Understand what the market is
Have a look on RE.com.au and have a deep understanding on what the state of play is in the current market. Know exactly how much stock is on the market and what the current situation is. This can help you with making more informed decisions on how long you should be leasing the property out, if there is a lot of stock on the market you should look to secure tenants for longer periods to sure up your income, whereas where there is limited stock on the market you can look at shorter tenancies to take advantage of the limited supply.
Rank all rentals by type of stock and price to see how yours fits
This is as easy as going online, comparing other properties to yours and seeing where your property sites in – for example looking at other 2 bedroom 2 bathroom units in the same suburb and then ranking yours to see how it fits – does it have the same amenity? Access to transport? Proximity to shops? This fit helps you determine where your price point should be as well. If you have the most amenities and floorspace for the suburb, then your price should reflect this whereas if it is the smallest property, furtherest away from the shops then you price also need to reflect this.
Have the best photos + description available
Seems easy enough, but it seems for most spending a small amount on photos for a better outcome. Take wide angle photos, or hire someone who is a property photography expert, and as you can see from these photos a picture really can speak a thousand words. They say a tenant makes up their mind within 3 seconds of seeing your listing online, so if you aren’t presenting with high quality photos then you are setting yourself up for failure.
Have 2-3 open for inspections each week
More than ever, these days people want flexibility both in work and in their living arrangements, and in managing your property you need to be acutely aware of this. It is quite common for tenants not to be working 9-5, some might be shift works and others have flexible arrangements but this being the case you cant just expect every tenant to work on your clock. We have found having 2-3 open for inspections each week has helped capture a wider base of tenants and better outcomes overall.
Be prepared to negotiate the price to secure a quality tenant
The internet has made tenants more savvy and educated than ever. Today they know what the adjacent property rented for last week, how many other properties are on the market and what they are renting for so there is always the chance they may try to negotiate with you on the rent. As a landlord you need to be a bit flexible on this, and look at the bigger picture. If you are trying to rent a property for $500 per week, and the tenant offers $490 per week rather than holding firm to your $500 do the numbers – Over a year this $10 less a week is $520, but if you lose a fortnights rent trying to find another tenant this would be $500 x 2 = $1000. As the saying goes, a bird in the hand is worth two in the bush.
As you can see, although managing a property looks to be a fairly simple process (advertise online, get tenant, collect rent) there is a lot more involved when you have a quality manager, and it is only when all of the above points are combined that you get the right result being a quality tenant, into your property quickly and seamlessly. This is the sole focus of our rentals team at Red & Co. Our property managers have a minimum of 10 years experience in the industry, and all own properties themselves so they know the importance of having someone that you can trust with mangling your property.
If you need an experienced property manager or would like a second opinion on your rental property, get in touch with one of Red & Co’s Property Managers on 1300 88 73 28 or contact us via our contact form here.