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Posts Tagged with tenant marketing Brisbane

Posted by admin on 14 April 2010

The latest rental stats have been released and they help explain the large number of rentals currently available. Here’s our Research team’s media release:

Brisbane’s rental market has had a massive boost, with over 1100 homes added to the rental pool in the first quarter of 2010. According to new Residential Tenancies Authority stats the past year’s decline in the number of rented homes has finally stopped.

Bees Nees Research Managing Director, Rob Honeycombe says investors have replaced first home buyers and are offering Brisbane’s tenants more choice.

“Investors have been sitting on the sidelines and during 2009 the rental pool just continued to shrink.  There’s now a lot more confidence in bricks and mortar and the RTA stats show property investors have started to dive in,” Mr Honeycombe said.

The RTA track all rental bonds and across Brisbane the total leapt by 1145 in the March quarter. Mr Honeycombe said this data followed this week’s ABS finance stats which showed investors’ share of lending is growing strongly.

“The inner city has been the standout, with 693 extra rental homes added since the start of 2010. That’s more growth in a quarter than we’ve seen since 2006.”

Mr Honeycombe said rents had mostly showed small gains, with Brisbane’s median 2 bedroom apartment rent now at $365 per week.

To get the latest median rent for your suburb visit www.WhatRentMyHome.com.au

Posted by Rob Honeycombe on 23 March 2010

Brisbane homeThe kitchen benchtop was red, the window frames were a metallic red, the tap handles were red, the curtains red and yes, even the toilet seat was red. This lady had a definite favourite colour!

Unfortunately we were trying to sell the house and despite a fair price and vigorous ad campaign no-one could see past the red. It was pretty much impossible to. And that’s why your selling agent or property manager will recommend “real estate beige” for your wall colours pre sale or leasing. It’s safe, it can be dressed up with darker and striking furnishings, it offends no-one and of course you can “move straight in” as the ads say.

But here’s the new twist.

White. The ceilings usually are, but now it’s the benches, the wall tiles, the vanities, the appliances, the curtains, the coffee table. Even the fluffy little almost-dog that’s lying in a corner (on a white rug). The white floor tiles are massive (who will win the ‘biggest tiles’ title and be done with it?) and have that impossible sheen to them.

Agents love these properties because they can use words like “crisp, canvas and clean-lined” in the same sentence. Their photos look like the pages of a designer magazine. And they don’t have to apologise for red toilet seats.

But is it just us or do you have trouble imagining yourself living in a home like that?

Of course plenty of good property advertising is about aspirational marketing, showing what life  can be like if you just buy this home. Couples start holding hands again, the man wears a tux and his wife looks longingly at him over the flute of impossibly expensive champagne. But we digress!

Home buyers do have a desire to live in a magically clean, clinical and ordered world. But what about some personality too? To me a favourite chair, even a slightly worn and out of fashion one, says “I like sitting here”. A rubble of toys (tidy!) says “This is a family home” and a sauce-spotted recipe book says “this is a kitchen where you’ll love cooking”.

One agent we know tells sellers to put away personal photos, trophies and similar so buyers can more easily picture themselves in the home. What rubbish.

Clean and tidy, yes. Uncluttered and with a sense of space, definitely. But for our money we say a home is a home. When you go to sell or rent your property don’t be afraid to show some of your personality.

Unless of course you love red…

Posted by admin on 22 February 2010

Professional internal imageAs an agent we’re given the property you own, that you spend your hard earned dollars keeping, and you trust us to do our very best to manage it.

Our “very best” can be a range of things, so make sure you choose an agent for both their key skill sets: Letting & Management.

Bees Nees gives every new landlord a big gift for coming on board:  innovative and eye-catching promotion. Our promotion of rental properties is absolutely outstanding compared to most of our competitors (to be honest I have to laugh at many rental advertisements I see, they are a joke!).

Firstly, we organise a professional photography shoot. They look fantastic, even I can’t make a penthouse look good on a $99 Canon.

Secondly, we organise a drawn floor plan. So the tenants can imagine life in the home before they call us.

Thirdly, we write an ad that leaves nothing to guesswork. The facts in full so we’re making your home the easy choice on a long list of competitors! (don’t leave something out that you know tenants will ask about, or they may just call about another property!)

This is not rocket science. This is simple, informative and time saving for your tenants.

So if we create a cool ad, more people will click on it.  If we give them the information they need your home will be first choice. Then if we show them and make the process easy (24 hour turnaround), they think “Geez I’d love to rent from Bees Nees” and hey presto you have yourself a tenant.

We also know that once have a tenant, there is no way you can trust that the tenant will have  gorgeous furniture. Come time to find the next tenant, we have the lovely photos from the start!

Posted by admin on 12 February 2010

Throwing around cashYou should all be fully aware of the new Act we are now following since July 2009, but have you as a landlord or tenant noticed any of the changes?

One of the first things we must do, when appraising a property for rent and providing landlords with information about property management, is set a listing price and marketing campaign. Since the introduction of the new Act an agent is unable to push for rent bidding. So, if we have 5 applications that are all excellent, we cannot start asking them all for their highest offer and high-five the landlord when we get more than we really budgeted for (and more than it was really worth!).

If a tenant offers a higher figure, for example they might be in a huge rush to move or they have a pet, then we”ll take it to the landlord for their consideration, but we can’t tell the other applicants so they can erupt into a money throwing fight.

So if you want to get a tenant, quickly, with good references, and have a choice of tenants to pick from… price it right! We’ll work hard to get you the best rent possible but don’t set it too high and wait for the tenants to negotiate because they’ll just choose something else.

Posted by admin on 18 November 2009

An RP Data report this week gained a lot of media attention, advising of a rent jump in West End of 39% during the September quarter.

This is sensationalist and not correct.

Many inner-south landlords have felt first hand the truth of a market that is flat, and in some cases, slightly down.

Rents on established homes and apartments are, for the most part, not increasing. What is increasing is the number of brand new and near new property on the market for rent. Therefore, higher advertised prices than what we have seen in the past. Not higher prices on the same property. The fine detail of RP Data’s report confirms this – but was not given the emphasis it needed in the reporting!

These brand new property owners have paid a high price for these stunning apartments with city or river views. They’ve budgeted the amount of rental income they need to support the mortgage and they may not be achieving it.

In some cases this influx of brand new apartments, and not enough demand from tenants requiring luxury property, have created some vacant property on the market.

The investor with a 5 or 10 year old property around the corner cannot expect their rent to increase in these circumstances, especially if the new stock is not flying out the door.

The best  measure of rents is the RTA’s report on what new bonds are lodged each quarter. And for the record in West End’s postcode in the September quarter 2 bed apartments dropped 2.2%. Read our Market in a Nutshell report for West End.

Tenants want new, modern, spacious apartments with air conditioning and off street parking but if there are loads of apartments to choose from they’ll quite frequently attempt to knock down the price and try new negotiation techniques on the property manager!

Posted by admin on 17 September 2009

So your neighbour is pulling in $500 per week in rent and you’re only getting $480 for a comparable property. What’s better for you financially? To get the best possible rental price, or reduce the vacancy of the property?

Let’s compare:

  • $500 per week for 6 months is $13,000
  • $500 per week for 6 months but with a vacancy of 3 weeks is $11,500

versus:

  • $480 per week for 6 months is $12,480
  • $480 per week for 6 months but with a vacancy of only 1 week is $12,000

Of course, your agent wants to get you the maximum price for your property because they receive a percentage – the more you earn, the more they earn!

But, leaving your property sit vacant for more than a week or two can be more detrimental to your bottom line than you think.

People also talk about the benefits of keeping your tenants happy by only charging them a sensible rent and not pushing their limitations too much. This can be true, but this is really about you. You own investments for your own benefit, not your tenants.

So do your calculations and have a game plan in mind for when your properties become vacant. And most importantly of all, use a property manager you trust and who knows the market.

vacancy and rent

Posted by admin on 10 September 2009
This is a "corporate-looking" apartment!

A "corporate" apartment.

There are a thousand too many 2 bedroom, 2 bathroom, fully furnished apartments on the rental market right now. There are many factors that lead to supply exceeding demand, but I’ve seen a major drop in the enquiry from ‘corporate tenants’ – which is when the tenant has their boss, or their company, paying their rent. The company provides an accommodation allowance for the staff member, often as an incentive to take the new position within the company.

With the job market softening a bit, the company HR team find they have enough applicants for the jobs they’re offering and they don’t need to offer these incentives right now to get the right staff.

These fantastic ‘corporate’ tenants are disappearing and enquiry is not coming in from this normally active source. And for some landlords the hopes of this seemingly perfect scenario are unrealistic. The thing is a company can go into administration at any time, or cut short a job contract or a project. A company can walk away, call it liquidation and you can’t stop them. A company won’t pay any more in rent to you, and their staff member won’t take better care of your property and their expectations of the premises are similar to that of a hotel – consumable.

I get enquiry from professional couples and wealthy families moving interstate, changing jobs, selling and buying, waiting for their dream home to be built and I get sisters who’ve lived in their apartment for years and the owners selling and they need a new place, and I get single men who need a special kind of garage for their Porsche! This is what I want in a tenant, not a company lease with a chief technical officer with no name!

These are all excellent tenants who care for their home and treat it as their own. They know you are a person and they respect your property. They often have their own investments and they know what the expectations are.

Tenants in the inner-city want a nice lifestyle and they’re not afraid to pay for it. Corporate’s want a bed, and a fridge, and a cheaper-than-$195-a-night hotel room.

Don’t worry about tenant selection, we’ll get it right. The market is still okay and rent will come in either way!

Posted by admin on 27 August 2009

apartmentsMany landlords I speak to with vacant properties are quite concerned about how fast a tenant can be secured and they seem to forget to ask me any questions about the ‘management’ of the property.

When you let your property you pay a letting fee, usually equivalent to one week’s rent. For the six or twelve months following that you pay a percentage of the rent for the management. Why is it then some landlords choose to pay someone both these fees without being concerned about their abilities to do the rest of the job?

Consider this: if a letting agent wants to concentrate on all their ability in getting a tenant faster, which tenant are they choosing for your property? I’ll happily talk to you all about our success of renting property quickly and for a great price but my job doesn’t end there. You’re paying us for a whole lot more and you should be getting what you pay for.

The letting process is the just one part of the property management process. Make sure you get what you’re paying for.

Posted by admin on 2 July 2009

Did you know that by featuring your property on realestate.com.au you will attract 4 times the views by prospective tenants. Imagine your business now and imagine 4  times the customers! A “feature” property listing is a simple upgrade by your property manager so the listing appears at the top of tenants’ searches. It costs a tax deductible $95.

Posted by admin on 25 June 2009

One of the best ways to ensure a minimum vacancy is to have your property freshened up for the first inspection and this can be done with a simple clean and by installing an air freshener device. A ‘sparkle’ clean (a professional clean on an already tenant-cleaned property) can be as little as $100, but it will give the property that ‘fresh and clean’ feel. Ask your Property Manager to install an air freshener, or have them spray the property prior to tenants going through – you’d be amazed at the difference!