An investor is not a happy camper when their rental property sits vacant for any length of time because it means that they are having to pick up the short fall to cover loan repayments. That is quite an understandable situation so what can an investor do to get that property let?
Let’s look at what you can do if there is not tenant on the horizon.
- firstly, check out your property management and make sure that they are doing everything they can to show the property
- is the property getting good exposure ~ if not you could look at getting a sign put on the property and/or doing some advertising
If the property is still not getting tenanted then you look at these options. Let’s say that you have a vacant property for which you are asking $400pw.
A Six Month Rental
If you were to reduce your rental by $15pw that would equal one full week’s rent over the six month period. So you would have to weigh up just how many weeks it could be before you rent at the full rental, or if it is worth trying to get tenants in immediately at the reduced rental.
Twelve Month Rental
With a full year rental you could offer the same deal and you would lose two week’s rent over the year. Alternatively, you could offer two weeks free rent which does help tenants with moving costs and this could be appealing.
If you go down this path then you would want the property manager to vet the prospective tenants and try to establish that they will last the full 12 months, in other words have some history of long tenancies behind them.
- If either of these options above don’t appeal you could offer free lawn mowing. For busy people it can sometimes be a bit of a trial keeping up with lawn mowing and this might be a turning factor in getting a tenant. Lawns usually only need to be mowed every 2 weeks or even monthly in the drier season. It is not a big cost overall.
- Perhaps the property needs a little upgrade such as a quick coat of paint or some fresh window treatments. Both of these may cost initially but are costs that will last for several tenancies.
If your property is not getting rented be pro-active so that it is being noticed and shown to prospective tenants. Ring the property manager each week for an update.