It can become very stressful when your investment property is not leased quickly enough and could end up costing you a lot of extra money but this doesn’t have to be case.
The first step is to understand what is happening in the rental market within your suburb and surrounding suburbs. The best way to do this is to go onto the domain website (www.domain.com.au) and see how many units/houses are on the market.
According to REI NSW, the vacancy rate in Sydney as at August 2018 is 3% and this is the highest level it’s been for 13 years. Inner Sydney has a vacancy rate of 2.9%, prior to June 18 this was the highest level in 14 years.
As of 27/9/18 we searched the domain website to see what was happening and found;
- Sydney CBD has over 280 apartments available for lease
- Chatswood has over 190 apartments available for lease
- Surry Hills has over 190 apartments available for lease
- Randwick has over 155 apartments available for lease
- Zetland has over 140 apartments available for lease
- Chippendale has over 140 apartments available for lease
- Mosman has over 120 apartments & over 35 houses available for lease
- Potts Point has over 110 apartments available for lease
- North Sydney has over 110 apartments available for lease
- Darlinghurst has over 100 apartments available for lease
- Neutral Bay has over 90 apartments available for lease
- Bondi Junction has over 60 apartments available for lease
- Paddington has over 30 houses for lease
So what you can see is that some suburbs have a high vacancy rate and setting the rent is the most important aspect of ensuring your property is leased quickly. What this means to you is that a prospective tenant has a huge selection of properties to choose from.
Our office suggests the following tips:
- Set the asking rent at or slightly below market rent
- Ensure the property is clean and well presented
- Attend to any minor repairs
- Arrange for professional photos
- Ensure the copy highlights the best features of the property
- If possible, put up a for lease sign
- Ensure the property is marketed online with major websites (www.realestate.com.au & www.domain.com.au)
- Share the link with your friends on social media
- If over $1000pw ensure you invest in social media marketing
- Make adjustments if the plan is not working
- Ensure the property is shown quickly to a prospective tenant
- Consider allowing pets
- Listen and take advice from your property manager