I bought a 1 bed flat in Chch at the peak of the market. At time of purchase I was able to rent it out for $200 a week making it cash flow positive, but only just.
However the dodgy property manager ran off with 4 weeks rent and then the new tenant did a runner owing approx the same amount and leaving a lovely stash of drugs and prostitute-esque clothing in the flat and of course I could do nothing about this as I was/am overseas.
After writing off that loss (still searching for the dodgy property manager) I gave it to a reputable PM company who advised the rent needed to be dropped to meet the market by $40 a week - ouch.
After 6 weeks vacant (Winter 08, the winter of the Chch rental market's discontent) a new tenant was finally sourced. They lasted 9 months and paid rent on time however left the place in an absolute state, requiring the bond plus some to cover clean up/damages. My new PM had sourced someone to move in so it was only vacant for 2 days and this guy was great up until 2 weeks ago when they realised he had left the property (very cleanly i might add) and broken his lease and the property is now vacant for the 4th time in 18 months. I expect it will be vacant for a while as the rental market is still awful in Chch and it is the middle of winter. This flat is very nice, with new carpets, paint and curtains and is in a great location very close to town (Richmond).
I wish I could sell this lemon but it wouldnt move in this market and its on a high fixed rate that would be expensive to break.
If anyone has any suggestions for how to rent my lemon (I am considering heat pump) I would appreciate the help.
I will consider offering it furnished but my PM is against it so would need some guidance as to what is needed and may need to switch management if that is the road I am going down.
Emma - wishing she could make lemonade
However the dodgy property manager ran off with 4 weeks rent and then the new tenant did a runner owing approx the same amount and leaving a lovely stash of drugs and prostitute-esque clothing in the flat and of course I could do nothing about this as I was/am overseas.
After writing off that loss (still searching for the dodgy property manager) I gave it to a reputable PM company who advised the rent needed to be dropped to meet the market by $40 a week - ouch.
After 6 weeks vacant (Winter 08, the winter of the Chch rental market's discontent) a new tenant was finally sourced. They lasted 9 months and paid rent on time however left the place in an absolute state, requiring the bond plus some to cover clean up/damages. My new PM had sourced someone to move in so it was only vacant for 2 days and this guy was great up until 2 weeks ago when they realised he had left the property (very cleanly i might add) and broken his lease and the property is now vacant for the 4th time in 18 months. I expect it will be vacant for a while as the rental market is still awful in Chch and it is the middle of winter. This flat is very nice, with new carpets, paint and curtains and is in a great location very close to town (Richmond).
I wish I could sell this lemon but it wouldnt move in this market and its on a high fixed rate that would be expensive to break.
If anyone has any suggestions for how to rent my lemon (I am considering heat pump) I would appreciate the help.
I will consider offering it furnished but my PM is against it so would need some guidance as to what is needed and may need to switch management if that is the road I am going down.
Emma - wishing she could make lemonade
Comment