So your neighbour is pulling in $500 per week in rent and you’re only getting $480 for a comparable property. What’s better for you financially? To get the best possible rental price, or reduce the vacancy of the property?
- $500 per week for 6 months is $13,000
- $500 per week for 6 months but with a vacancy of 3 weeks is $11,500
- $480 per week for 6 months is $12,480
- $480 per week for 6 months but with a vacancy of only 1 week is $12,000
Of course, your agent wants to get you the maximum price for your property because they receive a percentage – the more you earn, the more they earn!
But, leaving your property sit vacant for more than a week or two can be more detrimental to your bottom line than you think.
People also talk about the benefits of keeping your tenants happy by only charging them a sensible rent and not pushing their limitations too much. This can be true, but this is really about you. You own investments for your own benefit, not your tenants.
So do your calculations and have a game plan in mind for when your properties become vacant. And most importantly of all, use a property manager you trust and who knows the market.