It’s safe to say that when you own an investment property, rental income is your bread and butter. Prolonged tenancy vacancy periods hurt your bottom dollar. So, when your tenants do decide it’s time to move on, what are you (or your property management agency) doing to ensure that your tenancy vacancy period is kept to an absolute bare minimum?
Giving us professional insight into how to achieve a quick tenancy turnaround time is one of Calibre Real Estate‘s Property Manager’s Blake Ericksen. Calibre Real Estate alone manages over 550 rental properties in South-East Queensland so Blake and his team are regularly handling the changeover of tenancy agreements.
“Given that the market can be known to fluctuate, it’s generally a good idea to ensure that you are always well-educated and well-prepared. Constantly having a grasp on the movements within your local market place will arm you with all the valuable details you need to ensure you are making informed decisions about your investment.” says Blake. So, here they are Blake’s top tips on :
Top 5 Tips to Avoid Tenancy Vacancy Periods at Your Property
1. Forward Planning
Try and make sure that your lease agreements expires in a good period for renting. Typically January/February or between June and August are when a lot of tenancy are available for lease. This is mutually beneficial as these are the times in the year that have the most tenants and properties available. Tenants get more choice of property, and you get more choice of tenants.
2. Appeal To Your Market
Most suburbs have quite distinct renter populations. Suburbs near universities are usually dense with students. Suburbs that are well connected by public transport but lack street parking are great options for those who are new to the city and for first time renters. There are many suburbs near and far that are particularly family friendly. Ensure that the advertising for your property appeals to the kind of tenants that are looking in the area. Sometimes additions to your property can be the point of difference too. Including white goods at your property may be what draws tenants in, or even including garden maintenance for larger properties to attract busy families.
3. Rent Reductions
Rent reductions can be a touchy subject, but are almost always going save you money. Although some suburbs are more affected than others, there can sometimes be a large amount of vacancy across the board. This means that tenants have a lot of option to move and find somewhere cheaper. If you were to consider reducing the rent on lease renewals then you can ensure you stay competitive within your market place. Obviously, a renewed lease is the best option. If your tenants don’t renew however, expect to have to reduce the rent at your property from what you’ve previously been getting (particularly if it’s been rented out for the past 3 or more years). Reduce the rent comparatively to the property. A $10 rent decrease on your $750 per week property is not going to have the desired effect. A $30 rent reduction may seem steep at first – but if it can reduce your vacancy period by more than two weeks, you’re still ahead in the end in the above example. Just remember, waiting around for someone to take the property at a higher price may cost you more in the end.
Tenants all lead different kinds of lives, and have different requirements for properties they are looking for. It’s worthwhile letting your agent know that you’re willing to do work to the property if requested by prospective tenants. This may mean being open to replacing dated appliances, to recarpeting rooms that are looking old & worn, or even replacing fly screens that are wearing through. Prospective tenants that know you’re willing to meet them half way are typically more inclined to apply for that property.
5. Keep Your Tenants Happy!
You can avoid the leasing process altogether by keeping your current tenants happy. Make sure that maintenance is attended to on time, and that you give thought to any tenant requests. Making upgrades to the property such as ceiling fans and air conditioning can mean the world of difference to a tenant. What’s more, it may help ensure they stay on the lease for some time to come. Why wait until the property is becoming vacant to make upgrades to entice new tenants? Keep the current tenants happy and they’ve got less reason to move in the first place.
To access more articles about Investing in Real Estate see :
- 8 Value Adding Improvements to Secure Better Rent Return
- How to Terminate A Tenancy Agreement
- How to Screen Potential Tenants
- Top 3 Tenants’ Rights To Know When Your Landlord Is Selling
- The Secrets To The Best Budget Bedroom Makeover Revealed
If you have a property in South East QLD that you would like to discuss with one of the team members at Calibre, then please feel free to call our office at (07) 3367 3411 or lodge an enquiry on the “Property Management” page on our website.