An empty rental property burns a hole in your pocket as an investor so you need to minimise this risk by drawing up a pre-leasing plan with your property manager to find a new, trustworthy tenant as soon as the current one leaves.
Good tenants who pay their rent on time are gold, and you should do everything you can to keep them. However, renters – even the best ones – eventually move on.
Depending on the market and your location, it can take up to three months to find another good tenant. Marketing, inspections and the checking of references all eat up time, during which you’re not earning income.
To avoid this, your property manager should approach your tenant a few weeks before their lease expires to gauge their plans. Early notice of their intended departure could save you thousands of dollars in lost rent.
Try these tips to find a new tenant quickly:
- Seek advice – A property manager will guide you on improvements that will allow you to increase the rent and fill the vacancy quickly.
- Property assessment – Request an inspection to identify any work that’s required once the current tenant departs. You may decide to update the kitchen, replace old showers screens or lay new carpet.
- Cash reserve – Set funds aside and ask the property manager to book in relevant tradespeople. You want them in and out of the property as quickly as possible. Time is money at this stage.
- The search – Your property manager should have potential tenants on their books. If not, they will place your property on popular websites, such as Domain, Realestate.com.au and rent.com.au. Consider an additional investment to be a featured property.
- Photo-friendly – There’s no better way to capture interest than good photography. Most landlords can’t be bothered, so your commitment to ensuring your property is well-presented will be a competitive advantage in a crowded marketplace. Ask your property manager about virtual staging options which can be an affordable way to show the property with stylish furnishings through clever photo editing.
- Street exposure – Signage will win the attention of those looking around the suburb for a place to live. If it has a QR code, potential tenants will use it to find the webpage featuring your property.
- Stage it – Installing rented furniture – known as “staging” – is a common strategy to find a tenant and get the rent you’re asking. This is worthwhile if your property is prestige and at the top end of the market – otherwise, just using virtual staging should suffice.
This article is provided for general information only and does not take into account the specific needs, objectives or circumstances of the reader. Before acting on any information, you should consider whether it is appropriate for your personal circumstances, carry out your own research and seek professional advice.