That could give you an edge as so many don't.
     
  3. Perthguy

    Perthguy Well-Known Member

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    That's a good thought. I would consider a cat or other pets besides dogs. I have had two tenants previously with dogs and both did extensive damage to the property they were renting. I will reconsider the wording of the ad when the property is relaunched.
     
  4. thatbum

    thatbum Well-Known Member

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    Yep I definitely agree with this.
     
  5. mrdobalina

    mrdobalina Well-Known Member

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    20% drop in rent. That is huge! :(
     
  6. Perthguy

    Perthguy Well-Known Member

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    It is. The problem is the number of places on the market in the area. If I do a re.com.au search for 3 bedders in Cloverdale, Kewdale and Belmont, there are 92 properties. That is a lot to compete with!
     
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Ouch for you - I hope you don't have to go lower than $350. Thankfully for the moment I'm ok but I dreading every lease renewal.
    As Jess suggested, I'd say 'pets negotiable' that encourages people with pets to apply and you can vet what type of pet you might consider - my tenants pet snake is an awesome pet - he came with permits to keep and everything.
     
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  8. Perthguy

    Perthguy Well-Known Member

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    Thanks all. That's some good advice right there! :)

    In the meantime, I am sending my investment partner to some home opens of comparable properties to see if anyone is actually turning up and to get a feel for pricing. At this stage it is looking to be $350 or $360 pw. If so, that's a reduction of $80-$90 per week! That's the most I have ever had to discount a property to find a tenant.
     
  9. Perthguy

    Perthguy Well-Known Member

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    Well, preliminary indications are that the rental market in the area is very flat. My investment partner reporting live from current home opens. Property 1, $380 per week, very poor condition, no people turned up for the home open. Property 2, $330 per week, not horrid but not flash, no people turned up for the home open.
     
  10. Perthguy

    Perthguy Well-Known Member

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    final updates before I call it a night: Property 3 - 3x1, $340 pw, certainly not neat and tidy, one couple for the inspection. Property 4 - 3x1, $385 pw, seems ok, one person.
     
  11. mrdobalina

    mrdobalina Well-Known Member

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    Probably only going to get worse with all the apartments that are coming up around the area.
     
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  12. paper

    paper Well-Known Member

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    The property manage tells me the market is bad. The only thing to attract the tenant is to reduce the price.
     
  13. Perthguy

    Perthguy Well-Known Member

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    Not many three bedders in the apartment market, so I'm not sure I will be competing with them. I would not like to have a 1 or 2 bedder though.
     
  14. Perthguy

    Perthguy Well-Known Member

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    May not be correct if it is already priced competitively. Our limited market research on one day and 4 inspections indicates that even the cheap properties are not attracting renters.
     
  15. paper

    paper Well-Known Member

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    I have been told there are more than 2000 houses/units on the market comparing to 1 yrs ago.
    It is oversupplied.
     
  16. mrdobalina

    mrdobalina Well-Known Member

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    They're still gonna suck away potential customers who are tossing up between a 3 bedder house and 2 bed apartments that may be in a more convenient location.
     
  17. HD_ACE

    HD_ACE Game-Changer Premium Member

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    6 weeks without a bite. I would look at starting at $350 and prepare to reduce to around the $300 mark in this market. I have a similar but probably slightly worse condition rental signed again at $380. Have a new 3x2 coming onto the market and could be looking to go as low as $400 if I cant find any interest. Have been testing the water in the mid-high 4's while waiting for completion and not a single bite.
    Tough times indeed :( but this is why we prepare for this time of the cycle.
     
  18. Perthguy

    Perthguy Well-Known Member

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    I understand. Yes, I am prepared for this. Still, I would rather find a tenant than leave a house empty if there is something I can do about it. The property has been taken off the web sites and will be relaunched next week with a new price, new photos and an amended description. We'll see if that makes any difference.
     
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  19. paper

    paper Well-Known Member

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    You may try to rent individual room to individual person for sharing the house

    Lots of people are willing to team up to rent for a couple of rooms.
     
  20. rhinsor

    rhinsor Well-Known Member

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    My tenants picked up the keys today to my new IP.
    First advertised at $450 then leased at $400 after 6 weeks.
    Quiet times this year
     
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