New Segment; How Low Can They Go?

For our latest podcast segment, we'll delve into a distinct suburb each week, exploring the rental prices of advertised properties and uncovering just how much they deviate from the market rates. How much money exactly are these Brisbane Investors loosing?

One unlucky investor we found is losing $6000 per year on rental income. That is a record in this segment.

It looks like each other property we found the owners of these investments could be receiving an additional $4000-$5000 per year in rental income.

Properties further away from the city (Kallangur, Petrie & surrounds) are receiving more in rent for the same sized property.

My conclusion: Chermside needs better property management.

Tune in and discover why common mistakes, lack of understanding the rental market and poor photography are costing landlords hundreds of dollars each week. We promise you'll gain actionable insights that can turn your under-rented property into a high-yield investment.

In this quick episode I scrutinise rental listings in Chermside, Brisbane, revealing how better marketing strategies could significantly boost rental returns. 

Whether you're an experienced landlord or new to the rental market, this episode is packed with tips to enhance your property management strategy / avoid the unexperienced agencies and ensure your property stand out, direct from Exclusively Managed.

My goal is to provide you with an honest look at the Chermside rental market, sprinkled with a bit of humor and a whole lot of real talk, and even some cake!

So, tune in to get the full scoop and maybe a few laughs as we navigate the puzzling world of property management together!

If you have any questions or scenarios you would like us to discuss on an upcoming episode, please email samantha.eason@exclusivelymanaged.com.au or visit https://www.exclusivelymanaged.com.au/

Transcript

Speaker 1: 0:34

Hi, it's Samantha Eason here with Talking Property Management, and this is our new segment. How Low Can they Go? This is new. So we go through a suburb each week and we pinpoint some comparable properties that are advertised online and the discrepancies that we find with those advertisements whether it's a similar property, different prices, the price of the property maybe they could go a bit higher, just to give our listeners a better understanding of the market.

Speaker 1: 1:10

Now I'm going to be very honest. I'm doing this episode with a slice of cake, and I mean that literally. I'm eating a slice of cake, because this one is a fun one and I feel like we should have a bit of a party with it. Now, I understand it's not exactly fun for these unfortunate investors with choosing the wrong rental agency or property management agency. Maybe they just found one with the best, cheapest I should say fees. But I'm all about authenticity and providing you with all the information you need and not beating around the bush. So let's kick this one off.

Speaker 1: 1:55

So today we're looking in Chermside and there's a few different property types in Chermside. You can have like brand new, maybe they were previously knocked down, rebuilt, semi-modern, and then you've also got the post-war homes. So this one's a bit interesting because most of the post-war homes they're two. Very rarely are they three or more bedrooms, but they do have majority that are two to three bedrooms. Maybe previously someone's added an additional room or they've converted a room into a bedroom additional room, or they've converted a room into a bedroom. But we have a two bedroom, one bathroom property in Chermside listed for $625 a week and we'll say this very quickly, it's not very modern. It has had some very minor upgrades, that's carpet. The lighting doesn't even seem new. It does have air conditioning, so that's a plus.

Speaker 1: 3:05

If we look at a comparable property that has also just recently been advertised in490. And we have a similar house, literally two bedroom, one bathroom. This other one, two bedroom, one bathroom, for $625. And the property that's advertised at $490 is very comparable to the one at $625. Incredibly comparable. They're basically the same property just advertised by two different agents. That is a massive gap with comparable properties, Absolutely ridiculous.

Speaker 1: 3:56

So let us move on to the next property. We have a three bedroom, one bathroom, relatively modern, clean, tidy, I'd say it's okay. 515 per week, $515 per week. Our next one is a three-bedroom, one-bathroom at $500 per week. All roughly the same condition as the previous. And then we have Another one that has been already leased from what we could see, but it rented at $530 per week.

Speaker 1: 4:47

Three-bedroom, one-bathroom. So this is the three-bedroom category, the property that's listed at $515 per week. That could definitely be increased. That's ridiculous. The property that's advertised at $500 per week looks nicer than the property that was advertised at $515 per week and they are relatively comparable due to their overall aesthetics, looks, size, etc. And there is a $15 gap between each property.

Speaker 1: 5:33

A good enough market where agents can advertise and lease properties in line with other properties online. It sort of makes you wonder where they get their information from, because the person who, or the investor that has the property that's advertised at $500 a week, investor that has the property that's advertised at $500 a week, they would be really happy getting $530 a week. And again I looked, there was nothing in those properties where it outlined that there was recently a increase in rent. So the property has to be, you know, set at that price. The property has to be, you know, set at that price. But it is really unfortunate that we have found five properties today and four of those properties across the two bedroom and the three bedroom, all comparable to each of their own, have not been advertised at the correct price. Have not been advertised at the correct price. But my favorite and this is why I brought out the cake and I'm being honest, it's a caramel and chocolate cake my favorite is the two-bedroom listed online for $4.90 per week and the other property listed online for $625. The other property listed online for $625. I don't even want to do the calculations on how much that poor owner is losing, but you've got to think about it.

Speaker 1: 7:12

Chermside is filled with investors. I have multiple different unit complexes in Chermside. It's built up. You can get a two-bedroom unit without a pool in the complex for $550 a week in rent. How are you unable to get a bigger house with more space for less than that amount? This is what I just can't understand with other agents is how they're either not being trained or no one's actually understanding the market and the cost of properties. There is also a big possibility that people are afraid of getting abused for advertising properties at such high rates. But there are units in Chermside that are advertised at $550 to $650 that are comparable to each of their own units. You have more size, you have more space in these properties and in these houses that are advertised. They may not be as modern, but they're about $100 less per week than an 80-square-metre unit. Makes no sense, absolutely makes no sense, why agents are still doing this and why investors are falling for these garbage spills.

Speaker 1: 8:50

About high returns and great property management Between you and I. I've taken a management off two of these agencies previously. Incredibly poor service was the reason those clients came across Really bad communication, thousands of mistakes found within the tenancies, tenants walking away scot-free. I'm all for fair management. It's incredibly important you make sure that your tenants feel like it is their home while they're living in it, because look, I'm just going to say it they are living in it, it's their home, to make their home. It does not give them the right, though, to go outside of their bounds and do things that they should not be doing, but that is, unfortunately, up to the property manager to make right, but I do find it really interesting.

Speaker 1: 10:01

One other thing, though these properties, they're front-end photos. This one, you can't even see the house. It's all trees. Surely there's a nicer photo inside that you could have picked. This one looks like, yeah, it's just part of the house. They really need to step up their game with their advertising. I just don't understand why such a small property is listed for such a low amount in Charmside, like the land is worth $900,000. Why is the house only being rented out at $490 a week? Makes no sense to me. But anyway, thank you for another episode with Talking Property Management. Talking property management, I'm eating a really delicious chocolate and caramel cake. I'm going to be very honest, I'm not a baker. I got this from Woolworths and it was about $8 for a very tiny cake. I highly recommend them. But I do look forward to doing another episode within this segment and and next week, shoot through your recommendations of suburbs I should dwell into. I can't wait. Thanks,