Let’s Look at How You Can Minimise Property Vacancies
No Landlord wants to face constant tenant turnover.
Tenants move out of their current rental property for many reasons. While some of those reasons are out of their control, others can be just a matter of preference.
Knowing why tenants leave can help you prevent an increase in vacancies.
We have identified the main reasons tenants leave and give you a solution for each that may help to minimise vacancies…
Reason Tenants Leave #1 – Relocating for Work or Schooling Opportunities
A new job or changing to a new school or starting university is often a trigger prompting tenants to relocate.
Solution: When purchasing investment properties it’s vital that you thoroughly investigate the local employment and schooling opportunities as well as the proximity to shopping, medical care and transport facilities.
Certain schools are so popular that tenants will eagerly look to live in the catchment zone so they can qualify for enrolment. Now, if you purchase in the right area you’ll face only very short vacancies.
Reason Tenants Leave #2 – Rent’s Too Expensive
A change in earning capacity, or an adjustment in the variety and number of properties accessible in the local area, can make a tenant think about moving.
There’s nothing you can do about a tenant’s earning capacity, yet you ought to consistently watch on how much similar properties in the area are renting for. For example; if you can rent a brand new home just a block or two away for the same price, you could lose your tenant to a property that appears to be an upgrade.
Solution: Your property manager should put together an annual Comparable Market Analysis (CMA) report to help set up the rent. Focus on things like wear and tear or where a property is becoming dated. You may need to upgrade appliances, fixtures, flooring and give the property a new coat of paint to attract the right tenants at the correct price. You must know your market and a good Property Manager will assist greatly in this regard.
Reason Tenants Leave #3 – Maintenance Problems
Tenants swiftly move on when they feel that appropriate standards of condition and repair are being neglected.
Continually having to manage leaks, mould or a broken appliance that hasn’t been replaced, can lead to a landlord being breached by the tenant, and in fairly extreme cases can lead to a Court decision permitting the ending of a rental agreement.
Solution: Attend to maintenance regularly and promptly to preserve the condition of the property. Staying on top of this can help keep the cost to a minimum.
You can almost ensure your property is always in demand when you paint and add new carpeting every 7-10 years. Tired properties will often pull in the less desirable tenants and often result in a fall of the income that the landlord can receive. Which can lead the property into a downward spiral that will take more effort and money to fix later.
Reason Tenants Leave #4 – Upsizing or Downsizing
Marriage, a new addition(s), divorce, and children leaving home or an in-law moving in can all influence how little or how much space is necessary.
Solution: The demand by potential tenants is consistently high for 3-4 bedroom homes with 2 bathrooms and double car garages/ spaces. Focusing on targeting properties with those attributes can protect you from the extremes of resizing – particularly in the more affordable suburbs. For example, 2 bedroom apartments have higher turnover than 3 bedroom houses.
Reason Tenants Leave #5 – Buying Their Own Home or Upgrading
There is absolutely nothing you can do about a tenant who has bought their own home – past wishing them well. It’s important to remember, that in our world where people value the nice new homes with their choice of décor and new state of the art appliances, they can be regularly found to be in less advantageous locations further away from transport, medical, and lifestyle facilities.
Solution: By keeping your property in good condition, taking care of upkeep and maintenance when it emerges, refurbishing like clockwork and keeping landscaping simple will assist your property to stay competitive in the rental market.
Reason Tenants Leave #6 – Neighbour Disputes
There is a well-known saying; “good fences make for good neighbours.” Other issues can be noise complaints, barking dogs, not feeling safe, or too many cars being stored or worked on at the property.
Solution: Always provide quality privacy fencing. Security screens and motion sensor lights can create a feeling of safety. Ask your property manager to find out how many vehicles will be parked on and in front of the property regularly.
Pets are great as long as the number, size and behaviour is under control. Sometimes it may be another neighbour who is the problem. Must try dispute resolution first, before things get too out of control.
For those who are looking to engage an experienced property manager so they can save time, money and headaches, contact us today!
Paul Hill Realty has built up a reputation of giving exceptional service as well as going above and beyond the normal expectations that a property investor can expect.
Paul Hill Realty are Specialists in Residential Property Management on the Northern Gold Coast from Southport to Ormeau and west to Wongawallan. However, know the complete South Eastern Qld area well so can list any property in South East Qld.