How to find the right tenant in a tough rental market.
Potential tenants in Perth can afford to be picky; gone are the days when a rental property would attract multiple lease applications after the first viewing. If you are a tenantless landlord, consider these easy to implement tips.
Today, tenants are using web portals, such as reiwa.com.au and realestate.com.au to find their next rental property rather than more traditional methods. Social media hubs, such as Facebook, can also be successfully used to find a new tenant. An example of this is the Facebook page Perth Rental Properties which is managed by Mavin Real Estate.
The correct asking price
Your asking price is the most important factor when looking for a new tenant, so it is vital that you understand the current marketing conditions and are asking for a realistic rental return. Often a landlord is tempted to ask for a higher than market rent, however this will quickly backfire, as it will take longer to find a suitable tenant. Unless you respond quickly to this situation and adjust the asking rental price, you risk receiving no rental income.
For instance, if your original asking price is $440 per week, but you are able to rent it out at $430 per week, the reduced income is only $10 per week. That works out to $520 per annum, so even if you had to wait another week to get the asking price of $440 per week, you would be better off accepting the lower rental price straight away.
Term of lease
When in a market where the tenant has the upper hand and it is harder to source good tenants for rental properties, the tenant would often like longer lease terms. If you are not considering selling the property in the near future, it is worth considering accepting a lease that exceeds 12 months.
What should your rental property include?
Given the Perth climate, air conditioning is a must. If your property has an old air conditioning unit or none at all, consider investing in one to attract better tenants who are willing to pay more. It is also a bonus if the rental property comes with a dishwasher.
Also consider if the tenant can have pets. Some rental properties are not suitable for pets, but if yours is suitable it is an important feature that can attract a good tenant who is willing to pay more.
Sourcing a good tenant in an oversupplied Perth rental market requires skill and dedication. Though it can be tempting to accept any tenant to generate instant rental income, it is still very important that your property manager does full reference checks to ensure that your investment property is occupied by the right tenant.
About the Author
Bronwyn Pollitt is a licensed real estate agent and experienced Property Manager, having entered the industry in 2002. For more info click here
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