Renting out an investment property can be very competitive, with landlords vying for the best tenants.
Here’s how to offer what tenants want and keep your investment profitable.
Communication and respect
Housing is one of our key needs in life, so it’s important that tenants feel safe, secure and respected when it comes to decisions about the place they call home. We take this responsibility very seriously at 360 Real Estate.
It’s not just about common decency for us, although that does play a big part in how we do business. Treating your tenants with respect also has a significant impact on how likely they are to stay in the property long-term, instead of casting their eye on what else they could get in the market and contributing to costly vacancies. A tenant who feels like their needs are respected and that they can communicate openly is more likely to continue on after their lease period has ended. They’re also more likely to treat your property with respect.
This philosophy of respect and communication extends to charging a fair rent as well. If you raise the rent too often, ask for too much or refuse to negotiate on a fair price for both parties, it’s a clear sign to tenants that they’re not being respected. The bottom line? Treat tenants how you’d expect to be treated and your investment will benefit.
Fair and competitive rent
So you know that a fair rent is important to tenants, but do you know what a fair rent is for your property? Many investors don’t and this is where a professional property manager with years of local knowledge can be an asset. They’ll consider the key features your property offers – such as number of bedrooms and bathrooms, proximity to transport and future infrastructure development, air conditioning, parking, the condition of the property and so on – and compare it to similar homes in the market. This helps determine a competitive price that will attract tenants, while still bringing in a good return to cover your costs.
Tenants are often happy to pay a bit more for a property with added features. Many expect and understand the need for occasional rent increases, as long as you can show how the rent is still in line with the current market. If you ask for too much more you’re more likely to have higher vacancy rates as your tenants find something better for a cheaper price.
What's my home worth?
Small renovations, or even just simple improvements, can also ensure your property remains desirable for your target audience. A coat of paint can often do the trick, as can installing a dishwasher or updating the flooring or curtains. We’re happy to chat to you about ways to tweak your property to appeal to more buyers before it hits the rental market.
Repairs and maintenance
No matter how well you and your tenants have cared for the property, there’s bound to be something that comes up that will need your attention. And it’s understandable that tenants expect any repairs and maintenance issues to be dealt with promptly.
There are legal regulations that dictate what classifies as urgent and how quickly urgent matters need to be handled. An experienced property manager can guide you through these and take care of them on your behalf. Our rule of thumb for most maintenance matters is to deal with them as quickly as possible. We have a dedicated team responsible for the day-to-day management of your property, to make sure it can be given the attention it deserves.
Leaving reported maintenance issues unattended, even if they’re not urgent, can make tenants feel like they’re not being listened to and that they might be better off elsewhere. It can also be a more difficult to talk about rental terms if it looks like you haven’t been holding up your end of the bargain.
Keeping tenants happy is an important part of renting your investment. Talk to us today about how to make it happen.