The rental market, like the market for investment property, can be very competitive in most areas around Perth. And if there is one thing you simply cannot afford as a property investor, it’s to have vacancies for extended periods of time. When your property is vacant, your cash flow stops. Unfortunately, your expenses don’t. Worse yet, a vacant property is much more likely to sustain vandalism than one that is occupied.
In this rental market it should take no longer than 3 weeks to find a quality tenant, and you shouldn’t go more than 2 days without new enquiries coming through. If it is taking longer than that, something is wrong.
So, why is your property vacant? What is it that separates a property that is always occupied by quality tenants from one that often has vacancies for periods of time, forcing the investor to take money from his or her personal budget to fund the property? Here are a few main reasons why your property may be vacant.
Price/Value
Usually, a home that is vacant is that way 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. If your property is vacant, check to see what similar properties in the same neighbourhood are going for on the rental market. If all other things are equal, the lower price wins every time.
Appearance
Your property’s appearance, how it is presented, is going to determine 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, then something about the presentation is driving tenants away. Make sure all maintenance items are taken care of. If the home needs a new coat of paint or a new carpet, provide one.
For best results the property should be professionally photographed to capture it best features and encourage tenants to inspect it in person.
If your advert is misleading in any way, change it to reflect the true dimensions and features of the home. Also, make sure the property looks attractive from the street. You only get one chance to make a first impression.
Your Property Manager
We could make an entire piece on bad property management, but we focus on the positives here at Investors Edge. If you hire the right property manager, your property will be advertised and presented in the best way to keep your rental property filled with qualified tenants.
Call 1300 472 427 today for more information.
Read an article on: “Is Your Property Still Vacant? Here’s Why!”
