Dear PC Members, It's been very difficult to rent my property in Oakhurst/Plumpton area. Does anyone have any idea. Rents are dropping like anything in the past few months and there are properties waiting to be rented out for more than 3 months?
It's going to get down to price and how your property compares to other rentals on the market. Post a link to the ad that is being used to rent out your property. People here are sure to have suggestions.
What sort of feedback are you getting from your PM? Are you getting people enquiring/coming to inspect? Yes post up the ad for feedback
In pockets of Sydney, it’s exactly how you are describing: hard to rent (several weeks) and rents are dropping... up to $100 in places as owners get nervous. People are saying “it’s not a tough market and I’ve just put my rents up” but I think it’s in areas that has not been overdevelopment, they have a nice property and they have long term tenants. Just stay the course and be prepared for a longer than usual vacancy period with lower rent in the short term.. short term in my opinion being minimum of 12-18 months.
Failure to rent is usually due to either price or presentation, usually price. If your presentation is good, drop the price. If presentation poor, either improve presentation or drop the price.
I just had a tenant changeover in Marrickville. Plenty of new supply there. I was asking $420 per week for an old flat, but one in good condition. The best of the applicants offered $400 per week and wanted to start the lease in two weeks. The PM told him $400 was okay if he started in one week. Deal done, but I had to meet the market. If I had held out for $420 it would have been empty for weeks.
Thank you all for your feedback. Sorry, I should have made it clear in my post . I am trying to rent out considering 2 properties in my same street are there in the market for a while without being rented out. I was thinking it is better to sell it or lower the rent. Based on all your feedback , I think it is better to lower it and put it up in the market and see what happens.
This happens after a boom. Many investors have bought and there is an influx of rentals. Give it time. It will even out and rents will become tight again. Lower the rent to get someone in and monitor rents in your area to see when you can lift it. Don't sell.
I would be asking the agent for their views. The PM may tell you they have 35 just like yours they are up against or may find yours has a difference (good or bad) that meets a specific need for a family. Never start with dropping prices as you can do that anytime. Start with asking and being accepting that a $20 week drop may get a tenant faster v's waiting for a higher price. Fresh stock like yours may pull someone who is looking and hasnt seen what they need for their furniture for example. Throwing in mowing etc may avoid a price drop as such or seem like better value.
Selling a property because it's hard to rent may be a bit of knee jerk reaction too. Sometimes you get unlucky and the better property doesnt rent quicker . Also markets can change pretty quickly. You'll be kicking your self if you sell, and then the rental market recovers and you get big cg
I've been watching the vacancy rates for Sydney for a while and they seem to be pushing up, higher number of rentals on market & as stock is higher rent prices seem to be coming down (albeit slowly). I'm looking at purchasing PPOR in short term however getting mixed signals from market, auction market is hot (because of interest rates, relax of lending laws etc), however higher rentals IMO means possibility for these non rented properties to move over to the Auction/Selling market.
Here are the vacancy rates for Oakhurst/Plumpton - it looks like over the last 3 years vacancy has spiked between Dec-March for there. might explain some of the competition you are coming up against
