Most property owners are extremely resistant to adjusting the rent to meet current market conditions when they are seeking tenants for their vacant or soon to be vacant investment property however it is often the case that a small reduction in rent can avoid weeks without a tenant”, according to RE/MAX WA Managing Director, Geoff Baldwin.
“It is very common for owners of rental properties to insist on their property manager finding new tenants who will pay the same or even higher rent than the vacating tenant however this can often be a false economy”, he said.
“The amount of rent that a property will attract is influenced by a number of factors including the amount of properties available, the number of tenants looking, the time of year, rents being achieved for similar properties and many other factors”.
“So often owners will hold out vacant for weeks attempting to attract a tenant to pay a higher rent only to eventually be forced to meet the market anyway but in the process they have not only had to reduce by $20 or $30 a week but they have lost thousands through their property being vacant for along period.
“When notice is given that a tenant is vacating it is important that a frank and open conversation occurs between the owner and their property manager whereby an achievable rental amount is set that will ensure vacancy periods are avoided.
“Another bonus of asking an attractive rent rather than overpricing the property is that the property is more likely to attract multiple applications and provide the owner with more opportunities to find a quality tenant.
“Of course it may be the case that a property can maintain or even increase its rental income capacity however it is much more sensible to be tenanted than it is to be waiting vacant for a premium rent” Mr Baldwin said.