Leasing a property fast to the right tenant at the right price is one of the most important task any agent can do for their client. While our aim is to maximise your return while minimising vacancy, and the service of a full time Leasing Agent, we find there are some factors that can cause a property to remain vacant for longer periods of time.
Being aware of the factors below, can allow us to improve the chances of renting a property faster and at the right market rent by understanding these:
The market rent is too high – with prospective tenants searching for properties in the convenience from their own couch via internet search functions, allows them to become aware of new properties to the market and will quickly judge and compare to others. We find these days tenants are more educated and have access to a lot more information than ever before. If you do the calculations it can be said that for every week the property sits vacant, it will cost 2% of your annual income on the property. Therefore, with these stats, getting the property priced right and renting it quickly to the right tenant becomes priority.
Poor Presentation – this day and age first impressions count for everything. Having your property looking a bit worst for wear or tired looking can have an impact. Particulars such as overgrown gardens, old musty carpets and out of date furnishings can ‘put off’ a good tenant who are searching for a place to call home and will judge what they see first. From the moment your property is marketed to the audience, you have approximately 3 seconds to grab a prospective tenants’ attention to considering to inspect the property, followed by a drive past the home. If the property is looking neglected they will continue to drive on by and not give it a second thought. Presentation does count!
When Market is Oversupplied – at times the market will experience more properties available than prospective tenants. In Warrnambool we commonly seem to experience this from seasonal change and, of late, a result of a number of developments being approved. Strategically having your tenant sign leases that end in the high demand time (November – February), and also being aware of developments happening in the area can assist us to avoid the vacancy issue.
Local facilities – As our area continues to grow, being ideally located close to areas such as shopping centres, hospitals, schools are positive keys factors most prospective tenants search for. These are items to keep in mind when you are considering your next investment property – think location, location, location! It is shown that properties purchase in the ‘right’ area tend to have firstly, a low turn over of tenancies, and secondly, a very short vacancy period when the outgoing tenant moves.