Jul 08, 2014
I occasionally hear of landlords who take the stand that "Well I was getting $320 per week all last year so I will hold out until I find a tenant willing to pay that again”. So they hold out for weeks and weeks when the property could have been re-let within days at $300 per week.
The market is what the market is - it brokers no argument or persuasion. If the market is only willing to pay $300 this year then that is what it will take to get the property let.
I know that personally, I would much rather have my rental property bring in an income of $15,000 (50 weeks x $300) than $12,800 (40 weeks x $320).
Whilst this seems obvious to most, there are literally hundreds of landlords who are receiving much less than they could by ignoring the professional advice given to them by their property manager.
Rent levels are influenced by several things, but as in all markets the main factor is supply and demand.
If there are numerous houses empty at the same time as yours, then of course, prospective tenants are bound to compare them and commit to the home that represents the best value in their eyes.
I watch with pride when I see our Letting Consultant Amelia work tirelessly to secure tenants for their landlords. It is enlightening to hear her discussing with a landlord the factors that we can alter to help get a property let quickly. If it is something small like a little dust or an unpleasant odour in the property, they will often take care of it themselves. If it is long lawns or untidy grounds, or minor maintenance they will recommend a small investment from the owner to get this fixed.
If the rent is too high they will recommend a rent adjustment. Our team takes real pride in minimising vacancy periods for their landlords, often meeting tenants in their own time whether that is after hours or even on Saturdays or Sundays.
The fact is that rent levels have fallen in our market place. This is driven partially by high unemployment levels, but mainly by the high number of houses made available as a result of families leaving our island state to chase higher incomes in the boom mining areas. With the value of their home being lower than it was some years ago many families have decided to not sell but to rent their property out.
If your rental property is currently empty or about to be, please remember, your property manager knows the market much better than you (and if they don't, it’s time to find one that does!). If they recommend maintenance or rent adjustments - listen to them. They are objectively trying to maximise the rent that you receive for your property.