Perth’s rental landscape has changed considerably since the height of the resources boom when competition was so intense prospective tenants routinely offered more than landlords were asking.
With the vacancy rate currently sitting at 5.7% competition is fierce among landlords and property managers looking to secure reliable, long-term tenants.
Though marketing your property for rent may fall under the list of responsibilities your property manager should necessarily take on, there are certain measures prospective landlords can take to ensure their property stands out from the crowd.
Abel McGrath Property Group’s Specialised Investor Service Manager, Jason Goncalves, says pricing your investment property correctly has never been more important than now, leading into the second quarter of 2016.
Mr Goncalves says arriving at the correct price should involve factual rental reporting, factoring in days on market, as well as looking at current comparable properties available and the attributes other homes feature.
“The first step should be to provide the landlord with well-researched advice which is in line with the current market whilst keeping their best interests in mind,” he said.
“In a competitive rental market it makes sense for landlords to be flexible with their rental rate and to ensure they are being guided by their appointed real estate professional to look at ‘the bigger picture’.”
“In a renters’ market one of the most important things to remember is to ensure you get the BEST tenant not just the tenant who will move in the fastest and pay the most,” Mr Goncalves says.
He says when considering rental applications, landlords should consider all applications and deal with them individually with the assistance and advice from their property manager.
“Efficient and thorough reference checking procedures should still be of the upmost importance to the property manager and landlord, and should not to be compromised in this market.”
Mr Goncalves says creative marketing and advertising to ensure your property stands out from the crowd is vital to ensure you get the best results.
“The most effective marketing campaigns should consist of professional photography, descriptive advertisements and creating content that will engage and entice prospective tenants to ‘buy’ into the lifestyle as well as the property.”
At times like this, the proactive and well structured real estate agencies will shine through the slower market as they offer ‘best practice’ strategies.
He says extra enticements are sometimes advertised upfront to attract tenants initially in a more competitive market.
“These could include a rent free period, gift vouchers or the inclusion of gardening and pool services,” he says.
“The advice for landlords is to be responsive to market conditions.
“What we are finding is properties that are difficult to lease are because owners are not absorbing the realistic information provided or altering their expectations in line with changes in the market,” he says.
“Or they are offering properties which haven’t been well maintained over the years and still attracted interest or they are block value houses which will be demolished at some point and the demand no longer exists in these cases.”