We have a problem with tenants in a small country town. The rental down turn and the time of year means there is a downturn in demand. We have a property which is good tidy 3 bed but lacks a garage and landscaping. It was empty for 8 weeks until June until we got good tenants - who pay, are employed and have no kids/pets. Now after only about 6 weeks they have given notice -want somewhere with a garage - pointed out to the PM that whentthey moved in there was no sign of a garage - she said at theat time there were few avaiable properties -but now there are number around. When we purchased the propertylast year we bought it with a view to adding garage plus landscaping when we needed to - at the time the demand was so high we had a tenant before the property settled. The PM says that a garage will not probably add to the rent, though it will probably improved rentability. So I am looking at paying approx $9k for a double garage but a wait of 2-3 months because of the current building boom.
At the moment I'm thinking - get the garage done (we have the funds to do this) . Drop the rent $10 - $15 / week while the garage is going in . Put the rent back up to the current level ($150) when the garage is finsihed and do a rent review in February (when demand is better ) .
I will not get the immediate return on my investment from rents but it seems to me worth it in terms of CG and rentability. Anyone else go any bright ideas ?
At the moment I'm thinking - get the garage done (we have the funds to do this) . Drop the rent $10 - $15 / week while the garage is going in . Put the rent back up to the current level ($150) when the garage is finsihed and do a rent review in February (when demand is better ) .
I will not get the immediate return on my investment from rents but it seems to me worth it in terms of CG and rentability. Anyone else go any bright ideas ?
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