Any savvy investor has the same goal as us. At the end of the day, the return on your property is all about cash flow – the rent received less expenditure. However, the burden of an extensive vacancy period seems to be a lot more common now than it was 10-20 years ago.
Don’t be Trapped in Outdated Methods
If you look at the last 10 years of the Townsville Property Market, you will find that in the earlier years, the vacancy rate was very low, sitting around 3%. Now the vacancy rate has climbed significantly to over 7%.
Basically, there are more properties and fewer tenants in the market today than there was 10 years ago.
However, Property Managers are still adopting the same strategy to rent your property now as they did 10 years ago but expect the same result and that’s why owners are suffering.
If you haven’t been given advice and a strategy on how your Property Manager is going to rent your property, then be prepared to lose money.
We Have the Solution!
Because we’re experts, we have trialled and tested various methods of renting properties in the Townsville Market over the last 10 years and results have proven, our method works.
It’s as easy as 1, 2, 3:
1. Marketing – You Can’t Sell a Secret
99% of your Enquiry will come from 2 Main Websites – Realestate.com.au & Domain.com.au.
Studies have shown that on these websites, 53% of your market will not go past the first page of properties they can find and there are approximately 20 listings per page. If you’re not on the first page, say goodbye to almost half of your potential tenants.
We maintain the best subscriptions available with the 2 main real estate advertisers to ensure when we advertise your property, your listing is prioritised over the others in your marketplace. Yes, it does cost slightly more however, the cost is less than a week’s rent, so the investment pays off!
Your tenants want the best value for money and their first impression comes from the photographs they see for your property online. Property Managers are not photographers so using amateur photos taken by a non-professional will cost you money. Poor photography will result in tenants excluding your property before they have even been through the front door.
We ONLY use professional photos to market your property online. A set of good professional photos will make your property looking bigger, better and brighter resulting in significantly more potential tenant enquiry.
Floor Plans and Virtual Tours
Using things like floor plans and virtual tours has traditionally only been used on For Sale Properties.
Because we’re not traditional, we know that selling and renting are 2 VERY SIMILAR processes and having the leading edge with technology will only help you find an Excellent Tenant.
Did you know in a lot of cases, tenants won’t even look through your property before signing a lease agreement because they’re relocating from out of town or are time poor?
If tenants can virtually walk through your property and take measurements online, they’re much more likely to rent your property.
Some of the benefits of having a virtual tour and floor plan available are:
- Little to no other properties will offer this convenience
- Selling points like air conditioning and built in wardrobes will be easy to identify by potential tenants
- Because of the transparency, your property is less risky to tenants because they can see what it is and how big it is without wasting time attending an inspection
- You only purchase these items ONCE and can use them over and over again for sales or rentals
- Your property has a better chance of renting!
2. Presentation – You Get Back What You Give Out
When you purchase second-hand furniture, you 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, the following things will happen:
- More enquiries and more tenants to choose from
- More competition resulting in your property renter fast with better terms ie: longer lease (more money for you)
- Higher rent and a higher rental return
- Higher tenant retention rates (continuity on your income)
- We believe it is our job to give you this feedback. If you chose us to manage your property and your property is vacant, we will inspect the property within 24 hours of receiving your management agreement and we will provide you with feedback on the presentation, what needs to be done and the costs involved to improve it.
- We also continue to do this year on year so that your property is always ready to re-rent or sell.
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. This cannot be an emotional decision. Your property manager should provide you with a Comparative Market Analysis to show you you’re your comparable competition is and how much they’re renting for.
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:
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 inspecting it)
If your property manager is telling you a price you want to hear or think is too high – BEWARE! They’re pleasing you to get or keep your business and are not concerned about the money you may lose during the vacancy period.
$450 per week (vacant for 8 weeks)
Total Annual Income = $19 800
$420 per week (vacant for 2 weeks)
Total Annual Income = $21 000
$1200 more by reducing the rent by $30 per week!
You should be given regular feedback while your property is up for rent and if the property is not renting, advice on what needs to be done to get your property rented as soon as possible. By following the 1, 2, 3 method we’re able to get you the highest possible rent in the shortest time with the best possible tenant.
If you have a vacancy property or want someone you can rely on to give you honest feedback and advice, please get in touch as we would love to talk further as to how we can help you!