8 reasons why your property is vacant
No investor buys a rental property to have it sit empty…
The key to a good investment property is to make it as desirable as possible so tenants want to live there, and once they are there, they want to stay there; if circumstances change for them, and they do leave, you need to have the minimum amount of time between tenants.
While vacancy rates are generally quite low at the moment, (and properties we manage are constantly below the average rate for NSW), there are an array of reasons which contribute to a property taking longer to rent out.
Here are eight of them:
- Unreasonable rent
Landlords need to be realistic when setting rental rates; considerations include what the market is doing, the state of the property, and where the property is located. For instance, a property next to the beach will command more than a similar property in the suburbs.
- Poor marketing
Key to any rental property is getting the marketing right. Poor images, bad advertising and using the wrong channels will contribute to a property being vacant for longer.
Marketing should showcase the best features of the rental property, and entice potential renters as to why they should want to live there. At the same time, the marketing must be honest – you don’t want people to come to an open inspection, only to find out the property is not what it says in the advert; it’s a waste of both theirs, and your time.
- Unrealistic expectations
We expect tenants to keep a property at a certain standard, and this is written into the contract.
However, while the property is yours, if you start putting unrealistic stipulations into the rental agreement as to what a tenant can and can’t do, and how the property should be kept, your potential tenant might just see it as too much of an expectation, and look to live elsewhere.
- Appropriate and timely screening
Tenants do apply for numerous properties, so acting swiftly upon receiving their application and doing relevant checks is imperative; great tenants who get accepted quickly will usually go with the first owner who says yes to them.
- Badly maintained
No-one wants to live in a badly maintained property, and cleanliness, privacy and security also contribute to poor vacancy rates. It is essential your property is well presented, maintained, and at the very least, meet minimum standards for rental.
- Undesirable features
Some properties do take longer to rent out simply because they actually don’t lend themselves to being an investment property. If you’re looking to buy an investment property, it’s good to bear in mind, small rooms and limited storage space may discourage some prospective tenants.
- Poor location
While living in a rural retreat may sound idyllic to some, the vast majority of tenants want to live in a property close to amenities, entertainment and public transport. This is why it’s important to do your homework before you buy and ascertain whether the location will be attractive to more potential tenants.
- Using the wrong agent
A prospective tenant will judge an agent from the start, and the person at open inspections will have an impact on them applying. Likewise, if there is a lack of communication, and the tenant isn’t treated with respect or professionally, they will terminate their tenancy as soon as they can.
If you are looking for a property management agent, would like to know more about our services and why our vacancy rates are lower than the national average, our knowledgeable and experienced team would love to help.
With nearly 50 years of business, we are one of Newcastle’s longest established property management offices, so give us a call on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office for a chat.
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