Landlords, it’s time to ensure you’re not leaving money on the table with your rental property. Here’s how you can secure top dollar from tenants and make the most of your valuable investment.
Don’t list it for rent until it’s perfectly presented.
“It's always good to make sure the property is presented at its best,” confirms Anna Jorgensen, rental department manager at Galldon Real Estate.
“If the property is showing some wear and tear, it's good to have it freshened up before we start advertising the property for lease. This might include new carpet, new blinds, re-painting, that sort of thing,” she adds. “We want people to see it at its best.”
And don’t forget, if it’s broke—fix it! It doesn’t matter if it’s as little as a door handle or as a large as leaking washers or dripping taps, repairs will add value to the property just as much as that fresh coat of paint.
Spend money to make money.
Of course, sometimes a small repair might spiral into large scale rectification works. An older cottage or terrace might have problems lurking which require a hefty outlay but undertaking the maintenance before the property is leased could save you a bigger problem in the future.
Then there is also more significant improvements or enhancements you might choose to voluntarily undertake before getting the property tenanted. Does it need ducted air-conditioning, or is it time to consider an updated kitchen or bathroom be installed? Chances are if you invest the money, a higher quality tenant and a higher rental return are likely.
As Anna can attest, it can translate into another bonus. “It may also mean that the property might actually lease quicker,” she adds.
Treat the advertising process the same as if you were selling.
Getting a swift result when renting can also come down to the advertising strategy. According to Anna, there are three main factors to leasing quickly, and at a quality rate: professional photos, excellent presentation and price. “If the property isn't well presented, people aren't going to feel keen and comfortable to make that their home.”
“Photography is something I do strongly recommend to everyone, so long as the property is well presented,” she adds. “We do tend to get more engagement and interest from people when we use professional photography. It can lead to a higher return, but also a quicker transition into leasing the property.”
There is also the option to have a property staged, as many vendors do in the Melbourne CBD to ensure they receive a high sale price. However, that is generally reserved for luxury or very exclusive rentals.
Understand the Property Market.
While you don’t need to be a property aficionado with intricate market insight to get the most out of your rental property, having a basic understanding can help. Failing that, the property team who are tasked with looking after your prized asset are on hand to explain the current state of play, including when the most popular time is to get your rental listed for a fast result.
“In the CBD, our peak period is January up until about Easter. Students, corporate clients and similar are generally signing new contracts or starting university at that time of the year,” Anna advises. “In saying that though, we do tend to have a mini-surge in June/July with the end of the financial year, with people starting new jobs, six-month contracts, etc.”
Keep the Average Days to Being Tenanted Low
Investments are designed to make us money, not bleed us dry. No landlord wants an empty property languishing without tenants in place, so it’s critical that the average days it takes to secure a tenant in the Melbourne CBD are kept to a minimum.
“If the property is advertised well, presented properly, and priced well, it should take anywhere between a week to two weeks to fill,” Anna reveals.
“We don't advertise the property until we can actually get people through the door and inspect the property,” she explains. “Technically, we can only conduct inspections in the last 14 days of a tenancy. So we tend to advertise about two-three weeks out, and then we can start inspections straight away. I find the most genuine interest we get is in that first week of advertising.
“We tend to secure a tenant before the tenant has actually vacated,” Anna says. “It’s a quick transition, with generally just a week in between tenants.”
If you’d like to know more about how we can help you secure top dollar for your Melbourne CBD investment, call one of our property experts on 03 9670 3330 or email