How Watt got the job done
My clients Adam & Carolyn live in Byron Bay. Adam has his own financial planning business and Carolyn works at local Catholic school, St Finbarrs. We’ve managed their investment unit in Kedron for over 3 years.
Given Adam’s profession, he’s all about the returns. I’m very conscious that I’m competing with the share market at every lease renewal.
Adam & Carolyn’s apartment is over 25 years old. Whilst it’s been reno’ed in all the right places, it’s the apartments proximity to the city that’s got his current tenants hooked.
We’ve kept the same tenants for almost three years now, with consistent rental increases at each renewal.
Gross rental yield in Kedron has fluctuated between 3.5 – 4.5% over the last 12 months. Our last 2014 and 2015 rental increases have sat at 6% and 9% respectively.
We did extra due diligence to make sure we found Adam & Carolyn great tenants with a glowing track record that had the capacity to easily afford the rent at the time (and future rental increases).
We kicked them off on a six-month lease to make sure they looked after the property like we hoped. And they did.
Over the last three years, we’ve kept a constant and open flow of communication with the tenants. We’ve increased the rent with each 12 month lease renewal and kept Adam & Carolyn’s returns cranking in an otherwise flat market.