Tips and tricks to renting out your property faster
As letting agents, we have rented out over 1000 properties in the Auckland area and I can tell you that the Number One stress factor for owners is having a vacant property, it’s scary!!! It doesn’t matter if you own one rental property or a number of them, having a property vacant impacts cashflow. The rental income you receive usually goes towards most, if not all the way to meeting the outgoings for the property. Maximising your returns and minimizing the down time between tenancies reduces the risk of having to fund the costs out of your own pocket.
So, the question is how do you find tenants quickly so it doesn’t impact your bottom line?
Advertising your property to attract the right tenant for you
When advertising your property, you have literally seconds to capture the attention of a potential tenant as they filter through listings online. Putting yourself in the tenant’s shoes, would you rather live in a place that looks bright, sunny and inviting or a cold dark hovel? The photos of your property are the first port of call that your tenants see and will determine whether they take the next step to view your property or not.
You can either take good photos yourself or consider having professional photos taken. They draw more attention to your listing which in turn results in more enquiries, more prospective tenants coming to have a look and ultimately your property renting faster. We appreciate that this is a cost however professional photos can mean the difference between tenants moving in as soon as your old ones move out or sitting with a vacant property for a week or two. On average properties with professional images rent out 70% faster.
If taking the photos yourself make sure they show your property at it’s best and avoid photos of the toilet with the seat up!
Advertise on a number of sites
Most owners advertise only on Trade Me however we recommend advertising on as many different places to give your property as much exposure as possible. Sites such as realestate.co.nz and oneroof.co.nz and also on Facebook are good options to consider.
Price it right
One of the first things to do when deciding what rent to ask to look at our competition. The market rent for your property is what some will pay for, it can’t be based on how much your mortgage is or what you ‘feel’ it should rent for. There are a number of things to consider when deciding on what rent to ask.
When doing your research focus on rentals that are as similar to yours as possible. Things such as the neighbourhood, number of bedrooms and bathrooms, type of dwelling e.g. house, apartment, townhouse, older style property vs new, garage vs no garage, is there a view are all factors to consider.
Rents can also be seasonal. For example, in January and February you can ask a higher rent than if you were looking for a tenant in the middle of winter. If your property becomes vacant during winter consider offering your tenant an initial tenancy for six months then renewing the tenancy for a further 12 months in say January. This then brings the lease renewal in line with peak demand. Should your tenant decide to give notice it will then be much easier to find your next tenant faster.
Constantly review the rent you are asking
Are you getting lots of enquiries? If not consider reducing the price until you meet the ‘sweet spot’, enquiries and viewings pick up, applications come in and voila it’s rented. I recently rented a property that wasn’t getting much traction. We lowered the price by $30 and within 24 hours we had two applications and the tenancy agreement was signed. If everything else with the property is good it will be the price that is stopping it from being rented.
Do viewings regularly and quickly
When tenants are looking for their next home they are fearful that they will be out of their current rental with nowhere to live. I’ve lost count of the number of times that an owner has said he wants to wait before making a decision on who to rent the property to only to find that when we call our preferred tenant they say ‘thanks, but no thanks, we have somewhere’.
As soon as you get an enquiry call them back. Don’t worry if the house isn’t perfect, most people can look past a slightly untidy property.
Don’t leave it to long before you show them the property. Tenants won’t wait to long so get them through your property as soon as you can.
To attract the tenants that you want having it ‘tenant ready’ is helpful.
1. Mow the lawns, tidy the gardens
2. Open the curtains and blinds to let the sun in
3. Get rid of any nasty odours such as pet smells, cooking smells etc. Air fresheners left at the property can help.
4. Repair any leaking taps, broken light fittings, loose door handles and torn fly screens. Proactive owners are loved by tenants and if the tenant has a choice between a well-maintained property and one that is scruffy, the well-maintained property will win the day every time.
5. Touch up any areas that could do with a freshen up. If you are considering painting use light, neutral colours.
Renthub specializes in finding tenants for owners that self-manage their property. If you would like to use the services of a professional to find your next tenant contact Renthub by completing the contact us form.