Standing out of the crowd: A powerful tip for Brisbane landlords with a vacant property
The asking rent is usually the last thing we want to reduce but in a competitive rental marketplace inner-Brisbane landlords are looking for ways to secure a tenant, a good tenant, with minimal vacancy. So here’s our tip and please, hear us out before you dismiss this as an expensive option!
Reduce your rent by a sizeable chunk. We’re talking 5%. Enough to put some daylight between you and the other rental properties that are very similar. To make your ad compelling and to make your property the most appealing in its price range. And here’s why.
There are incentives you can offer and we do have other tactics we recommend for our clients. But the way most tenants find your property is now limiting the impact of some of these such as rent-free offers, Ipads, holiday vouchers etc. The major web portals now produce an online search result that only shows the main photo, the bed/bath/car numbers and the price. No headline. No description. Nothing but the basic info until tenants click into the ad.
And when there’s a lot of them in that search result, that all look similar, guess which ads they’ll open? The cheapest.
We don’t make this suggestion lightly as a key role of our Brisbane property managers is to help our landlords achieve the highest possible rent. But our strategy is this: Offer the property at say $475 when similar homes are $500. But do it with a 12 month lease that has a built-in rent increase back to $500 at the 6 month mark. Most landlords will nibble away at their $500, dropping $5 or maybe $10 after a couple of weeks vacant. We battle the competition to get the best result we can.
But the simple maths of a 5% drop for 6 months (in our $25 example it’s $650 in “lost” rent) equates to just over 9 days’ vacancy. So it compares really well to a month or more that you might sit empty while you’re battling to stand out of the crowd and attract tenant enquiry. Importantly, we recommend the asking rent is 5% below the competition from day one, when the property ranks highest in the online searches and attracts the most attention. And don’t forget the pre-agreed increase to get the rent back to where it should be in 6 months (unfortunately the Act won’t allow an earlier increase….)
Our tenant demand is strong and our property managers are attracting high enquiry numbers. But there’s no doubt the supply of inner-city property is growing and competition can be fierce. We’d like to help all our clients maximise their returns, and thinking outside the box on your asking rent might just be the answer.
If your property’s in Brisbane’s inner suburbs we’d love to help with its management. Please call our Property Management team on 07 3214 6888 or firstname.lastname@example.org