Should You Be Renovating To Increase Your Rent?

Host: Are you better to try and improve it or just let it go to the lowest bidder.

Paul: Yeah it’s a really interesting one because I mean it comes down to where that problem is located in eastern suburbs of Sydney, as much as the capital growth side of things is flattened out vacancy rates are still very low and they have remained low forever and a day. So ultimately my question is what’s the feedback been from your property manager because if that property’s been vacant for more than a month in that market; A it’s priced completely incorrectly or B the property managers probably not giving that feedback that they should either be looking at changing a couple of the potential façade aspects of it air conditioning mod cons. Possibly but it probably comes down to pricing and potentially also feedback from the property manager. I’d be getting on the phone to them very very quickly because to me that shouldn’t be happening.

Host: Well let’s say it is an area where vacancy rates are very low and it’s a very in demand area, but they are people who are pretty selective as well incorrectly you know upper echelons and they probably don’t want something that’s falling down around their ears.

Paul: Yeah to a degree but you also get a lot of house sharing in those markets and especially for those probably people who are potentially graduates in graduate salaries. So house sharing is quite prevalent is those lower probably lower modern- conned finished properties potentially the ones that do attract those types of tenants which is fine because typically they still treat your property okay and sometimes throwing extra money after a property which still is going to be probably the bottom end of the barrel might not be the best money spent when it comes down to what the end outcome is going to be given those assets are really going to be depreciable either.

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