‘Tenant is king’ in challenging rental markets
Investors in some Australians are struggling in a market of high rental vacancy rates. The situation is creating a challenge for landlords trying to mininise the number of days their properties sit empty.
As the saying goes, the ‘customer is king’. In the world of real estate, it’s the tenant who reigns, especially in today’s weak rental markets.
Landlords, therefore, need to work hard to keep their tenants.
If your landlords have good tenants, you need to encourage them to continue to stay in the property. You can do this by providing higher levels of service.
One of the most common reasons tenants leave a rental property has to do with the fact that their landlords fail to address basic maintenance issues such as fixing a broken airconditioner or faulty shower. This problem is particularly common with landlords who manage their own properties.
During periods of low vacancy rates, when tenants struggle to find accommodation, landlords who provide a lower level of service can get away with this behaviour because tenants have few other options.
However, in the current property market, dissatisfied tenants can easily move to a better property if the landlord provides a sub-standard service.
If you are too busy to manage your property, it makes sense to hire a professional property management company. Doing so will ensure the property is inspected regularly and kept in a good condition. It also means that the tenant has someone they can easily contact to address problems at the property.
The best way landlords can reduce their vacancy rates is by selecting a property management company that can deliver an excellent level of service, and has a proven track record of achieving low vacancy rates for their clients.
A good property management company will be able to give the owner good advice on how best to present the home to prospective tenants. It will also know how to market the property through a targeted advertising campaign.
Limnios Property Group has found that in Perth’s inner city, if a property is correctly presented, marketed and priced at the start of the listing, it will lease within a short period.
We are also finding that properties that are maintained to a high standard will lease much faster than poorly maintained properties.
This is because poorly maintained properties are generally overlooked by prospective tenants in a weak rental market. It is, therefore, important that before a rental property is marketed, the landlord takes time to ensure it is presentable.
The tenant is king in today’s market. Landlords would be well-advised to hire the right property managers to service these kings.
