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How to reduce the risk of vacancy

No one wants their rental property to sit vacant. Top tips to avoid rental vacancy include maintaining your property in good condition and taking a strategic approach to advertising and leasing.

Meet the market on price

“A property simply won’t appeal to tenants if it’s priced too high,” says Tegan Murphy, residential property manager at Melbourne’s Wilson Agents.

“Even reducing the rent by just $5 per week can be the difference between letting your property and having it sit vacant.”

“Five dollars per week won’t make much of a dent in the overall annual cost of owning a rental property; yet, if the property sits vacant, the cost to the landlord can be significant because each week that passes is another week in lost rental income.”

Maintain your property in reasonable condition

“Try to view your property through the eyes of a prospective tenant. Having blinds replaced or having the interior painted can make a huge difference, and this kind of improvement isn’t expensive.”

Murphy says a fresh coat of white paint is always her top recommendation to landlords because it makes any interior look bright and inviting. She also says replacing carpets is a good way to appeal to prospective tenants.

Other cost-effective improvements include replacing kitchen cupboard doors, installing a new shower curtain or replacing worn out lino.

Let it fast

Murphy says properties that don’t let within the first two weeks are at risk of sitting vacant for longer periods.

“Interest in a property peaks within the first day or two of it being listed. That’s when you get the most enquiries and you really want to see the property let within the first fortnight.”

“As time goes by, a property listing slips further and further down the search results on real estate websites, as newer properties come onto the market,” explains Murphy.

“As your property moves down the list, prospective tenants assume there’s something wrong with it and no one wants to live in it. Many people won’t even see the listing, as lots of tenants don’t search past the third or fourth page of online results.”

Don’t advertise too early

While it may be tempting to advertise your property for lease as soon as the current tenant gives notice, Murphy says this is a mistake.

“Don’t advertise the property until you can legally gain access to it, you’ve organised a mutually convenient inspection time with the outgoing tenant and you know that it’s clean and tidy.”

“As soon as people see it advertised, they want to view it. They don’t want to wait. Ideally, you get a good number of people through in the first couple of opens, and sign up a new tenant to move in the day after the previous person moves out.”

Timing is everything

Murphy says December is often a quiet time for the rental property market.

“When we let properties in December, we sign the tenant up to a 13-month lease, so if they vacate at the end of the lease, it’s in January, which is much busier.”

“You don’t want to fall into a cycle of having to find a new tenant every December because you run the risk of it being vacant over the very quiet weeks around Christmas.”

Make it easy

If your rental property has a garden, you can attract and retain a tenant by including basic gardening as part of the rent.

“If you pay for someone to come and mow the lawn, you keep your tenant happy and the win for you is that the garden doesn’t end up an overgrown eyesore that’s costly to bring back under control.”

Keep a good tenant

A sure-fire way to avoid rental vacancy is to hang onto your tenant. Murphy says it’s worth trying to keep a good tenant, even if it means forgoing a rental increase.

“The cost of re-letting a property can quickly soak up the increased income generated by a small rent rise. If you have a good tenant in place, consider keeping the rent at the same level in the hope that they will stay.”

Full article can be found at

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Property investing has long been a mainstream investment strategy for both novices and experts alike. Yet, as rewarding and effective as property can be as an investment, there are some pitfalls that are unfortunately all too common. These can render investments potentially ineffective, if not costly. Here are a few key areas to consider before buying a property, making offers or signing on the dotted line.

Poor financial structures

With property being a major purchase and one that attracts considerable costs in addition to the purchase price, such as stamp duty and legal fees, it is important to consider the ‘how’ of buying just as much as the ‘what’. Other than buying the investment in your own name, you might want to set up a family trust or use your superannuation fund and turn it into a Self-Managed Super Fund (SMSF), to undertake the purchase. Changing the ownership of the property later is going to be a costly exercise, so it is worth considering the options before you decide to buy the right property. Likewise, with the many loans and mortgage products out there, it is good to consider the options before you pursue the right property. Getting the right advice from suitable professionals with experience in structuring investment portfolios is highly recommended.

Lack of solid research and due diligence

Researching the market, looking at competitive pricing, rentability, vacancy rates, and proximity to employment centres, education, transport and shopping should all be part of your due diligence process for sourcing a suitable investment property/location. This should happen well before you even think about buying a property, which many investors overlook. In addition, undertaking research into infrastructure, both current and future, should be a priority as these can have a major bearing on the performance of your investment over time.

Using emotions to make decisions

The most important thing to remember is that you are not buying a home – you are buying an investment. All too often people make investment decisions based on emotion rather than looking at the figures that should be the basis of any investment decision.


Over-borrowing without a safety buffer

Interest rates are the lowest they have been and now is the time to buy. However, always allow yourself a buffer in case there is a shortfall in rent; the property requires unexpected repairs or maintenance, or the interest rate goes up.

All these factors can easily occur and you should never leave yourself in a vulnerable situation causing unnecessary stress or potentially even jeopardising your investment. A rule of thumb is to allow for at least 3 months of costs as a buffer as well a having all relevant insurances in place to minimise risk and protect your investment and your capital.

Lack of strategic planning

Fail to plan then plan to fail. It is important to have an investment plan. Know how you need to finance the property and how it will build your wealth. Know your short and long-term goals. Will it reduce your tax bill (negative gearing), add extra income or are you looking at buying with a view of renovating/redeveloping it later?

Property investing is a great wealth creation strategy. To avoid unnecessary risks and mistakes, it is always wise to seek advice from people that are experienced. Seek out qualified experts who hold their own successful property portfolios.

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Top 5 tips for landlords

Property investment is a long-term game. Finding and financing a good property are just the initial steps. To succeed, you need to plan for all possible contingencies.

Here are five tips on how to protect and grow your investments:

Read more here

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