Get The Price Right!!<< Back to Blog
In the current rental market it has never been more important to get the price right at the initial marketing of the property. Unfortunately we have not been immune to the GFC and have seen an approximate 5% drop in the rental prices being achieved. Although there may be a shortage of rental properties available in the larger cities we are seeing an over supply of rental properties on the Sunshine Coast and tenants have a lot of properties to choose
We have recently seen properties sit on the rental list for too long and unfortunately even though the price is dropped to meet the market eventually, the property becomes stale and overlooked by prospective tenants. Our most common enquiry comes from tenants searching realestate.com.au and new properties listed sit at the top with the properties that have been listed longer moving further down the list regardless of a price drop.
Landlords need to keep in mind that the investment is what income you receive for the year and every week the property is vacant you are losing money. Sometimes it is prudent to take a drop in the weekly rent and secure a tenant quickly therefore lessening your loss on vacancy. The following scenario may help Landlords when deciding to keep rents at a higher price, rather than reducing immediately and securing a tenant quickly.
Rental price $300pw – vacant for 6wks before finding tenant – 46 wks rent @$300pw = $13,800pa income
Rental price $280pw – vacant for 1wk before finding tenant – 51 wks rent @$280pw = $14,280pa income