The Richmond cottage renovated by Polly and Waz on The Block 2011 has been leased at $975 a week

The Richmond cottage renovated by Polly and Waz on The Block 2011 has been leased at $975 a week.

It was the Cameron Street cottage that sold at $855,000 under the hammer to the buyer’s agent Frank Valentic at its televised August 2011 Block auction.

He recently tweeted that the Advantage Property Consulting agency’s property management team had achieved a “fantastic” for the landlord.

“We have just re-leased Polly and Wazza's property for our investor client for $975 per week. Fantastic 10% return including depreciation,” he tweeted.

His yield calculations are not the normal method as most landlords would not include depreciation outcomes within their immediate calculations.

This time last year he noted he’d achieved a rental of $995 per week fully furnished, which with around $40,000 in the building, chattel and furniture depreciation, he suggested reflected a 9.2% return in an unusual method of calculating yields.

Last year Valentic advised Property Observer that the 9.2% was its approximate gross rental yield after taking into account the estimated depreciation although its then $995 asking rent actually reflected a 6.05% typical gross yield.

The drop in rent from $995 to $975 was against the backdrop of the rental vacancy rate easing from 1.5% to 2% vacancy over the past year, he suggssted.

"Our owner was happy to bring back the rent as there are less corporate rentals going around with our shaky worldwide economy," he told Property Observer.

Valentic suggested the client investor planned to hold on to the property for five to seven years and anticipated good capital growth.

Two other cottages on The Block Richmond strip have been up for recent rent with new tenants being sought by the investors.