We know what is squeezing the life out of the rental market

[cube]

What if it hadn't been the carpet that needed replacing, but the roof? Would the market have withstood a, say, $150 rent increase?

[McDuck]

Are you just taking the p1ss?

in case you aren’t - the property was of a certain standard. The price to rent the property at that standard was $x.

The carpet in the property was satisfactory but far from new. I made the decision to invest $Y into the property in the form of new carpet. My business needs to make a return on that investment of $z/wk

The new advertised rent is $x+z

If a potential tenant wants a property of a lower standard then from what I read in the newspaper there are plenty about.

No.

not taking extracting the urine.

You want to improve the property for your own reasons, then that's your reward.

You want to replace the carpet with tissue paper and have to replace it every week, then that's your decision and your cost, don't expect the tenant to pay for your poor management choice.

If you decide to replace all the carpet with gold threaded lama wool pile, again, that s your reward right there.

[Don't believe the Hype]

I don't understand your thinking at all on this.

How does having no carpet put a tenant under financial duress?

As long as there is some form of dry solid flooring.

Wall to wall carpet is an odd luxury.

Designer places tend to have large white tiles, or sealed wood and Persian rugs in vintage Holmes.

For a bulk of the time the species has been happy with dirt floors.


Perhaps you could relieve financial duress by having no carpet and offering them lower rent?

Are you just taking the p1ss?

in case you aren’t - the property was of a certain standard. The price to rent the property at that standard was $x.

The carpet in the property was satisfactory but far from new. I made the decision to invest $Y into the property in the form of new carpet. My business needs to make a return on that investment of $z/wk

The new advertised rent is $x+z

If a potential tenant wants a property of a lower standard then from what I read in the newspaper there are plenty about.

[McDuck]

One question.


Remember how there was a massive state housing building trend going on after the war?

To give something back to all those men and families who had faced the forces of world domination and paid with their lives and youth?


Were those same houses the ones property investors were able to buy when the govt of the time decided to asset strip them form their books?


Is state housing the source of the speculation market? Is govt asset stripping the real Govt part in this story.?

[McDuck]

thats a fair comment.

I guess the point I was making is that I could have put potential tenants under more duress by listing at $395/wk without carpet and in this market would have easily tenanted the property. I chose not to squeeze the last dollar out of potential tenants however when i improved the property I priced it accordingly.

I don't understand your thinking at all on this.

How does having no carpet put a tenant under financial duress?

As long as there is some form of dry solid flooring.

Wall to wall carpet is an odd luxury.

Designer places tend to have large white tiles, or sealed wood and Persian rugs in vintage Holmes.

For a bulk of the time the species has been happy with dirt floors.


Perhaps you could relieve financial duress by having no carpet and offering them lower rent?

[McDuck]

I don't think Wayne is wrong, at all.

I'd go so far as to say that neither of you are right or wrong.

What the "market will bear" will differ, depending on a broad range of factors.

Whether it's a new carpet, the location, school zone, repainted ceilings, or whatever, the 'right' price is what a willing renter and LL agree on, without any external circumstances duress.

Just how much duress the present gummint is causing is a moot point, of course.

That's not how monkey brains work Perry.

First the monkey brain looks at all the options.

Then picks the best one.

The external factors operate on all the options, so adjust the broad value the monkey puts on a thing.

The bit you are talking about is the fine tuning bit at the end.

Said monkey has selected a bunch of bananas he likes the look of, and now is choosing what one to take.

[Perry]

Fair's Fair

. . . I could have put potential tenants under more duress by listing at $395/wk without carpet and in this market would have easily tenanted the property.

As Artemis has observed, that price seems to be a fair price "in this market."

How many weeks empty would prompt you to reduce the asking rate?

I put that with my tongue-in-cheek, because . . .

About a year ago, I had a vacant rental. A learned local PI I spoke with told me that the price I was asking was too low. He opined that rural rentals like that were scarce and I should price it accordingly. So I increased the advertised rate more than I would usually do, when there is a change of tenant. I had no trouble getting a new tenant.

But I don't accept that as confirmation of the broad or wider state of the market.

When one has an available rental that's a bit outside-of-the-norm, rental rate statistics for other rentals that are generically similar become meaningless. There are too many factors involved. In the case I've just described, I accept that I was likely lucky.

At times, I've struggled to fill it. Yet on one occasion, I had 220 applications! Fruit picking season starting and the local Tech College opening for the year meant it was impossible to even hire a caravan, at that time. The proverbial "perfect storm." That's only happened once.

Meet the market has an interesting and curious ring to it.

[artemis]

thats a fair comment.

I guess the point I was making is that I could have put potential tenants under more duress by listing at $395/wk without carpet and in this market would have easily tenanted the property. I chose not to squeeze the last dollar out of potential tenants however when i improved the property I priced it accordingly.

Operative words 'in this market'. If available rentals decline, well ECON101. The plan to fix renting sort of recognises that but their answer is for more public housing. Meantime....

[Don't believe the Hype]

I don't think Wayne is wrong, at all.

I'd go so far as to say that neither of you are right or wrong.

What the "market will bear" will differ, depending on a broad range of factors.

Whether it's a new carpet, the location, school zone, repainted ceilings, or whatever, the 'right' price is what a willing renter and LL agree on, without any external circumstances duress.

Just how much duress the present gummint is causing is a moot point, of course.

thats a fair comment.

I guess the point I was making is that I could have put potential tenants under more duress by listing at $395/wk without carpet and in this market would have easily tenanted the property. I chose not to squeeze the last dollar out of potential tenants however when i improved the property I priced it accordingly.

[Perry]

No doubt you will ask for whatever rent the market will bear.

This is where you are wrong.

I don't think Wayne is wrong, at all.

I'd go so far as to say that neither of you are right or wrong.

What the "market will bear" will differ, depending on a broad range of factors.

Whether it's a new carpet, the location, school zone, repainted ceilings, or whatever, the 'right' price is what a willing renter and LL agree on, without any external circumstances duress.

Just how much duress the present gummint is causing is a moot point, of course.

[McDuck]

Would you mind if I dipped my toe in.

You may be oversimplifying the relationship between price and quality.

The pop culture idea that the two are linked by some magical force of nature is not correct.
(Although in the natural world, it has strong correlation in some cases).


No, in groups of monkeys, social forces and conventions can produce many supply demand curve variations.


With an inelastic or slow supply response, you can get a failure of the price coordinate .. as well as a failure to produce a result that works for all participants and the overall sustainability of the particular system.


With your case, we see you are a decent chap.
Your sense of fair play and community has caused you to temper your greed.
Possibly your wealth has reduced the value of profit as compared to your pleasure in helping your fellow man.

By contrast we look at one landlord (who has been in the news of late).
His behavior is not at all similar to yours.
Possibly due to the conventions of his culture, or upbringing, he is in need of regulation from external forces, as his internal model is out of alignment with the way our society functions. (It's a curiosity to me to combine a red envelope with the idea of luck and its a powerful conditioning tool for the young).


Then there's that out of sight, out of mind factor.

[Don't believe the Hype]

No doubt you will ask for whatever rent the market will bear.
If you hadn't had to change a thing I expect you'd be asking the same rent.

I really don't think the customer expectation of an insulated, non-drafty product is unreasonable.
Warm - depends on the heat the tenant puts in.
Anyone reading some of the comments on these forums would get the feeling that landlords are a heartless Dickensian lot.

This is where you are wrong.

This week I advertised a property for rent for $375/wk, up from the previous tenant at $310/wk ( thanks labour govt for the nice bump in rent) a 3br 1br with 1xOSP. just repainted bathroom and ceilings and added a heat pump the property had been insulated last year.

Feedback from the PM and a few early prospective tenants said the carpet was a bit old. I replaced the carpet this week and updated the advert accordingly increasing the asking rent to $395.

I could have been cheeky and tried to advertise the property originally at $395 but it was a stretch and I doubt the market would have paid. Add carpet and it’s worth $395

Why would you think that there is no relationship between price and quality?

[McDuck]

I'd love to hear professional opinion from practising psychiatrist how and if it's even helpful to argue with clinically delusional and generally stupid patients?

Well, yes.
It would help you feel better to be able to express your frustration momentarily.

And temporarily give you a sense that you could possibly improve the situation that was causing you mental l discomfort.

But since you would be results driven, rather than driven by the need to assist your fellow monkey, then it would be a negative total neural memory trace for you the end.

AKA " Do not repeat procedure as it has negative yield".

Having said that, All results are of use with the right application.


Well, our times up for this week.
please pay my receptionist a banana and a bag of mixed nuts on the way out.


(kidding).

[AlFa]

Challenge them and they soon stop talking to you 

Hehe... Usually I get banned from FB groups for asking uncomfortable questions

[Sportsvee]

Does it mean landlords must shut up and wait for the beating? I don't think so

Challenge them and they soon stop talking to you 😈