Rental Property Owners

In sales, “price and presentation” are considered two of the essential elements of achieving a sale. In Property Management, it used to be, “place an advert” in the newspaper, later the websites and “They Will Come”. No one really worried as demand had been constant until the current market place!!

Now there is reason for concern, demand has dropped and with more properties being built for investors we have to change our strategy. Successfully leasing a property is also based on the same elements of selling, after all, that is what we are really doing – selling a lease to a tenant.

 

Times Have Changed!

Tenants are effected the same as buyers, by “emotion.” Why would a tenant choose to even look at a poorly presented home that needs painting, new floor coverings and an unattractive garden over another home that does? Asking the same rent!

 

Step One

Make sure the property is priced right and has presentation.

 

Step Two

How Do We Get Tenants To Inspect Your Property?

Ok, the internet you say- but it is more than just that! From sales we have found there is a direct relationship between the rate of inquiry from the quality and quantity of the photographs on the websites.

 

“October Special”

For an inclusive cost of $150 we can arrange professional quality photographs and re list your own property on web sites so it is in a prominent position.

In sales we always arrange professional photography which is at a reasonable cost. Recently we sold a property and the new owner requested the use of the existing photographs used when buying to be used on the rental web sites. Not only was an excellent response received, but the property leased for more than the asking rent!! Please Give This Consideration

 

Honest & Genuine Advice I have recently received some complimentary comments from property owners. Why? Because I talked myself out of a job! In newsletters this year, particularly recent ones, I have advised that if you don’t have to sell – don’t. Whilst in the immediate future our sales numbers may be down, in the long term I believe property owners appreciate the honesty and will return to someone who puts the clients’ interests ahead of themselves. I have been in Real Estate 40 Years, seen the “highs and the lows”. If anyone can remember back to around 1982… that was a tough market. Banks had no money to speak of and finance approval (assuming you could get one) took as long as six months. Many of the sales people today have never heard of “Alternative Finance” and for those who have not been through “tough” times, they have little knowledge as to how you have to change to suit the existing market.

 

2015 "PROPHETS OF DOOM"

The vultures are circling, doom and gloom is on everyone's lips, the mining industry has gone, The economy is “shaky” and the real estate values are heading “south”!!!

Sorry, but I have heard all of this before and on more than one occasion in my 39 years of real estate. Funny, no one is mentioning the low interest rates??? Ok, there is no doubt that we have had, and will continue to have in 2015 a market “correction,” but to start crying “the sky is falling” is an over reaction.

What has become apparent is that we have lost some investment buyers and ”fly in/fly out’s”, But the main source of buyers the owner/occupier - still lives on!

The rental market has cooled off and this is reflected in the period of time properties remain vacant. However, some land lords are holding onto the “heady” days of 2012 when demand exceeded supply. Sorry, but it is now reversed, and tenants can now negotiate with you, just as in 2012 when they were forced (due to demand) to pay excessively high rents.

There are many investors who would be extremely concerned at present. They purchased “off the plan” in a much more “bullish” market and are now coming up for settlement with poor prospects of (a) getting a tenant and (b) receiving any where near the rental figures that were being achieved at the time of signing the contract!

“2015 PREDICTION”

For residential real estate, I see us heading for more of a market where buyers will be more likely to be owners/occupiers. Yes, there will be some disappointed sellers, particularly investors that wish to simply sell and not re- invest. However, as I have said many, many times, it is irrelevant when you sell, as long as you buy in the same market.

Interest rates in 2015 would appear to be going lower (Reserve bank) and I hope that the banks will pass this on to borrowers. (Shame they never do this for commercial loans).

SO HOW CAN I ACHIEVE THE HIGHEST PRICE IN 2015?

This is applicable to both sellers and land lords. It is simple, since you will be in more competition from other properties and because the buyer/tenant may well be going to live in the property - “presentation and appeal”, the “WOW” factor becomes even more important compared with a market where lack of supply was a determining factor of decision making. If need be, get professionals in to advise on décor, gardens and furnishing. This is commonly called “staging “ and the benefit of a higher sale price may well out weigh the cost.

 

THE MORLEY TEAM

 

Sales Team:

Max Comben          0419 955 665

Jackie Tomic          0400 988 358

Tom Flynn              0407 443 658

David Reid              0409 102 628

Angie Nguyen         0404 337 887

Fred Tindale           0413 448 866

Andrew Petersen     0412 575 883

Rebecca Johnson    0430 820 966

Jill Young

 

Property Management Team:

Margaret Vandenbergh

Giselle Marshall        0407 385 282

Hazel MacDonald     0415 110 005

Cheryl Newey            0408 748 769

Adel Visagie             0488 755 771

Jade Lines

Adena Douglass

 

I wish you and your family all the very best in 2015.

WHERE ARE WE AT?

Has the market slowed down? Yes it has! Whilst sales are still occurring, more in some price ranges and suburbs than others, both the median price and volume of sales for Perth Metro has decreased in the second and it is anticipated, the third quarter (ending September). However this is only applicable to existing housing.

Perth land median price was heading in an upward trend at the end of June and I cannot see any reason why this would have not continued.

Unit sales had “flat lined” in the first two quarters of 2014 and with the current supply available, I would expect this to remain steady. Although an abundance of units available may put pressure for sale prices to drop in the immediate future.

In regards to sales, we have seen an increase of “Days on Market” and although there was a small increase in the number of properties available at the end of June, it would not surprise me if that amount (particularly existing housing) actually decreased in the last quarter.

The rental market is showing signs of improvement with number of properties leased increasing with each month in the third quarter (information obtained from our own office only).

 

SO WHERE ARE WE GOING?

Ah, the “crystal ball” question? Well, (and this is only my opinion) I cannot see the market changing (sales) much at all in this current quarter. There is too much indecision by prospective sellers and as a result, the level of available homes for sale is low.

Now, normally this would push up sale prices, however there is also some reservations on behalf of buyers to commit in an economy (talking of Western Australia only) that is showing signs of insecurity. The situation in Sydney and Melbourne is very different with sales booming in view of the low interest rates. Don’t be surprised if the Reserve Bank steps in to slow that market down.

The rental market I would expect to recover in terms of the vacancy factor, however some rental properties that achieved a very high return 12 months ago, may have to re-adjust the asking rent to be attractive to tenants in the current market place (availability is much higher compared to this time last year).

In general terms, you could describe this market place as “normal” as much as normal can be, with a steady amount of sales and prices remaining constant (for now) and a rental market that although slow, is moving in a positive manner.

 

WELCOME ABOARD – Century 21 Rentmore

 

I have acquired this office from The Century 21 Wentworth Group. We are currently in the process to change and improve the operating systems to provide a much more “personal and local” service. The office is staffed by…

Trudy Burmaz - Manager

Victoria Curthoys - Assistant to manager

Cassandra Hodge - Property Manager

Symone Fisher - Property Manager

Anita Cross - Property Manager

Chanelle Carr - Administrator

 

LANDLORDS!

Lets get the tenant to improve your property!!! How you ask? Starting as from the 1st October we (each office) are going to run a quarterly competition (at my cost) and reward two tenants a $250 Bunnings Voucher (hopefully they will spend it on your property) for

a) Most improved garden

b) Best overall presentation

The tenants will be advised of this when they receive their inspection notices. If they don’t win this quarter they may win the next!