How to reduce your vacancy rate
The Newcastle region has been experiencing an unusual trend recently – we have higher than national vacancy rates.
While the Real Estate Institute of New South Wales (REINSW), the peak industry body for real estate and property professionals in NSW Vacancy Rate survey April 2022 shows residential vacancies for Sydney remain relatively stable, in Newcastle, vacancies rose by 0.5% to 2.0%, and the Hunter region overall increased to 1.7% (+0.7%).
On Saturday 27 May, we saw there were 904 properties for lease in Newcastle and Lake Macquarie on realestate.com.au but it had dropped to 894 by Tuesday; we usually see a third of this number at any given time. Our own figures show interest in rentals is falling – a couple of months ago we were showing around 8-10 groups at opens 2-3 months ago but more recently, there has been less interest.
We believe the cost-of-living crisis and higher rents may have pushed people into moving back in with parents, so there are fewer people looking to rent. The result is, there are more properties available and tenants are having a wider choice to choose from in the area.
A vacant property is the one thing every landlord wants to avoid. An empty property means no income. And no income means paying for running costs, mortgage, council rates and other expenses out of your own pocket.
For well over 45 years property owners have trusted us to manage their properties, and we pride ourselves on generally achieving vacancy rates lower than our region’s average.
Here are four strategies we use to reduce our vacancy rates:
Keeping tenants happy
A happy tenant is more likely they will renew their lease, and a good relationship is key to keeping a tenant happy; in our experience, a good relationship is essential to tenants caring for your asset.
We always promote honest and open communications, and by responding to and addressing issues, tenants know we listen and respect them; at the same time, we are firm and fair when it comes to unrealistic requests.
Unique marketing strategies
As part of our Premium Marketing plan, we also strongly recommend landlords used premium ads on both Realestate.com.au and Domain.com.au; this ensures the property has maximum exposure. Yes, we realise this does cost a little more than standard listings, but if you pay an extra $200 and your property is leased two weeks faster, we still think this is an excellent result and return on investment.
We also have a database of people looking for rental properties and a few other strategies up our sleeve; whether it is on or offline, we know where to find genuinely interested tenants for your property.
Competitive rental prices
We know landlords have expenses– mortgage repayments, council rates, insurance, maintenance etc and your rent is your revenue, but with nearly 50 years of experience behind us, we also know the market and advise landlords accordingly, explaining what they need to consider when setting the rent; in our current market, good tenants paying a slightly lower rental income is better alternative to a property sat empty.
We ensure your rental is in line with the market, and suggest ways in which you can increase the rental income, such as by considering allowing pets (if the property allows it), and making some simple upgrades. Read more ways in which you can increase your rental income here.
Availability
Whether it’s through our online portal, email, telephone or in person, we are always available to answer queries and respond to issues for both our landlords and tenants. Every day, we work for the people who entrust their asset with us, upholding their best interests to ensure they can meet their financial goals through property.
Low vacancy rates are just one reason why many long-term investors choose us to manage their properties.
From knowing the legalities and an ensuring your asset is maintained in excellent condition, to suggesting ways to add value and giving information so you can make informed decisions about your investment property, if you want to find out more about our property management services, please call us on 02 4956 9777, send us an email to: mail@newcastlepropertymanagement.com.au or call into the office if you want to know more.