Closing the rental vacancy gap
Renting a property quickly to the right tenant is essentially the most important task any property manager performs for their clients, but the process doesn’t always run as smoothly as anticipated.
There may be contributing factors, which property manager and landlord need to discuss and remedy together to achieve the result both parties are aiming for:
1. Rental price is not competitive – using the internet, it takes only minutes for prospective tenants to find out what comparable properties in the area are renting for, so establishing the right price is fundamental to reducing vacancy. Every week a property is vacant costs 2 per cent of its annual rental income, therefore renting it quickly is everybody’s business!
2. Looking a bit tired – first impressions are everything and poor garden presentation, ‘tired’ rental properties with peeling paintwork, old carpets and outdated décor can deter quality tenants who want to make your property their home. A small investment in updating paint, carpets and the bathroom and kitchen will pay long-term dividends. Not to mention a spruce up outside to convey the message that the property is cared for.
3. Supply higher than demand – sometimes there are more properties available than prospective tenants. This could occur for seasonal reasons or as a result of a number of developments in the area flooding the market with vacant properties. While nothing may change these external factors, you can give your property the best chance of holding its own in a crowded market by ensuring that the property is priced competitively, has been presented well and that the marketing and advertising campaigns (photos, description, internet listings etc) attract maximum attention.
4. Position, position, position – being close to facilities like shopping centres, transport, health care and education are factors prospective tenants look for, so when you are considering your next investment property, forgo the temptation of ‘just chasing a bargain’ and think ‘location’ as a key factor. Properties purchased in the right area tend to experience shorter vacancy periods.
At Jellis Craig Boroondara we work hard to lease properties in the shortest possible timeframe. Consulting promptly and closely with our landlords on factors such as those listed above helps us consistently achieve rental vacancy rates well below the Melbourne median.