4 tips that will help landlords maximize rental returns
North Lakes and surrounding areas in the Moreton Bay Regional Council have been slated as the fastest growing Urban area on the East Coast of Australia. Westfields Regional Leasing Manager recently advised on the impressive growth in the area. The close proximity to Brisbane and Transportation Facilities, the area has become popular with owners and tenants alike.
Meeting the demands of landlords and tenants, we have seen new developments in area’s from Caboolture, Morayfield and Burpengary to Griffin, Mango Hill, Kallangur and Murumba Downs. As a result of the ongoing construction investment led inner city apartment construction and first home Buyer Incentives , we are seeing some challenges in the housing rental market with vacancy levels in Moreton Bay growing to 1.9%.and Caboolture 1.6%. Time on market for rental properties has increased to 30 days in the area as a whole but can be substantially lower if the leasing process is professionally managed in order to manage through this short term challenge.
Nigel Lucas from Ray White Caboolture and Burpengary advises that the key to maximizing owners overall rental income is achieved by following a few simple steps:
- Research the Rental Market – Setting the Price
Nothing has a greater effect on property returns than having a vacancy. A vacancy has no income for the Investor. Maintain the rent at 95% of market value to attract more potential tenants.
Ray White will research the market and advise on comparable rental properties. When setting the rent the owner should bear in mind that if you go for an extra $10 a week for a $520 a week property, and it takes an extra week to rent it out, the owner will take a year to recoup the lost rent. As a general rule of thumb, if a property has not been let within 10 days of being vacant, reduce the asking rent by 5%. The Investment will produce a better result if let at 95% of the asking rent as opposed to being vacant at 100% of the asking rent.
Who stay longer, have fewer repairs and pay the rent on time.
Experienced Investors know:
|Rent||Days Vacant||Lost Rent|
|$450 pw||7 Days||$450|
|$450 pw||10 Days||$642|
|$450 pw||15 Days||$964|
- Flexible Inspection Times
Tenants are now used to booking accommodation, Airline Tickets, Hotel Rooms, and Car Rentals 24 hours a day, 7 days a week.
At present, the most typical route for Real Estate agents to handle tenant enquiries is by posting open for inspection (OFI) times with the expectation that tenants will see the times and go to the inspection. Times are regularly posted late in the week in the event that the property is rented in advance. Tenants have no confirmation that the Property Manager will open the property, especially on the off chance that it has been leased preceding the OFI time.
Ray White Caboolture / Burpengary use an online booking software that allows a tenant to book a time that suits them. Once a Tenant has booked, they get a confirmation of the inspection time (by means of email and/or SMS), with an ability to change or cancel their booking. The Ray White Property Manager receives a confirmation email that a tenant has booked a viewing so they know early who (and what number of) prospective tenants can be expected to come through the property. Ray White Caboolture / Burpengary set multiple OFI times ahead of schedule with the knowledge that if the property is leased, they can cancel the appointment immediately and advise all booked prospective tenants.
Once an application to rent has been made, prospective Tenants receive updates via email or SMS on where their applications is up to. In short, tenants love the process.
- Presenting and Promoting the Property
Tenants interpret the presentation of a property with property owners and agents preparedness to undertake maintenance during their tenancy.
The type of tenants who take care of their belongings and property will most likely look for a property that’s in top condition to begin with. Take the time to clean the property thoroughly and fix any minor repairs to ensure it’s in top shape before showing it to potential tenants. A clean, tidy, and well-maintained property will attract like-minded tenants.
Have high quality photos, preferably a floor plan and promote through various top websites.
Ray White Caboolture / Burpengary promote our rentals through websites including raywhite.com, domain.com.au, realestate.com.au, realestateview.com.au, homehound.com, onthehouse.com.au, homesales.com.au, rentbuy.com and squiiz.com.au.
- Tenant Screening
During any background check, the screener will look at factors like references, rental history, and income. The only way to know for sure on how suitable a tenant is, is to check references: How long did the applicant live at the previous property? Did they pay the rent on time? What type of condition did they leave the property in? Was it clean and well-maintained? Did they keep pets? Did they allow anyone else to live on the premises without notification?
In lower social economic locations, tenant application screening may result in a high percentage of rejection of applications purely based on their ability to pay the rent. Once Ray White Caboolture / Burpengary have processed a rental application, prospective tenants are managed through our Property Management System allowing us to match new rental listings with their rental requirements.
To maximize the rental return on your Investment in Moreton Bay, contact Nigel Lucas on 0413 351 603 or email firstname.lastname@example.org