Case Study: Relling…the Dance of Selling & Renting…Simultaneously

The Situation:

Louise and her husband owned a luxury waterfront property in Sydney’s prestigious Northern Beaches however they were not Australian citizens.  Moreover they were living overseas in their native homeland.  As a result of increasing public pressure, the Australian Government increased Land Tax on non owner occupied by foreign nationals.  The reality is that it did not make financial sense to keep the property.  It was time to sell it but the market was sluggish and they did not want to exchange the property for under what it was worth.  They were looking for a situation where they could take their time to find the right buyer.   So Louise was looking for a solution where they could generate rent while selling it.    They also had plans to come back to Australia as they had business in Sydney and while they were here they wanted to of course use it.

The Solution:

Property Providers engaged by first renting the the property as a luxury holiday rental over the lucrative December and January Period.  After holiday goers exited,  we pivoted the property into an executive rental targeting “extended stays” for the corporate relocation market.  These were people who were looking for a “home away from home” for their migration to Sydney.  The combination of the two, blended hospitality with property management.  All at the same time, we collaborated with the sales agent for them to conduct open for inspections at the property with qualified buyers.  We did so by committing to the property being cleaned prior to the inspections to ensure that showings were polished and professional.

The Result:

Triple Whammy!   After the property being for sale for for a number of months, Louise sold the property (for over $7M!).  At the same time Property Providers was able to generate just under $200K in rentals.  This effectively paid for sales agents commission!   The average booking value was $25K with an average stay of 27 nights.  The owner won, the sales agent won, we won and there were a number of guests/tenants that received a wonderful Northern Beaches experience

Property Providers is Sydney’s most flexible residential rental agency.  Our core purpose is “To Help People Live Better” through providing long-term luxury leasing, super luxury holiday homes and executive rentals for extended stays.  If you are interested in listing your property please contact us on +612-9969-7599 or if you are looking for a tenant or guest who is looking for a handpicked home please visit our website or brief us here

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General Advice Warning: The information in this article is of a general nature only and does not take into account your particular circumstances. Any financial, legal or other matters in this information is based on Property Provider’s interpretation of the existing law at the time and should not be taken as constituting professional advice. Property Providers and its officers and agents has taken every effort to ensure the accuracy of this information and disclaims all liability (except for the liability which can’t be excluded by law) for any error, omission, inaccuracy or loss or damage suffered by any person directly or indirectly through relying on this information. If you’d like to know more about licences and leases and which might be appropriate for your property arrangements with your guests, please contact Don Binkley and the Property Providers team on +612 9969 7599.