What percentage of rental inspectors submit application?

Perhaps the property managers/leasing officers of these forums are in a position to answer:

Since we the public can only see the massive queues and big number of groups going through for open inspections when vacancy rates are low and rental demand is high - like in recent past and presumably current present conditions. How many of those are legitimate prospective tenants versus say the neighbours being curious to check it out? Or encouraged by real estate agency spam to attend the inspection?

Like as a percentage, 10%? 5%? When a landlord has a property and wants it rented - is having big crowds and large number of groups in attendance at inspections a good thing? All we're after is 1 tenant, hopefully qualified. But as it's a numbers game - is it something property managers boast about? Like sales agents boast about their achievement of high selling prices, do property managers boast about high number of attendees at inspections or high number of applications for a sought-after property?

 

Odd question. I don't think there's many people wasting their time going to rental inspections just for fun. It's probably safe to assume they are probably all people interested in renting the place if it checks out.

 

To turn the question around somewhat: If Im looking at a property to rent I will generally apply/sign for one in around 5 or 6 that I end up viewing.

Based on a sample size of me and extrapolating it would suggest around one in five 'groups' would apply.

In my experience large numbers of people are usually seen at properties that on paper seem like great deals, until you arrive and those ten year old photos that omit the shoe box sized rooms fail to show what a dump the place really is.

 

TLDR: 100%. 8 viewings, 8 applications. First week.

I self-manage my investment properties. It is a shared-home type accommodation and the renters are free to select their future housemates. I help with the listing, pay for advertising and assist with the viewings for shortlisted applications.

I also make sure the place looks lovely and inviting for viewings to help the renters find their replacements sooner.

I now have a waiting list, these are applicants who were approved by the housemates but were a little late in applying and want me to keep their details so that whenever there's a vacancy, to ask them first if they're interested before I list the property.

The housemates have a 1 year rent agreement but after they sign up I let them know that if at all they need to move out earlier then to just let me know and I will help find them a replacement with no penalty or charges. Almost all of them wanted to move out because they found a new partner to move in with - this particular home is a partner magnet lol.

Recently, 2 housemates told me they wish to move out before their contract ends if possible (one with a fixed date in mid June who is moving interstate and the other one is moving in with her partner). I found them new housemates within a week (one's moving in this week and the other a day after the one moving interstate in June). I also try to help the renters with their move-out date so that there's no rental overlap/they don't end up paying rent at two places.

I have increased the room rents by 25% (this is actually now the market rate). But none of the extras will be going into our pockets. This will go towards a weekly cleaning service of the shared common space, garden and nature-strip maintenance, planning to get all the windows double glazed, free pet sitting lol.

I guess the housemates also speak to the new potential housemates about me? I am also extremely patient and tolerant. With problem renters, I fix the cause of problem and never, ever hold it against them. The weekly free cleaning service is a new bonus to address a recent problem. Maintenance turnaround time is usually 1 day e.g. dishwasher and broken window replaced/repaired next day, looking to buy a new cook range now, the renters didn't complain but I noticed 3 of the ignition switches were not functioning. Besides it is ancient.

I go miles out of my way to make sure their stay is secure, enjoyable and feel at home. That's probably why the home is never vacant, even during the pandemic. This is in an inner eastern suburb of Melbourne where a property can take remain vacant for several weeks (very high rent, poorly maintained or presented).

A real estate agent or a rental provider who is perpetually pinching pennies could never achieve this, which is why I decided to self-manage. My ROI is much higher than the suburb average.


Hope that helps

 

In some areas a rental being available is like finding unicorns. Many dont even bother with open homes other than to gather data and produce a shortlist of the best financially viable renters. Some dont even need to bother with that and may use last weeks open elsewhere. Declines for average punters are on the rise. PMs just want to get it leased to best possible tenant. Time is money.

I have noticed junk mail in our letterbox seeking property to lease and demonstrating high rents. Prob reflects scarcity

 

Was/Is the complete opposite in Metro Melbourne (regional Vic is crazy I hear). The vacancy rates were very high, think it is also getting very competitive as per one of our applicants.

 

Its quite a variable question and depends on a lot of factors including location, demographic and property specifics. There are properties that look good on paper but won't get applications and others where everyone wants to apply.

In this market in Sydney the ones that have a higher % of applications are those that are renovated, good outdoor spaces, natural light, pet friendly, quiet. They're positive features all the time but more-so now.

 

We do it the other way around - apply first and we'll invite the eligible candidates to come inspect.

Vacancy rate is very low here and so having 50 people show up to an inspection is counter productive because:
- They dont get to look at the property properly (to see if they're a long term fit)
- I dont get to talk to them properly (to suss them out)
- Around 40 wouldnt be eligble anyway
- Some dont apply (because they see how many people were there and think their chances are low)

Some properties have had 50 applications, depending on the property / area / price. I generally find about 10% are good.

Showing through separately is better because:
- Get good feedback on price and features in the property (which can then be relayed to owner to maximise his/her return)
- Get a better idea of tenants personality (ie will they be an easy to deal with tenant)
- Quicker approval process, if i show tenant(s) through that have been approved from our end, it's fairly quick & easy to summarise the best tenant(s) to the owner for them to give final approval on.

 

The way you described, like job applicants are also prevetted, makes sense. Only see those that seem suitable.
Unemployed, social security, single mum + kids on govt benefits, grandma on pension however may be pushed down a list v a couple both in decent jobs. But thats supply v demand.

No doubt the social jusctice league would cry and claim discrimination. Only some forms of discrimination are illegal. Not having jobs and income etc isnt one of them.
As a owner why would I want to fulfil the role of providing social benefits. That the Govt job not mine as a investor.

Discrimination can be against the law if it is based on a person’s:

• age
• disability, or
• race, including colour, national or ethnic origin or immigrant status
• sex, pregnancy, marital or relationship status, family responsibilities or breastfeeding
• sexual orientation, gender identity or intersex status.

Discrimination on these grounds is against the law in a number of areas of public life, including: employment, education, getting or using services or renting or buying a house or unit.​

Source : Australian Human Rights Commission

Important that the agent or owner etc use proper care in addressing the criterea used for selection to avoid any complaint after the event. Mr Mabo-Tuti may be aboriginal / tongan arrival and a hard worker without recent rental history and other aspects of other applications may mean he is less suitable eg others with dual incomes and a track record of looking after a property. It also works the other way. I have seen instances where a single mum with kids is preferred as she needed accomodation to flee DV and the owner even dropped the asking rent to assist. They had to ask me if it affected tax deductions. As long as its arms length ie not family thats fine.

 

Good gosh, I don't think I could handle so many people in one viewing. I am very flexible with viewing times, so they can visit any day/time at their convenience (as opposed to the twice weekly, 10 minutes fixed time window provided by REAs). We have only one person inspecting individually at a time and usually the 1st or 2nd one to inspect the property and is found suitable applies for the property and gets accepted.

My daughter's partner recently advertised his property through a REA. There was not a single applicant and he was telling me that his REA called him asked him to reduce his price. I said no, I will find him a renter and let his REA do the rest of the work. I listed it on facebook with my own write up and got dozens of people showing interest. There was one particular backpacker from Taiwan who contacted me from Queensland and said that her applications are always rejected by REAs and so she wanted to check with me whether I would be happy for her to apply. She had excellent references and a job to come to in Melbourne. I put her in touch directly with my daughter's partner and he did a video tour, she was very happy with the place, immediately sent her application to the agent and signed a 1 year rent agreement last week.

I would never discriminate and in fact my preference is usually for renters who might not otherwise find it easy to get accepted by REAs (e.g. ones with pets)

 

To answer the original question- I'd say about 30% of people who view the property at inspections apply (in my area).

Also- I would never boast about having too many applications, that just suggests you under-priced the property!

 

So, as it turns out, 75-80%. I held an open to public inspection for 2 units this past Saturday (over the Easter weekend, expecting reduced crowds as people are away for holidays), and I used secondary websites to advertise not realestate.com - I didn't need the exposure or high crowd numbers. It was priced a little higher than comparable listings in the building - going off other listings on realestate.com website - 2 bed 2 bath units in a luxury apartment complex. I had 1 person apply sight unseen before the first open inspection.

I think I'll adopt DT's way of doing things - have people apply first, suitably qualified applicants will be contacted for inspection (and to be honest the property in question was an hour away from my home - I didn't want to do the 2 hrs of driving back and forth for each potential party to inspect when I already have a dozen suitably qualified applicants; renters jump through my hoops - don't make me jump through your hoops!)

 

You would be referring to my post I guess Our IPs were/are under-priced for a reason. The places have never been vacant. I have seen rental properties in my suburb remain vacant for up to 6-8 weeks because of high rents and poor condition. Then the REA/LL start reducing rents $50-100 a week until it is finally rented out.

We still make a significantly higher return (2.7% net as opposed to 1% average for 4 bedroom, stand alone homes in inner-eastern Melbourne). They're all within 5-15 minutes from where we live and so self-managing them makes it easier. But I would have definitely considered professional property managers to manage them if we were not retired or if the IPs were further out/interstate.