rental market

[geminizin]

In Auckland or more specifically North Shore, how is the rental market? if you own a property, what kind of occupancy rate would you expect, like 90% of times you can get tenants? Or maybe in terms of 52 weeks, how many weeks do you expect to have tenants? Cheers.

[xris]

North Shore is 51 weeks and 2 days.

By the airport expect only 50 weeks and 3 days.

Gem, forgive the sarcasm but the question is meaningless in anything but a purely academic sense.

xris

[Green Fish]

Bit difficult to predict the future (and the weather) but definitely don't do your sums assuming that you'll get 52 weeks of rent every year. I'd assume 50 weeks per year (even down by the airport).

[geminizin]

I agree it varies house by house but a general idea about the rental market would still be very helpful for financial planning. If you can expect the property to be nearly always occupied (95&#37, the decision you make would be very different from if you need to expect vacancy half of the time (50%).

About the future (or near future), is the rental demand going up or down? How does weather come in the play?

Thanks a lot for your guys feedback

[Harbour Boy]

Where are the stats?

North Shore is 51 weeks and 2 days.

By the airport expect only 50 weeks and 3 days.

Gem, forgive the sarcasm but the question is meaningless in anything but a purely academic sense.

xris

Xris if (and I don't doubt you are correct) the figures quoted are available, where are they?

My experience for my North Shore properties are about four - five weeks a year vacancy. The properties are in good condition we do take advice and charge a fair market rent for the areas backed by a couple of appraisals and we do a bit of remedial work when a tenant moves out which accounts for a bit of the down time.

However, I am interested in the statistics if you would let me know where they are.

[Jumpin]

Seems your wit is wasted xris

[k1w1]

wit? Sarcasm is the lowest form of humour.

You're right though - it was still missed.

[Green Fish]

Not guilty! I didn't miss it.

I'm coming around to exnzpat's theory that xris is a woman. Late 60s. Degrees in commerce and law. Never married.

[Dean@Massiveaction]

Gem I'd work out your numbers based on 4 weeks vacancy PA.

[Steve Netwriter]

Mmmmm, shouldn't you work on a best case AND worst case prediction.
So, what would happen if you had 100% occupancy, but also what would happen if you couldn't get anyone at all.
Then apply your own judgement about the probabilities of those outcomes.

Just a thought.

[xris]

So, what would happen if you had 100% occupancy

You would lose money. Better to have 51 weeks occupancy.

xris

[emmajane6]

A good quality property in a nice area will always rent well, and don't be too proud to drop the rent if you need to, nothing more expensive than a vacant investment property!. I just had a unit sit vacant for 2 months because the pm was sure the market could meet the higher rent. I told her to lower it but she took ages to do it so i fired her and found someone else who had it rented within 9 days with no advertising, she had a tenant moving from a rent by room situation who wnated her own place and ironically i ended up getting the high rent as initially predicted, which was great cause i'd budgeted to receive $30 less a week. In saying that I was prepared for the lower rent and its great knowing i have a tenant, finally!!

[xris]

Planned........$400/52 week........$20,800/annum

Got.............$400/42 week..........$16,800/annum........sleepless nights

........

Planned.........$370/50 weeks.........$18,500/annum

Got.......$370/50 weeks.........$18,500/annum...........sweet dreams

xris

As an irresistable dig, you could pay $2,999 to Richmastery robots to be told that my second figures are all wrong while listening to him talk for a weekend about how my first figures are correct. All I ask is a $100 donation from anyone reading my post, creditted via PTalk.com.