Huge demand for Auckland rental

[3Kings]

Hi, one of out tenants gave notice so we placed an advt on Trade Me on Thursday. Three days later at the open home 60 people turned up and 15 completed applications to rent. So far there has been 2,800 hits on trade me for the property.

It's just a bog standard 3 bedroom ex State (clean though) at $395 per week. Although there were some students they weren't the majority.

Anyone else seeing this sort of demand?

Stewart

PS signing the new tenant tomorrow....

[Propoholic]

Hi Stewart

Thats a good result, what area is your property in?

[Cliffy]

I've had stuff all for a freshly renovated 3brm in Mt Roskill.

[alhoon]

That’s huge amount of hits.
Once a month I jot down Trade me figures just out of interest not as any valued info, interesting to see number of sales in Auckland steadily climbing (up 800 from Xmas)and the number of rentals steadily dropping (down 600)this would show the slow down in the market for selling and that there is a shortage of houses to rent.
Or it could show that I have too much time on my hands.

Allan

[3Kings]

Hi Stewart

Thats a good result, what area is your property in?

Hi - it's in Mt Eden...

[Bodmin]

And in Wellington

I was similarly surprised with our rental in Lower Hutt. I only advertised on the free sites and ended up with three good applicants after the open home. The rent went up by over 10% in under a year and no one complained about the rent.

Cheers

[Dean@Massiveaction]

I am pleased and surprised to say that I don't have a single empty house at the moment, first time ever. 50 happy tenants!!

[freezinhot]

I was equally surprised over the christmas period to tenant 2 units I have.

I thought I would have to wait till at least the end of January to find anybody but people were lining up till boxing day to view the properties.

Bizzar!!

FH

[kieran]

3Kings,

Mt Eden is my "investing backyard". Sorry to say it but 3 brm rent at $395 is too low for your property which is why you got a flood of enquiry... (yes know exactly where your ppty is) Going rate is more like $450 IMHO.

Great news is that you are spoilt for choice with tenants so suggest you pick the best of the bunch and review the rent up in 3-6 months time.

P.S there is a current significant shortage of 4 or more brm ppties in Mt Eden available to rent (especially if it has 2 bathrooms which can command an extra $100+/week! Know this as have 2 x 4brm in Mt Eden in my portfolio and getting $800/week for a 4brm + 2 bathrooms (should be $850 now!) compared to $500 to $660/wk for 4brm + 1 bathroom)

[Monid]

That was my thought as well Kieran even from over here in Northern Ireland that rent sounds low for Mt Eden.

Cheers
David

[xris]

3Kings,

Mt Eden is my "investing backyard". Sorry to say it but 3 brm rent at $395 is too low for your property which is why you got a flood of enquiry... (yes know exactly where your ppty is) Going rate is more like $450 IMHO.

Great news is that you are spoilt for choice with tenants so suggest you pick the best of the bunch and review the rent up in 3-6 months time.

P.S there is a current significant shortage of 4 or more brm ppties in Mt Eden available to rent (especially if it has 2 bathrooms which can command an extra $100+/week! Know this as have 2 x 4brm in Mt Eden in my portfolio and getting $800/week for a 4brm + 2 bathrooms (should be $850 now!) compared to $500 to $660/wk for 4brm + 1 bathroom)

A few months ago I had fifteen viewings and twelve written applications. Another one in the same street came up a week later and I chose the same rent even though it was smaller. My second choice from the first property took it with only a two minute viewing.

Lesson? First property is under-rented. I keep telling others to be careful of doing this in the current /recent market and here I am doing the same. However, it can sometimes be difficult judging the rent correctly, especially if you've had the same tenants sitting there for years. Difficult, but not impossible.

FYI, property one comes off a fixed term at Easter and the excellent tenants what to stay...

xris

[3Kings]

3Kings,


P.S there is a current significant shortage of 4 or more brm ppties in Mt Eden available to rent (especially if it has 2 bathrooms which can command an extra $100+/week! Know this as have 2 x 4brm in Mt Eden in my portfolio and getting $800/week for a 4brm + 2 bathrooms (should be $850 now!) compared to $500 to $660/wk for 4brm + 1 bathroom)

Well it is more Three Kings than Mt Eden.... I guess the near new 4Bedroom, 2 Bathroom, Townhouses at $680 we have are looking a bit sad then.....

[lukasr]

Same in Avondale

We've rented a unit in Avondale a few weeks ago and had the same mad response - it was rented out within a day after about 30 people came through (and over 1000 hits on TM). We're also now wondering whether the rent was too low although have compared it to other similar units in the area and it seemed similar.

My take on it is that as investors get rid of underperforming properties, only owner-occupiers buy in the current market which leaves less properties in the rental pool. It's simple supply and demand really.

[whitt]

I got a letter today from my property manager and it appears the vacancy rate at Ray White Manukau is only 2%.

[cube]

Great news is that you are spoilt for choice with tenants so suggest you pick the best of the bunch and review the rent up in 3-6 months time.

Remember that on a standard tenancy, you can't review the rent in the first 6 months. If you have a 3-month fixed term, you'll be OK.

If its to be 6 months, remember to give 60 days notice after 4 months, so the new rent takes effect as soon as possible.

cube