Warning: This article contains elements of self-promotion.
It is no secret that Wellington’s rental market has been a hot media topic of late.
With rents rising 6.8% from January 2016 to January 2017 attention was inevitable.
However, there are now calls from some quarters that finding tenants is more difficult and that investors should lower their rent or face up to four-week vacancies.
In Auckland, there are 1,805 listings advertised on popular rental search sites whereas Wellington has only 570.
The numbers simply don’t add up. 🤔
Should you really have to take a hit on your returns simply finding a tenant, or is there more that you or your Wellington property management company could be doing for you?
It is well known that historically, Wellington’s rental market peaks during January, February and March with the influx of students and most yearlong tenancies expiring.
The winter months are notoriously slower, with many tenants having found suitable accommodation already and the students being largely catered for.
It has been recorded that the market rent historically drops over winter, as you can see below its the same in Auckland.
It is certainly true to suggest that there is a lower amount of tenant interest currently (July 2017) than in January.
The suggestion, however, that landlords should allow a four-week vacancy period and can expect to make less than the market rent to avoid this problem is, in our opinion, incorrect.
Marketing your property for tenants should be done in a manner similar to that used to sell your home.
He who doesn’t advertise to save money is the same as he who takes the hands off the clock to save time!
When it comes to tenanting there are some very basic steps to take in order to make sure that you are inviting as many professional tenants as possible.
Scheduling viewing times as soon as you place the listing online is essential.
Looking for a property to rent can be stressful.
A majority of renters won’t enquire about a property if there are not already scheduled viewing times as when they look, they generally look at a large number of properties and enquire about them all.
Give tenants the best opportunity to come to your home, and present yourself as an organised and responsible landlord straight off the bat.
Carefully selecting photos is also essential.
If you or your property manager are taking photos of the property with a cell phone, there is a high chance that your online listing will get lost amongst the others, or may not look as attractive to tenants.
Make your home stand out and invest in either a high-quality camera or a high-quality photographer to capture your home in its best light.
Now if you prefer to do these things yourself, buying a half decent camera now a days is pretty affordable.
As you can see.. at JB HiFi you can grab one for less than $399.
Once again, remember the goal is to drive people to your property above the others.
As simple as these things may sound, they certainly help when it comes to attracting the right tenant.
It begs the question then, with these steps being so easy to follow, why should landlords be expected to lower their rent to avoid a four-week vacancy?
Lowering rent impacts yields and can cause tension with your tenants if you then try to adjust to market rates during tenancies.
It is of course, in the best interest of the company responsible for letting your property that you, as the landlord, receive the best possible price for your rental property in line with the market.
Tenanting a property is formulaic.
If you or your property manager miss a single step, then you can expect to miss out on the best tenants.
This goes to show the importance of having a structured, considered marketing strategy in place, from getting the photos right to writing a detailed description of the property.
If correct procedures are followed from the beginning, it makes for smooth sailing, and the tenants will come flooding in.
If you’re struggling to find a good quality tenant and would like an obligation free call to find out how you could better be marketing your property, please give one of the Tommy’s team a call today on 04 979 6363.
In the last month, the team have tenanted 8 properties taking on average just 10 days.