Renting your investment property
Any savvy investor has the same goal as we do. The return on your property is all about cash flow (the rent received less expenditure). Over the last 10 years Townsville has seen huge fluctuations in the market, natural disasters and a pandemic, and not all agents are keeping up.
Even though we have seen so much change in the rental market, some property managers are still adopting the same strategy from 10 years ago, to rent yourproperty today. This is why some 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.
Because we’re experts, we have trialled and tested various methods of renting properties in the Townsville market over the last ten years and results have proven, our method works.
Promotion – we need to attract the HIGHEST number of prospective tenants to get the best result
Human beings are very visual and the advertising of your rental property that you choose will have a big impact on the result you get. If people are not able to find your property online or the marketing images do not make the property look aesthetically appealing, the less people there will be inspecting the property. This means a worse result for you as the owner.
By engaging a professional photographer, the marketing images of your property will make your property look bigger, better and brighter compared to those without professional photos. When being compared to others by prospective tenants, people will be more likely to go to your property just because it looks better.
Over 99% of your enquiry comes from either realestate.com.au and domain.com.au. Realestate.com.au have measured that 53% of prospective tenants do not scroll past the first page, on their first visit. This means we must on the first page and as close to the top as possible on both of these search engines. This is why we ONLY use premier advertisements when advertising on these sites. It’s basically paid priority so that you’re on the first page, and as close to the top as possible resulting in – more enquiry!
With everything that is going on, chances are prospective tenants may not be able to physically inspect your property or, just may not want to for their own peace of mind. That’s why it’s really important that as soon as it is possible to do so, you have a virtual tour conducted of your property so that prospective tenants may do this online. Thanks to smart phone technology, this is a quick and cost effective method to getting your property rented.
Presentation – your investment property needs to present better than its 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.
Price – the price must be right
With investment properties, it’s very important to look at price as an ANNUAL figure, not a WEEKLY figure. Price cannot be an emotional decision.
If your property is listed at a competitive market price you can;
- Get the best rent in the shortest time
- Attract the best tenant
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 investment property
- Go to 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 change 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 property is promoted, presented, and priced accordingly, it should rent.
We ensure we keep our fimger on the pulse throughout the marketing campaign. We communicate with you to assess the feedback and if needs be, adjust the strategy to get your property rented.
For example, we may not hit the nail on the hit with the pricing straight away. If we know it’s promoted and presented as well as it can be, the only thing left to change is the price. A slight price adjustment may need to be made to get the property rented. This avoids you spending months on the rental market looking for a tenant and losing thousands through having a lengthy vacancy.
By following this method, even during COVID-19, we have managed to keep our overall vacancy rate to less than 1%.
|Scenario 1||Scenario 2|
|$450 per week (vacant for 8 weeks)||$420 per week (vacant for 2 weeks)|
|Total Annual Income = $19 800||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. If the property is not renting you should be getting advice on what needs to be done to get your property rented as soon as possible. By following our strategy we’re able to get you the highest possible rent in the shortest time with the best possible tenant.