Rental Vacancies – What’s Happening and How to Combat
Though it’s not yet as bad as major capital cities like Brisbane, Sydney and Melbourne the number of properties available for rent is higher at the moment than before giving tenants more to choose from. With more choices, tenants can be pickier about which properties they apply for because it’s less important to secure the first one available.
Another factor at the moment is the availability of property that can be purchased by perspective tenants as a forever home. With first home owner grants, builder or developer bonuses, stamp duty concessions and mortgage rates on a new home is often similar to the rental amount per week for a comparable property, taking more people into home ownership and away from renting.
So, how do we combat this? Once you know you have a property that will become vacant in a couple of weeks, it important to price it currently. Try pricing it competitively in comparison to other similar properties not by what you think you would like to get. By sacrificing $10 per week initially on a 6 month lease, you might only lose $310 on the first 6 months. However if your property sits vacant for even 1 week, you will have already lost far more. Keep in mind that upon lease renewal you can ask for a rental increase. Given that the current time a property sits vacant on average can be as high as 34 days, holding out for $10 per week instead of taking a tenant could be a very costly exercise.
Another option you have is through promotion of your property. With so much competition it may be hard to make YOUR property stand out from the crowd. On most of the major websites that tenants go to find property, LJ Hooker Forest Lake has the option to HIGHLIGHT
your property with a priority placement thus taking it to the top of the list and making it easy to find.
If you want more information on how to combat long vacancy periods and minimising the loss of income form you rental property give the team as call, or speak to your property manager