The rental market, like the market for investment property, can be very competitive in most Brisbane suburbs. And if there’s one thing you simply cannot afford as a property investor, it’s having your property stand vacant for an extended period of time.
When your property is vacant, your cash flow stops. But of course, unfortunately your expenses don’t. Worse yet, a vacant property is much more likely to remain vacant in the current market if you don’t take action immediately. So what can you as a property owner do to reduce vacancies?
Attracting quality tenants, enjoying quality yield
In the current Brisbane rental market, it shouldn’t take longer than 3 weeks to find a quality tenant for your investment property. What’s more, you shouldn’t be going more than 2 days without new enquiries from potential tenants coming through. If it is taking longer than that, something is wrong.
So, why is your property vacant? What is it that separates a rental property that is always occupied by quality tenants from one that often has vacancies for periods of time, forcing the investor to fund the property from their personal budget? We asked the Running Property team to take a look at the five main reasons why your rental property may be vacant.
1. Not considering price vs. value when setting rent
Usually, a home is vacant simply because the owner wants too much money for rent. If you are going to charge top dollar for rent, you have to give top value in return.
So if your property is vacant, check to see what similar rental properties in the same neighbourhood are going for on the rental market. If all other things are equal, the lower price wins every time.
2. Your rental property’s appearance
It may sound obvious, but your property’s appearance – how it is presented – will have a huge influence on whether or not renters will be attracted to it. If you are showing your home to a lot of prospective tenants, and the price is in line with comparable properties, but you’re still not getting applications, then something about the presentation is driving tenants away. Which leads us to…
3. The condition of your investment property
Quality tenants won’t be impressed by a rental property that’s crying out for a little TLC. So before you conduct your open home, make sure all those little maintenance items on your to-do list are taken care of. If your investment home needs a new coat of paint, now’s the time to get out the roller! If your property could benefit from new carpet, call in the installers. A little investment now can pay off big time in the future.
4. A lack of street appeal
Even though you’re very familiar with the look of your investment property, remember that prospective tenants will be seeing it through a fresh pair of eyes. So take the time to make sure your rental property looks attractive from the street. You only get one chance to make a first impression!
5. Your rental property advertising
While it’s tempting to talk up your rental property to help it stand out from the crowd, there’s no point in misleading your potential tenants. After all, they will no doubt inspect your property in person before making an application! Any ‘exaggerations’ you make will be exposed, leaving a disgruntled home hunter who’s unlikely to apply.
So ensure your advertising reflects the property’s true dimensions, and emphasises some accurate “selling points” of the home. And for best results, organise professional photography to capture your rental property’s best features and encourage tenants to inspect it in person.
Change Property Managers now and enjoy a Rental Guarantee
The number one thing you can do to reduce the impact of rental property vacancies is to switch to Running Property. Our Rental Guarantee means that even though your property may become vacant, you will never be out of pocket while using Running Property.
Our experienced team of property managers know what it takes to attract and retain good quality tenants – and ensure good returns on your investment. Call Running Property’s expert investment property managers now on 3392 1544 for a confidential discussion.