Why Do Rental Properties Remain Vacant for too Long?
Renting a property quickly and to the right tenant is an essential part of a property manager's job for their client, however, we find there are factors that can cause a property to remain vacant for longer than desired.
With these factors in mind, we can improve the chances of renting a property quicker and targeted towards the right market. Let’s take a look at some of the factors below:
The Market Rent is too High - with easy internet search options allowing prospective tenants to become quickly aware of comparable properties in the rental market area, tenants are more educated on market conditions now more than ever before. For every week a property is vacant it costs 2% of your annual rental income, therefore ensuring it is priced right is paramount of ensuring it is rented in a reasonable time frame.
Presentation - first impressions are everything! Poor garden presentation, a ‘tired’ rental property with peeling or cracking paintwork, old carpets with stains or rips, and out-dated décor can all deter a good tenant from wanting to make the property a home for themselves. Most prospective tenants will see these issues as a negative and it will leave a bad visual impression in their mind, especially if it is a Saturday inspection and they are viewing multiple properties, they will remember the property as being the old outdated one, and often cross it off their list mentally and not remember any of the positives or the reason why they wanted to view it in the first place.
Oversupply - some times there are more properties available than prospective tenants. This could occur during seasonal requirements, eg generally Nov - Feb is the best time to find a potential tenant as this is when most people are moving due to work/school commitments. Other reasons include recent oversupply of new developments in the area flooding the market with multiple vacant properties at once. Ensuring your property manager is aware of seasonal requirements and developments occurring in the area could possibly help to avoid a vacancy issue.
Local Facilities - being close to facilities, like shopping centres, public transport, health care and education are all factors prospective tenants look for, so when you are considering your next investment property opportunity, forgo the temptation to just ‘choose a bargain’ and think ‘location’ as a key determining factor. Properties purchased in the right area, close to local facilities tend to have a shorter vacancy period.
Enquiries - How often do you send an enquiry and wait longer than 24hrs to get a response? Ensuring you have a property manager who is easy to contact and communicates effectively is one of the most important assets you should consider when choosing a property manager for your property. A potential tenant will often send more then one enquiry at the same time they have enquired on your property, and a property manager only has a short window of time to respond to a tenant before they are considering other options. Your property manager also needs to be flexible with appointment times and inspection opportunities for a potential tenant, eg. listing an open home mid-week at 12pm is not ideal if you are trying to find a tenant who works full-time and can afford to rent your property.
If you are looking for a boutique agency who pride themselves on offering exceptional customer service and guarantee client satisfaction, don’t hesitate to contact us today for a confidential discussion regarding your investment property.