The biggest concern for clients that I have heard over the last two decades is “What happens if my property cannot get leased out?”.
It makes sense because hopefully this process has been made easy for you by a team like OYSI and the mortgage broker did their job. Now it comes down to crunch time – you collect the keys, make the final payment and now you hope you have the right property management company to lease out your property quickly. So, life goes back to normal and you can start making money.
I can tell you from experience that managing 1 to 3 properties is actually not that difficult but when you have a few properties that are not tenanted (and you’re thinking about eating 2 minute noodles) the below tips will make the process a lot easier, and will make sure the income is coming in.
1. Supply And Demand
In my experience, the main factor is supply and demand which is usually out of an investors control anyway. This is usually temporary as an area establishes itself and properties get tenanted out as you always need rental properties It can be frustrating when there are hundreds of available properties. Recently we were called into Doreen, a suburb of Melbourne, where an investment group needed our help as the builder released 50 houses onto the market in one go.
The next step is to look at your advertising. Clients have come to us and said “my property has been on the market for months and has not leased out”. The first thing we do is take a look at how the property is advertised.
The facts are that if you are not on the first two pages of the major portals you lose 80% of potential applicants which means the chances of getting a tenant, let alone the best tenant are slim.
Now when you combine this with the majority of applicants searching through an app, if your advertising is poor your results will speak for themselves. As more properties come onto the market your property will simply be invisible, for all intents and purposes.
3. Advertising Budget
Next, take a look at your advertising budget. I know it is common in the industry for property management companies to win business by not charging advertising but when you have a property manager taking a photo with an iPhone with their reflection in the mirror or you don’t have good descriptive copyright your property will definitely be over looked.
Often, we have advised clients to just pay an extra fee to get back up to the first two pages or even an exclusive showcase feature for half of what your mortgage repayments would be for the week and usually this will do the trick.
4. Clean The Property
The next step is to take a look at the property itself. I know first-hand the costs involved in keeping a property in top condition. Over the last 15 years of getting properties where owners were on the brink of selling because they could not get a tenant a simple clean can do the trick.
Tenants are just like owners. The cleaner a property is, the easier it will be to lease – every time. This has been proven many times over, with our leasing team at Lucra.
5. Consider Allowing Pets
If it is a really tough market considering allowing pets might be the answer to getting a great tenant. In our experience, if you receive an application where the dog is super well-groomed and looked after they are well worth consideration as often owners reject pets without even checking the background.
If you have any questions or would like to know more about getting better rental yields for your investment, we’d be happy to help.
We are a boutique agency striving to revolutionise the real estate industry one property at a time! Founded in 2006 by two investors who were unhappy with the level of service they were receiving for their own investments, Lucra was established.
We offer a complete property service including; rentals, sales, developments, house and land packages, apartments, investments, property management, buyer’s advocacy, insurance, lending, financial planning, risk protection, debt collection and much more.
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Kirk Simpson financially retired at the age of 26 through his families strategic approach to property development and property investment. Now as one of the founding directors of Lucra Real Estate (a specialist property management agency which also looks after his own portfolio), he places his emphasis on being an investor first and business owner second.
Kirk’s drive for maximizing the returns on his client’s investment properties and reducing their exposure to risk is unrivalled in the real estate industry and has brought about a unique and refreshing approach for investors who are seeking more for their investment.
If you would like to discuss your individual circumstances with our OYSI team to see if we can help, contact our office on 07 5510 9341.