Hi All, Was at a property management seminar this week and the speaker said that she has heard that in Sydney one Real Estate office has introduced Rental Auctions. has anyone heard of this, and if so what are your thoughts???
That's just the stage of the property cycle we are in ... it will change. Only a couple of years ago landlords were offering holidays and rent-free periods for tenants - the rental market was that bad. Swings and roundabouts (as for the concept of rental auctions, I'm all for letting the market set the price, but I think it would be wise to not get greedy).
As a greedy landlord, sounds like a good idea to me . Welcome to the forum Jarrod , nice to see you here now !!!! David
Something different. Can only imagine this type of thing happening in certain pockets of certain areas, probably inner city etc. But hey, if it brings in a few extra dollars for the landlord/s, bring it on.
Simple demand and supply will dictate what method salespeople and PM's elect to use to move property, whether or not it be to sell or lease. I remember a few years ago, one of the lifestyle shows on TV filmed a few rental auctions, which reaped great results for the landlord. I don't see anything wrong with them at all- after all, at least with a rental property what you see is pretty much what you get. No need to worry about building/pest inspections and the majority of savvy tenants bring along the necessary paperwork/contacts info to fill in applications on the spot should they prefer a particular property. It's much like a tender system for sale, where buyers are invited to put their best offer in a sealed envelope and proceed that way.
I am with Sim. I would much rather get a good tenant then the absolute top price but only paid until the tenant figures out they can't really afford that rent. Maybe its just me but I like my property managers to assess whether the tenant can actually afford the rent and then also assess their rental history. I prefer to have long term tenants rather than 6 month wonders. In my view properties are damaged when tenants move in and out, so the less moves the better (also longer intervals between tartups) Cheers
Thanks for your replies, I was not really keen on the idea for the same reasons handyandy suggested. Apparently the NSW government are not looking on it favourably and from what I have heard are probably going to introduce some sort of legislation to stop it. But each to their own i say, what works for one might not work for another!
As with any auction... You can bet the agents have their own interests at heart. Income from rental management is based purely on numbers for an agency. So taking the time, energy and costs to setup an auction, with its associated advertising, will of course come at the expense of the owners. Make sense ?? Cheers
Ah, flexibility is indeed the key- never say never, as it's always interesting how quickly environments can change. Why would the NSW govt intervene and ban rental auctions, as they still allow public auctions for sale? It doesn't make sense really- where did you hear this from, Jarrod? By the way, welcome to the forum and great to have you on board
Maybe the NSW government is just dissappointed they're not getting any of that transaction and want a piece of the action like they do on sale transactions. Maybe they'll just introduce the equivelant of stamp duty on letting auctions... Cheers, MW
