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.
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.
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.
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.
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.