Rental Result Differences
A Case Study by Lee Bouy
MRE take great care in understanding the market and the dynamics that shape rental returns.
We were recently in touch with a landlord whose apartment in Northcote was achieving significantly lower rent than others in the same building. With their previous agency, they’d unfortunately experienced a string of tenancies (who’d taken over leases and resigned) with no rental increases relative to the neighbouring and similar apartments.
The property is a two-bedroom apartment, built in 2014 and is approximately 84sqm.
When the current tenant fell behind in their rental payments and the owner was approaching a vacancy period, they reached out to us to see what we could do to help.
The owner gave us instructions to act on her behalf, we went to see the apartment and immediately created a plan to ensure minimal loss of income.
Over a couple of weeks while the tenant finished their lease agreement we arranged inspections and advertised the property online, implementing our 30-day leasing plan. We had the first open for inspection 48 hours after and received three applications for the apartment at the asking rent of $550 per week.
Tenants were secured on a 12-month lease after just two opens and one week of advertising, achieving a $90 per week or 19.5% increase in rent for the landlord.
After accounting for the difference in management fees the owner will be receiving $3,256.80 extra in rental income per year moving forward.
If you would like Melbourne Real Estate to assist you in reviewing returns for your rental property, please contact Lee Bouy on 0419 411 862 or firstname.lastname@example.org and please share with anyone you know that could benefit from our services!