Finding it very hard to rent out property

[TomW]

We currently have 8 vacant flats and houses in Northland. Finding it very hard to rent them out. All rents are below market medians/averages and all are renovated. We simply are just not getting many calls let alone people viewing. Currently advertising via sign, trademe and local paper.

Anyone else in the same situation?

[Perry]

Northland was never a very 'buoyant' area,
so you're probably experiencing the real part
of the recession, rather than the mirage that
part-time politicians see.

Having once been 75% empty, I can relate!
It was a finger nail biting time, but it passed
and the end-of-year figures were sort-of OK.
Fortunately, there's never been a repeat.

I hope you have a change of luck, soon.
.

[TomW]

We have owned many for over a decade. Used to get 50+ calls per night per property. Now getting about 5 a week in total for all 8 properties.

Just saw the long term interest rates fall again today. Might be a good time to start putting some low ball offers on some more investment properties.

[TomW]

Northland was never a very 'buoyant' area,
so you're probably experiencing the real part
of the recession, rather than the mirage that
part-time politicians see.

Having once been 75% empty, I can relate!
It was a finger nail biting time, but it passed
and the end-of-year figures were sort-of OK.
Fortunately, there's never been a repeat.

I hope you have a change of luck, soon.
.

75% vacancy. How many units/house do you have under control?

[drelly]

Hi Tom,

I was talking to a PM the other day about the same thing. They said they have a lot of vacant flats even at low rents. I suspect that people who would normally rent a flat on their own are now sharing a house to save money.

[Jumpin]

Hard times. Dolf de Roos would change the name of the apartment block to something like "The Palms" and then put the rent up. (better class of tenant)Telephone won't stop ringing!!
:-)

[Keys]

Having once been 75% empty, I can relate!
It was a finger nail biting time, but it passed

Did you ask for a statutory declaration on smoking during that time Perry?

[Perry]

Can't recall. One was a commercial lease,
anyway - even though the same non-
smoking restriction applies.

I need to qualify what I said, earlier, in another
thread in which smoking was the focus.

Adverts say (something like) only available to
non-smokers. However . . .

On the specs sheet given to (really) interested
prospects, the requirement for a Statutory
Declaration is detailed. I provide a blank for
applicants to complete. As all successful app-
licants execute the tenancy documentation
at my lawyer's office, the signing of the SD
is done at that time.

The tally is two liars in approx. 10 years.

I also have the anecdotal perception that
the idea of having to do the paperwork at
a lawyer's office has a sort-of sobering
effect on ahhhh, shall-I-say,the more
doubtful prospects.
.

[Keys]

Residential or commercial tenants Perry?

[Perry]

The two liars? Both residential.
Signing @ lawyers? All.
.

[Property Man]

Hey Tom W,

Try writing an interesting and appealing ad on TradeMe for your flats to attract potential tenants. Also look at withdrawing and relisting your properties on TradeMe if you have not rented them and the visitor count gets high as people start to think that the property must be gone.

Regards
Aaron

[revdev]

How many of the flats are in the same block Tom?

[The_Dog]

It sounds like you are trying to rent them yourself. Have you thought about using an Agent?

I have 100% occupancy at the moment and have not had any significant period out of action for the last 14 years (other than for reno). I think the Agent likes me so it may be a relationship (trust) you have to build before the Agent puts you (or rather, your property) at the top of the list, but it's something to consider.

TD

(PS - My properties are in Auckland / Hamilton, so it might be a location thing as well)

[Orkibi]

in Northland.

In is a location thing - and also size thing how many bedrooms are the flats? How is unemployment doing in North land?

[Bluekiwi]

We have owned many for over a decade. Used to get 50+ calls per night per property. Now getting about 5 a week in total for all 8 properties.

Just saw the long term interest rates fall again today. Might be a good time to start putting some low ball offers on some more investment properties.

Whats gone down, cant see anything myself, 2 year rates last week down to 6.69%, is that what you mean.
I am watching the 2 year rate like a hawk at the moment.