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How Long Will It Take To Rent Out My Property?

How Long Will It Take To Rent Out My Property?

How Long Will It Take For My Property To Rent?

Vacancy is one of the largest concerns that a landlord will have when searching for a tenant. How do you minimise it?

 

The length of time a rental property is on the market is based on three main points.

  1. Marketing
  2. Presentation
  3. Price

Marketing is essential to have correct as you want the property to stand out against the many other properties that you are in competition with. Take professional photos, video, do a floorplan, anything that can make you stand out from the crowd!

Presentation is often not thought about for an investment, which is a shame as the better the presentation of the property the more it is going to attract potential tenants to apply. Concentrate on cleanliness and attractiveness with light and space when making your property presentable.

Lastly, the advertised price of the property will reflect how long the property will be on the market. How it is priced to comparable properties will play a big part in the vacancy timing. 

If your property is vacant it may require a different strategy to that of a property with a tenant already in place in order to minimise vacancy periods.

Understanding the current ‘days on market’ is the job of your property manager to inform you of along with similar properties current online in competition to yours. This will give you logical information and allow you to make a calculating decision on the price to advertise.

 

Important Point to Remember:
Be proactive! The price and demand for properties similar to yours along with the pro-activeness of your property manager will determine how long it takes to secure a suitable tenancy application for your property. Also, take into consideration the feedback from tenants who attended open for inspections for your property, this will give you insight to again assist with pricing correctly. Remember, if its something you can’t change to the property it will translate into a price adjustment. 

How Do You Attract The Tenant That You Want?

How Do You Attract The Tenant That You Want?

How Do You Attract The Tenant That You Want?

The main objective for most owners when leasing their investment property is to find a tenant who will pay on time and take care of your property as if it were their own but how do you filter through the crowd and attract the right tenant for you? 

Highlighting your property features is an important aspect that appeal to a tenant however this may not necessarily be the same features that you would look for yourself. Your ideal tenant or at least the type tenant suitable to your property should be taken into consideration. Find the features most suited to them and advertise the features enticing to them.

There are also external factors that need to be understood as these may affect the type of prospective tenant who applies for your property. The presentation of the property, the time of year, the advertised price, and the systems and people in place to handle enquiries and their ability to qualify each one of them.

Lastly but by no means least is conducting a full and thorough screening of the potential tenant’s application once a suitable one applies. This includes full rental history (especially current living situation), tenancy database checks, personal and employment references, rent payment behaviour and history and condition of their previous rental properties during routine inspections.

Important Point to Remember:
Focus on quality, not quantity for prospective tenants and their applications but if you utilise the tips above you can attract competition and still get the best of both worlds.

When Should I Advertise My Property?

When Should I Advertise My Property?

When Should I Advertise My Property?

For all Investors/Landlords, you want to maximise your return on investment (ROI). One of the critical factors that help boost this is the vacancy of your property.
Therefore being mindful when your property is coming up for renewal or when you decide to advertise your property will play an important role on the demand for your property.

So when is it a good time to advertise and what months should I be more mindful of?


January – February

This is the busiest season in the rental market and the time of year that people are most on the move. Their reasons typically include transferring for work, settling the kids into a new school, students starting university or simply renters who want a change in location or lifestyle.

During these first months of the year are when the majority of leases are due to expire. Therefore renters are more likely to make a change due to no additional financial obligations that a break-lease might incur at other times of the year, when they are still bound by a tenancy agreement.

June – August

This is the another busy period for the Sydney rental market. New university intakes are occurring and six-month tenancy agreements are due for expiry, so this is another optimal period to maximise demand for your rental property.

December

Christmas and New Years are a time for celebration and family for obvious reasons and whilst people still move during this period, there tend to be more tenants going away on vacation. Whilst not the end of the world it is fair to say it is least favourable time to lease due to potential higher vacancy periods during the silly season.

Important Points to Remember:

While it is not impossible to find a suitable tenant at any time of the year, these two peak periods provide investors with more: more selection of suitable applications, more demand, more quality applications and more potential for the optimal rent to be achieved.

A common misconception about tenancy agreements is they should be either six months or 12 months. This is not a legal requirement in NSW and if you are an investor who has a tenancy agreement due to expire in any other time of the year, it is wise to consider aligning your tenancy to end in any of the peak seasons.

Some tenants might find it odd that a lease being offered to them is not for a typical six- or 12-month period, so your property manager should communicate clearly the benefits to the tenant of ending a lease in a peak rental season.

The number of renters to increase in Australia?

The number of renters to increase in Australia?

A new report by researchers from Swinburne University of Technology, Australian home ownership: past reflections, future directions, delves into the levels of homeownership in Australia since World War II and what we can expect in the future. The great Australian dream of owning your own property is still a big ticket item on most Australians bucket list, but for some, in the decades to come, it could remain a dream as up to 40 percent of Australians could rent in the future, according to the report.

Several factors are expected to drive the anticipated increase of people who rent in Australia in the coming years, this includes ongoing affordability challenges. Interestingly, the report discovered relatively stable homeownership levels in Australia. For example, in 1976, approximately 68 percent of people were owner-occupiers, and in 2016, around 67 percent of Australians were owner-occupiers.

According to the report, approximately 50 percent of Australian households under 60 years old will rent from private landlords over the next 20 years. Another interesting finding is that simultaneously, owner-occupiers are expected to decrease to 63 percent. Of those renters, it’s expected that 51 percent of them will be in the 25 to 55-year-old age bracket.

So, what does that mean for property investing?

Whilst interesting, these are only forecasts. Yet the report does provides some insight into the future. Regardless, the changing proportion of owner-occupiers and renters will likely happen steadily as it has over the last four decades.

To continue to be an avid property investor over the coming years, it is important to keep these changing demographics in mind whilst balancing this with your priorities. The fundamentals in the property market are unlikely to change. People will still look for three key features for their home; living close to amenities, decent infrastructure and close to employment opportunities. Aim to find properties that tick these boxes, whilst structuring your investments in a way that helps you meet your long-term goals. This will keep you on track to building a strong portfolio for yourself.

The important thing for investors right now, and all the time, is to regularly check-in and ensure your portfolio is working towards meeting your long-term goals. And if it’s not, that’s ok. It’s a timely note to shift things around to make sure you’re building sustainable, long-term wealth.

Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.

What To Expect – The Property Market in 2020

What To Expect – The Property Market in 2020

Many industries have been greatly impacted due to the COVID-19 pandemic, this includes real estate. It is understandably a stressful time for people, with inspections changed to adhere to the government’s isolation and social distancing measures, and a fair few landlords and tenants facing financial hardship. How the property market performs as we move to the other side of COVID-19 is I’m sure at top of mind for a lot of property owners and investors,.

Depending on what you read, some economists believe we could see an 11 percent decline in property values across Australia. However, some have more of a bullish scenario and there are predictions of almost a 32 percent decline in house prices. There is a lot of hype around this topic currently and rather than get too drawn into the potential for a fall in house prices, it is more important to understand what’s going to drive property prices in Australia over the next couple years. We have included an overview of key factors that may impact the rental market over the coming months and years.

Increased Pressure on Rent Prices

All of the short-stay/short term leasing platforms such as Airbnb and corporate accommodation are experiencing a significant decrease in demand. Majority of these properties from these platforms have been forced to list as long term rentals. This is placing downward pressure on rent prices due to more stock becomes available in the market and giving tenant much more choice. Areas most affected are those with large international student populations which in turn have increased vacancy rates and has also placed pressure on rental prices.

Market Conditions across capital cities

Since isolation measures escalated across Australia in March, the rental vacancy rate across Australia increased by 0.8 per cent to 2.5 per cent in April. Sydney and Melbourne fared the worst with rental listing increases of 36.2 per cent and 34.1 per cent, respectively. Areas with large populations of retail or hospitality workers, international students and other people from overseas have been hardest hit in these cities.

Immigration into Australia

Australia’s property market has been buoyed in recent years by immigration. Immigration numbers could see a decrease by around 300,000 people over the coming years due to COVID-19. This could cause a flow-on effect where property prices and the rental market may be hardest hit for cities and regions that have typically had a large migrant population.

Ultimately, no one knows where property prices will go, and what kind of policy response the government may have if we end up in a more bearish scenario. The key way to prepare for any scenario is ensuring your mortgage is suitable for your situation and can weather an economic downturn. Regardless of COVID-19 or other macro events, having this approach to your mortgage at all times will ensure you don’t need to buy into media hype around any scenario.

Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.