Off market leasing: what is it and would it work for your investment property?
The traditional approach to leasing a property (listing or re-listing, advertising, awaiting inspections and applications) can be a potentially convoluted exercise for both landlords and prospective tenants. On the other hand, off-market leasing presents a rare opportunity for both parties to avoid the hassle by discovering, viewing and applying for a property before it has even hit the market.
"Off-market leasing is not an uncommon approach at Jellis Craig Boroondara, purely because we are trying to look after our clients," explains property manager, Claire Batty.
Is off-market leasing always the right approach?
"This particular strategy doesn't work in every instance," says Claire. "There are clear advantages to presenting a property to the market, including exposure to a wider pool of potential tenants. At the end of the day though, when an off-market strategy is appropriate and is executed well, the benefits are there for landlords and tenants alike. It can be a huge advantage to both parties."
Is there a catch?
As the rental market becomes increasingly competitive, any chance to view and apply for a property before it has become available to the general public is beneficial for people looking to lease a property. This is especially true for families wishing to lease a well located home in Boroondara.
"There is a lot of competition in the Boroondara property market, particularly at key times including the beginning of a school year," says Claire. "Family homes are in particular demand due to the desirable proximity of the area to the CBD, its many well regarded schools, public transport and parklands."
Tenants are not the only ones to reap the benefits of an off-market opportunity: landlords may also find themselves in a markedly better position.
"The landlord can make a substantial saving without marketing costs and lost rent while their property would have remained vacant," says Claire.
How is a property leased off market?
"At Jellis Craig Boroondara we maintain an extensive database of highly desirable prospective tenants," explains Claire.
"Our exclusive database includes numerous individuals with a strong rental history, who have previously rented through Jellis Craig and who we know are currently seeking new accommodation." Jellis Craig Boroondara property managers are able to set filters and search the database for prospective tenants that match specific criteria. This then gives prospective tenants an invitation to view, discuss and apply for a property before it has been advertised to the general public. In a competitive market, this can make a huge difference to the time it takes to locate and secure a new home