The Sydney rental market has been tough for landlords – especially over the last 12 months. But that shouldn’t mean your property remains vacant for weeks or months at a time. Instead, it calls for a more responsive approach to the concerns of tenants and what they are looking for.
Here are our 5 tips for landlords to ensure rental success.
Tip 1: Critically evaluate your investment property
It can be hard to be objective about your own property but in a competitive market, it’s a vital step because it’s what every prospective tenant is doing.
General appearance and maintenance issues such as peeling paint, bold paint colours, weeds in the garden and aging appliances will each negatively impact a prospective tenant’s first impression of your property. If you want to attract good tenants, you need to invest in property maintenance and upkeep. The good news is, these things are often tax deductible against your rental income.
Tip 2: Look at your numbers!
What’s better – a slightly lower rent than you’d like or no rent at all? As a landlord, this is the question you need to ask yourself. Of course higher rents mean more income for you. However, if properties aren’t achieving the same rents as before due to things like a sluggish economy, then surely considering a lower weekly rental income is better than none at all.
The property market has peaks and troughs so accepting a lower rent now doesn’t mean it will be low forever. It may simply be for a year or 2. In the meantime, the overall value of your investment property should continue to increase – helping you achieve your medium-long term financial goals.
Tip 3: Look after your existing tenants
Having a property manager who is responsive to your tenant’s enquiries along with prompt attention to any maintenance concerns, will make it much easier to keep your existing tenant when it’s time to renew their lease.
With rental prices dropping in some areas of Sydney, you may need to consider a rental reduction instead of a rental increase at renewal time. But remember, keeping good tenants is far better for your hip pocket than an empty investment property for weeks or months at a time!
Tip 4 – For landlords managing their own property: Know the legislation!
Over the last 12 months, there have been many changes to the Tenancy Act – especially in light of COVID-19.
Tenants are often highly knowledgeable about their rights so it’s easy to find yourself with a tricky situation if you don’t follow the regulations to the letter. In addition, it’s expected there will be further changes to the legislation as the economic effects of COVID-19 continue. Keeping up-to-date with these changes can be challenging so perhaps it’s time to consider engaging a property manager to help you.
Tip 5: Evaluate your property manager
Both tenants and landlords need to have a close working relationship with the property manager. A good property manager should be a landlord’s advisor and the tenant’s mentor on how to care for your investment property.
In sluggish markets, your property manager also needs to be innovative; finding new ways to attract and retain great tenants. So how is your current property manager responding to your calls or the concerns of your tenants? The answer to this question could really determine the income you can expect from your investment property over the next 12 months.
Is it time to look at your options?
If you haven’t used a property manager before, or if you would like a second opinion about how your investment should be managed, talk to Brigitte Stills. With over 35 years’ property management experience, she’s seen every type of market fluctuation.
With all that experience, she knows how to make a property stand out as well as how to evaluate and select the right tenant. To explore your options, contact Brigitte from Stills Properties on 1300 091 638 or email firstname.lastname@example.org