There are many variables involved in listing an investment property for rent and finding a new tenant. These include the potential tenants, the rental property itself, You, your Property Manager, the rent rate, the marketing method and message, the rental market at the time, the time of year to name a few.
Despite all the above factors and more involved in finding a new tenant for your investment property in Brisbane, there are really only a few possibilities as to why a tenant is not secured quickly. Make more than one of these mistakes and you are really going to need to be asking your current Property Manager some serious questions, not to mention the fact that the return on your rental property will be largely reduced as the days and weeks go by.
1. The Asking Rent is too high.
Generally when a tenant is looking for a new home they will inspect several properties in their price range. If your property does not measure up to others they have viewed in that price range, they will simply choose the best value for their money. In a competitive market even an amount as small as $5 over the market rent can cost you a whole lot more. Consider this; for an extra $5 per week that you may be tempted to add to your asking rent rate, (this equates to $260 a year before fees and tax) if your property is $500 per week, you are losing that $500 per week for each week your property is over priced and sits on the market overlooked by active tenants ready to move in to a property now. Today tenants are well educated about the rental market via the Internet and sites like realestate.com.au well before they even start to physically inspect rental properties.
We understand you may have a mortgage or financial commitments that must be met but if you make the mistake of sticking to your guns and insisting on a rent rate that is above the current market you will lose a lot more than if you acknowledged your investment property may not demand the rent rate that you need at this point in time and met the market. This is probably not something you want to hear but it is our job at Paramount Private Property Management to sometimes tell you things you don’t want to hear.
Don’t be afraid to lower your price a little in order to secure a good tenant, you can always write a clause into the lease stating that there will be an increase in the future, that way you can account for it and the tenants know its coming. Prices are not static but they do not always go up either.
Usually your Property Manager is telling you the truth if they tell you need to lower you asking rent, if they know their market well they are not trying to make things easier for themselves, they genuinely do want to secure you a good tenant in a timely manner.
2. The Rental Property is poorly presented.
This issue can be compounded if you also make mistake number 1. When tenants are inspecting your rental property, they will notice if the curtains are torn or faded, if the grout in the bathroom is missing or mouldy, if the garden is full of weeks, the gutters are rusting and falling off or the kitchen is dirty. They will inspect several properties before they make their choice and if yours is not presented in a clean, tidy and well maintained way, it will get overlooked in favour of a more presentable property. The better your property is presented the more likely it is to attract a better quality of tenant who is prepared to look after your investment as though it were their own.
3. Poor quality advertising.
People are naturally attracted to properties that look and sound appealing in when advertised. Research has shown that the better quality of photographs the higher number of times an advertisement is viewed, this rate also increases the more photographs that are available. Highly informative text is just as important. The more your advertisement is viewed the more inspections will be carried out and the more likely your property is to be rented to the right tenants quickly. This is the particular reason we are pleased to offer all new clients *free professional photography valued up to $300, for a limited time.
4. Your Agent is not working in your best interest.
Rental listings that make your property look and sound like great value for money are good and well but the effort is wasted if nobody can actually get in to inspect.
When prospective tenants want to inspect a rental property they generally want to do so fairly quickly, they do not want to wait two or three days until the agent has enough interested parties to warrant leaving the office and showing your rental property.
Check your agent by calling the office and asking to inspect, is someone available within 24 hours to show you through? Why not? Ask some questions about the property, are the receptionist or Property Manager enthusiastic about your property? Why not? Are the advertisements showing your rental property detailed or can you not tell how many lock up garages there are, whether it is fence, has an internal laundry or pets allowed, is the stove gas or electric?
Is anyone even available to tell you about the property, if you have to leave message, how long until someone calls you back? Do they call you back at all?
Tenants are time poor just like the rest of us, if it is too hard to inspect a property they will quickly move onto the next one, if a “for rent” listing is vague, doesn’t have enough detail or awful pictures, your property will get over looked as tenants gravitate towards the rental properties that are appear appealing and and easily accessible for inspections.
*Free professional photography is only available when your property is under management of Paramount Private Property Management, the property must remain under management for a period of 12 months or more or $300 is payable to Paramount Private Property Management. Photographs remain the property of Paramount Private Property Management but can be purchased for $300.