The Secret to Renting a Vacant Property in a Difficult Market
The most important thing to remember is every day vacant is costing you money! Property owners in Townsville have lost thousands and thousands on their investments due to the current state of the rental market.
The Townsville Vacancy Rate is now significantly higher than it was 10 years ago so the old school method of slapping an add on the internet or newspaper and ‘waiting’ for a tenant is only going to cost you more due to the time you will spend without income.
Because we’re experts, we want to share with you our 4 secrets to getting your property rented in a difficult market for the best price, to the best tenant in the shortest possible time.
1) You Cannot Sell A Secret! – If Tenants Won’t Go to Your Property, It Won’t Rent
When you do a blanket search of rental properties in Townsville, you will find you there are 1000 properties up for rent, if not more. That’s why, you need to make a huge effort when it comes to marketing. We don’t believe in print marketing anymore as most people view things on their mobile phone or tablet so we find that print marketing is expensive and ineffective.
The source of your tenant enquiries will come from 2 main websites, so the first step is to ensure that you’re in on the first page and as close to the top as possible for a search done in your properties suburb. All you need to do is purchase a premier listing (which your property manager should be able to organise for you) and this shouldn’t cost any more than $250 for both sites. This will increase your exposure and as a result, increase the number of tenant enquiries.
The 2nd marketing trick is to ensure your property is as well presented on the internet as possible! Taking photos yourself or having your property manager take them for you just won’t cut it when you’re competing with such a large pool of properties. We recommend getting professional photos, floor plan and virtual tour done to maximise your results.
Professional photos not only make your property look bigger, better and brighter but not many agencies use them so you will have an advantage over competing properties.
Floor plans and virtual tours increase your chances purely due to convenience. If tenants don’t physically have to leave their house to look at your property, particularly if they’re moving here from out of town, your chances of getting a tenant are far greater than that of property that must be physically inspected in order to make a decision. This type or marketing should only cost approximately $600 and it’s a onetime investment only because you can use them over and over again, even when you go to sell the property.
2) Presentation is Paramount!
When you purchase second-hand furniture, you naturally devalue items that are outdated, dirty, marked etc and may end up not buying the item at all. This is the exactly the same as rental properties.
We would never advise that you over capitalise and completely renovate your whole house however, there are some tips and tricks you can follow to ensure your property is significantly more aesthetically pleasing than your competitors.
Things like, fresh paint, new carpets, new curtains/blinds updated stainless steel appliances, replacing old door handles in kitchen and bathrooms, neat and tidy lawns and gardens make a HUGE difference in how your property presents to potential tenants.
The better presented your property is, the more desirable it is to potential tenants and therefore, will result in your property renting faster.
3) The Price Must Be Right
With investment properties, it’s very important to look at price as an ANNUAL figure, not a WEEKLY figure and price cannot be an emotional decision.
You must ensure your property is listed at a competitive market price to achieve the best rent in the shortest time to the best tenant because with an array of properties to choose from:
Good tenants do not need to pay above market rent because they’re sought after in the market
Pricing a property too high will result in the market rejecting your property completely (without even clicking into your ad)
Our secret to pricing your property is:
Go the rental section of realestate.com.au and search the suburb your property is in, plus any additional suburbs that may be applicable to a potential tenant in that area.
Now changes the specs to suit (ie: number of bedrooms, bathrooms etc).
Once you have clicked search, you will see at the top of your search that the listings are sorted by ‘Most Relevant’. Change this to ‘Price Low to High’ and refresh the search
This will show you a list of comparable properties from the cheapest to the most expensive. If there are better properties that are listed cheaper than yours, chances are your price is wrong.
If your price is on par and your property is not renting, keep it mind it could be an issue in relation to steps 1 and 2 if you haven’t already addressed these.
4) Make Sure You Have a Expert Agent Who is Service Oriented
Getting people interested in your property and inspecting it is just the beginning, these will not guarantee you a tenant.
If your agent is not responsive to tenant enquiries or are not experienced enough to negotiate and ‘sell’ your property to potential tenants, then you’ve most likely just wasted money on marketing and presentation and will continue to experience days and weeks of lost rent.
Things like having an online booking system for inspections and an online application system will help with servicing potential tenants.
However, your agent also needs to be able to clearly articulate and defend the price of your property against others in the market and be prepared to continue following potential tenants up to ensure you get as close to the price you’re asking for in the shortest time.
If your agent has not given you any of the above advice, it’s very likely they’re not experienced enough to deal with such a tough market and you may want to consider changing agents.
If you liked our information and advice and want to know more or would like to talk to us about how we can help you get the best return on your investment possible, give us a call or send us a message! We’d love to hear from you.
Don’t forget! If you have a friend or family who may be interested, refer them through to us! If they become and an Excellent Owner, we will give you $200 cash!