Rental prices Perth

May be you drop the rent too much which causes someone thinking it must have a problem...
Never drop the rent so significantly, otherwise, only will hurt yourself...

 

Online application is taking a bit risk as you do not know who is who (someone may pretend to be someone else).
At least, they have to come to view it 1st then apply it later.

 

Have you thought about offering 1 to 2 week free of rent if they sign a 6 or 12 month contract?

 

The current company is doing home opens and doing all the checks on the applications. The checking process seems very thorough. I have been happy with the feedback from the agent so far based on the checking process.

 

Already done. Made no difference. With the number of rentals going up in the area, I think it is just a waiting game. Wrong time of year

 

you need to get in front of this, hoping and waiting is a dangerous game. realistically what do you think market rent is?

 

I was getting $440. Now listed at $340. I really think the market rent is $350 or $360. I think that listing at $340 was a mistake, is giving the wrong impression of the property and that price is attracting the wrong type of tenant. The agent has told us not to drop the price any further.

I think the issue is that mostly properties are staying on the market. I took a snapshot 2 weeks ago and there were 41 properties for rent in Cloverdale. There are now 47. There are only 3 that I can't see listed anymore. There are only two 3x1s listed that are cheaper than ours and they are very skungy.

So with new marketing, a fresh listing, more flexible conditions (pets considered) etc, I don't see there is anything more I can do to "get in front of this". If I have missed anything, please let me know.

 

ouch, fair enough, hope you get someone soon. agreed that you're doing all you can.

did the agent suggest 440 initially? i'd be pretty upset with them if that's the case as at the moment you need to be priced competetively to avoid sitting there for ages.

 

$440 was what the previous tenants were paying. This house first got listed at $380 based on comparable properties. Agent suggested $360. I messed up the pricing in the first place because I based my price on comparable properties for rent in the area, not realising that they were sitting on the market for months at those prices. Most of the properties listed 10 weeks ago are still for rent. Some have had price drops. It has made no difference.

Here is the lesson I have learned. As soon as the tenant gives notice, start following the market. If I had done that, I would have very quickly discovered the market is dead and to price accordingly.

 

thanks for sharing. ive been asking around since you posted this and youre right it's worse out there than i realised. i think it's only recently that the drops are across the board.

a friend just leased a 3x2 townhouse in leederville for only 475/wk which would not have happened 6 months ago

 

I doubt you've dropped too far. Anyone looking would know what it's like. In fact, I'd be tempted to go even further and maybe increase after 6 months. Sure there'll be the wrong type but you'll get some good ones too. Singles and couples saving for deposits are very stingy and you might get someone really good. You've got to stand out.

 

I really hope you are right. I guess from one point of view we are sitting pretty in that we are by far the best house at that price point, with only a couple of very skungy houses that are cheaper. Fingers crossed the right tenant will come along soon.

 

Yep! We'd all be Billionaires with Hindsight, altho I study it and tenants contentment regularly regardless (one of the benefits of self manage) depending on contract terms we only have to give 60days notice to increase
+ depending on tenants reason for vacating, providing they've been good tenants, see if they can be tempted to stay at a less rate or offer of upgraded luxury etc (reno Kitchen, bath, outdoor etc, )

 

Just got my good news today :

property manager
Tenants are happy to sign the new 12 month lease agreement but would like a rent reduction, they mentioned $500 per week,

I said I would have a chat with you and let them know, Please advise your thoughts?

10% reduction. looked at others on the market and mine still a reasonable price. so going to advise to keep the rent at $550. Padbury 4bedroom with a pool.

 

Tenants are asking, as your not self managing you only have 3rd party info from a busy PM with lots on her/his plate.

If it were me, if they've been good tenants, never breached etc, I'd always do what I can to keep.
Considering current uncertainties & reason for this thread, I'd weigh up what it would cost you pa for reduction vs costs of changeover and potentially sitting empty for the next 4wks (maybe more).
Perhaps allow for increase in 6mths of new agreement in-case the tide turns, doubt it though.
As said, always look after a good tenant who costs you nothing

 

P.S Having said that they have to find a new suitable place, come up with bond, shift all their gear, clean, cancel services and establish at new place, so meet them half way

 

Rather than giving them everything that WestOz recommends, i'd meet them half way.

 

Grab em while you can!

 

It seems I have secured tenants for mine in Cloverdale. 14 month lease at $440. $10 less than expected.Pretty quiet market out there. Had advertised for couple of weeks before completion at the higher range to test market.

Decreased rent weekly and then had a fair bit of interest at the 440 mark. Took 3 weeks and then another to allow new tenants to sort their end out.

So pretty happy about that in this market.

 

Your right PG there are alot of listings so loads of choice. You either need to price attractively to get someone in or advertise more. Had proffesio al photos and feature listings for mine. Maybe add free rent in the add or free foxtel or something a bit more outside the box. And with that backyard I would definatly be allowing dogs. Your cutting out a pretty neiche market there imo.