Hey, guys. So, it's probably one of the most asked questions in our sales process and we've got a floor of guys that basically all day everyday they sell property. That's one of the businesses that I have. And the interesting thing is in the process of selling a property, by far the majority of people, and I'm talking in the probably 80% of people will ask the question, "Will my property let out?" Yeah? And the amazing thing is is, and this is not just, this is pretty much anywhere, and I've proven this in Spain, in the middle of the recession I've proven this time and time again in the UK when we had guarantees that said if we didn't let it within six weeks, we'd pay the rent until we do. And all these sorts of things, you know, so Australia as well, same. The fact is yes, your property will rent, rent a 100%.
Now the provisor on that is that you've got an area with fundamentals. Okay. So there are some exceptions that I have seen and one of the exceptions that springs to mind is mining town in Australia, limited number of properties and a limited number of people working there. And what happened was the mine shut down. So what happens when a mine shuts down? All the people that were there don't need to be in the area or they leave.
And unfortunately one of my mates had bought a property there and there was really no one to rent it. So was it ... Was he able to get a renter? Yes, because the mine opened up about two years later, but what he had to do was he had to drop the rent significantly. So this leads into my two things that you need to know, yeah, in order to get your property rented every single time.
I would almost say guaranteed, this is how you'll get it rented, providing you've got the fundamentals. Okay? You're not in a mining town. But even in the mining town, we proved that you can rent it, it's just the issue was the rent they were receiving when the mine was open when actually rents were through the roof and you know, in Australia this was, the yields were actually positive. It went from that to being the yields were quite significantly negative. Because I think and I can't remember what the numbers were, but I think it was about a thousand bucks a week down to, I think it was 250 bucks a week.
I think it was less than that. I think it was 180 bucks a week. Significant drop, you know? But we got someone to rent it. Yeah? Whereas all those other people were sitting there saying, "It can't be rented" because they were expecting whatever it was that it was receiving, which was well and truly above when everyone was there.
So, what are the two reasons to make sure, the two things that will make sure your property gets rented every time? The first one is, you need a competent agent. Yeah? So a competent agent gets a little bit blurry these days because you can't just instruct agents and expect them to rent the property. If you do, then you're likely to get somewhere between six weeks and three months before you find a tenant. Okay? Because and what it'll be, it'll be you driving the property, you know? In other words, you'll be calling them up saying, "How are we going? What are we doing?" You know? And it'll be your responsibility to do that.
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A good agent, that won't be the case. A good agent will be proactive in contacting you and saying, "Right, here's the feedback from the market. Here's where the market's at right now. I suggest we drop the price." Now, the rent, effectively. Okay? Now here is the key, okay? Number one was you've got to have a competent agent. If you haven't got a competent agent, the best thing to do is sack them. Don't try and change them because to be fair, they've been competent their whole career. Sorry. They've been incompetent their whole career. You're not going to change them on your one property that probably represents to them, maybe you know, between two bucks and 50 bucks per month is what their fee will be. Maybe if you're in London or that you know you might get a 100, 150 something like that.
Bottom line is, for the actual salesperson, they're only getting a percentage of whatever your management fee is so it's even less so you're not going to change their lives by renting your one property. It's not going to happen. Okay? So first one is incompetent agents. Sack them. Yeah? If they're competent, fantastic. If it's still not renting, then simply you haven't found the current market rent for that property. Okay? In which case, in most cases you've got to drop the price.
There are some other ways to do it. You can add incentives, first month half price, first month free, whatever. You know, gym membership down the road or something which might drop it by 40 bucks or something. You can do these sorts of things.
So the first one is if they're an incompetent agent, get rid of them. Second one is, quite simply, drop the rent and you will find what the realistic rent is at some point. And there will be a person move in. And what I always do, what I always say to these agents, when you drop the rent, go back to everybody who's been in there before and had a look at the property and tell them the rent's dropped and see if you get them. And oftentimes, you'll get somebody like that.
It was just the rent was too high, you know? And that little bit of an incentives gets them through the door. All right guys? So consider those two things and you're pretty much guaranteed, okay? Providing you've got the fundamentals that you're going to find somebody to rent your property. All right, guys, have a great day. Live with passion.