The number 1 rule for a successful leasing
Regardless of rental market conditions, all property investors should follow this 1 rule to ensure they can successfully lease their property.
When it comes time to finding a new tenant for your investment property, there are a number of jobs you and your property manager will need to take care of.
This includes creating a holistic marketing strategy, tending to any maintenance issues, ensuring you comply with the necessary legal requirements and presenting the property in an appealing manner, among others.
However, there is one rule that, if not followed, will make it difficult for you to lease your property – even if you engage the best property manager in Australia.
That is to be realistic about the weekly rental rate that your property can achieve.
While we would all like to receive more rental income, the reality is that your property will only achieve what the market is prepared to pay.
Before you set the rent, ask yourself the following questions:
1) What’s the level of demand for rental properties in the market at present? Is it high or low?
2) How much rental income are comparable properties in the area achieving?
3) What’s the vacancy rate in the area?
4) What’s the length of time that properties are remaining on the market?
A good property manager will complete this research for you to determine a realistic rental price.
Remember, if your asking price is too high, your property may sit vacant for an extended period of time and you’ll end up losing more money than if you’d initially set the rent at a more realistic price.
For more tips and hints on how to successfully lease your property, check out our free ebook!