There comes a time for every landlord when good tenants decide to vacate. Sometimes the leasing process is quick and straightforward and you’re able to find suitable new tenants easily. Sometimes, however, it may seem like you and your Property Manager can’t catch a break and no one is interested.
In times like these, it’s key to remember the three P’s of leasing– Price, Proximity and Presentation.
The first P, Price, is the most obvious of the three. If the property is not priced correctly – to meet market expectations – this will be evident quite quickly. Being out of step with the market can relate to time of the year, volume of listings in the local area and quality of available properties. [See: http://www.realestate.com.au/news/when-can-you-get-a-better-rental-deal/ for analysis on seasonal supply and demand (realestate.com.au July 2016)]
You may also be seeking to increase weekly rent following the previous tenancy. This is a recommended way to test the market but, of course, you need to meet the market expectation. Remember that potential tenants are viewing other properties and they usually have a strong sense of their budget and the perceived value of a property, and will choose accordingly.
By all means talk to your Property Manager about testing the market at the higher rate, but be prepared to move quickly if the market is not receptive. What does this mean? Be prepared to revise your price after the first open for inspection. Agree with your Property Manager what the revised figure is so they may move quickly on your behalf to capitalise on advertising position and any general enquiries.
The second P is Proximity - this links back to the old real estate adage of location, location, location. If the property is located in a public transport ‘dead zone’ then the weekly rent may need to be lower than a comparable property within 1km proximity of a train station, other public transport or a full service shopping area. Potential tenants will be weighing up their transport costs, the daily convenience factor and overall budget in conjunction with the weekly rent. Your Property Manager will make sure they have access to information about public transport and answers to their questions about the local area.
Presentation, our third P, silently speaks volumes! If the property requires obvious maintenance this can cloud the prospective tenant’s overall opinion towards the property. They may wonder whether the poor current condition implies that future issues won’t be attended to, or worry that they may be uncomfortable in the property. Making sure that your property is well presented and clean definitely supports the leasing process and improves the quality of your applicants. Seek feedback and photos (or a video) from your Property Manager and be prepared to deal with any important issues in a timely fashion – your tenancy could depend on it.
Keep the three P's in mind when you work with your Property Manager and the leasing process may seem much easier than you think!