You must meet the current rental market, or your property will sit empty

As the rental market changes and the demand for properties reduces in some parts of the country, there must be consideration given to both the price and the presentation of the property. 

Price is always important for most investors, but what is sometimes overlooked is how much money an owner looses during a vacancy period when owners refuse to listen to the property manager and review (and reduce) the asking rent of the property. 

If the property is being marketed at $400 per week and has been vacant for four weeks with minimal enquiry or applications, isn’t it a smarter choice to reduce the asking rent to $380 per week.  As an owner of investment properties I know the $20 per week may feel like a loss, but isn’t it better to receive $380 per week rather than zero per week? 

The rental market changes from month to month , year to year and from suburb to suburb. So while you may have received $400 per week last year and the neighbour’s property is achieving a rent of $410 per week most owners would assume that their property MUST be worth between those two figures. 

Right? 

Well, no. 

It’s actually irrelevant what you achieved last year or what the house next door is achieving or because of CPI you believe you should receive a 5% rent increase this year.  What is important is what the market is doing today and what the market is telling you your property is worth today. 

We always want to believe our property is worth more.  However, when the market changes both the owner and property managers need to work together and change with it.  Together they must face the truth and yes it may hurt a little but again I ask you – isn’t some money better than no money? 

So what should you do? 

Here are some ideas:

• Review your asking rent within 72 hours after the property is placed on the market and continue to review the asking rent at least once a week.
• Have a minimum of five photographs as part of your marketing (and make sure they are current and correct).
• Look at what demographic is best suited for your property and sell those features within your marketing description.
• If you cannot inspect the property, ask your property manager to email you some current photographs.  Then you need to ask yourself what you can do to make your property stand out.
• What improvements can you do?
• Could the property do with a fresh coat of paint?  What about a feature wall?  How is the carpet?  Do the window coverings need updating?
• What about the garden – when was the last time the lawns were cut or tided up? 

So remember, be proactive and good luck!