Even in the midst of a property boom, there are Australian homes that are struggling to sell or find tenants who will pay a good rate. An unoccupied rental property can significantly impact your return on investment, but by making informed decisions, you can ensure your property is the number one preference for tenants in the area.
From choosing the right location to keeping the property in good condition, here are some key strategies to ensure your rental property is always occupied.
Be selective about location
As reported recently by CoreLogic, there are markets in Australia where nobody wants to buy and where investors are selling at a loss. In these spots, there is an oversupply of apartments that resulted from an ‘approval boom’ around ten years ago.
To avoid becoming a frustrated property owner who doesn’t achieve return on investment, one of the most critical factors is location. When you decide where to buy, it’s essential to research the area to ensure it isn’t at risk of over-development, which will result in your unit existing in a sea of ‘same same’.
In terms of location, you also have to think like a tenant. For example, properties close to universities and hospitals appeal to students or healthcare professionals, while homes near schools, parks and shopping centres will be more appealing to families.
Accessibility to public transport is another important factor. Many tenants, especially in urban areas, want to be close to bus, train or tram stops. Think about what will work for their lifestyle when you’re making an investing decision.
Study the competition
Before you buy an investment property or when preparing to list it for rent, take some time to research the competition in the area.
• What is already available on the rental market?
• How long are homes available for before they are leased?
• Are there many similar properties for rent?
• How do other properties compare to yours in terms of condition and size?
• Will you be able to charge the price you need?
Once you have checked out other places in your area, think about how you can offer that little bit extra or ‘price it right’ so your investment property isn’t overlooked by prospective tenants.
Understand what your ideal tenant wants
Understanding your target tenant’s needs can help you tailor your rental to their preferences. For example, if you’re targeting young professionals, features like secure parking, air conditioning and high-speed internet access might be significant selling points. Families, on the other hand, will likely value things like extra storage space, a yard and proximity to good schools.
Regularly update your property
Once you have chosen an investment property and made a purchase, you can ensure it is attractive to tenants by keeping it in good condition. When tenants vacate (or every few years if they don’t), take the time to freshen up the home with minor upgrades and repairs. Freshly painted walls, new carpets and well maintained kitchens and bathrooms can make a difference to the appeal and value of your place.
Be prepared to replace items like ovens, dishwashers, and air conditioners over time. Set aside budget for these upgrades as well as regular maintenance and you will be rewarded with better quality tenants.
Work with a reliable property manager
Managing a rental property requires time and expertise. If you’re nervous about your investment’s occupancy rate, connect with a Professionals property manager. This expert will have access to a pipeline of qualified tenants and knowledge of the local rental market so they can confirm you have set the right price.
Your property manager will also handle tenant screenings, maintenance requests and lease renewals so you can focus on other investment opportunities, or just get on with your life! Their ability to foster positive relationships with tenants can also reduce the turnover rate so your property spends less time sitting empty.
