Friday, May 11, 2012

Are We in a Tenant Drought?

“The Real Estate Institute of SA released the quarterly survey data today saying it is evident that available stock is sitting on the market for little longer with price and location being keys to a fast rental”
“Right across the State REISA members are saying that the market has been a little flatter for over 12 months and the level of activity is not as high as previous years,” REISA President Mr Greg Moulton said.
“New properties for lease are often taking up to 4-6 weeks to rent, even at the right price and this is a distinct market change from tenants struggling to secure properties several years ago.”
So are we in a tenant drought? Do we have an over supply of properties? Or is it that rental prices need to be aligned with the current market rather then expecting to have to same return as previously.
Honestly the market at the moment is not performing as well for landlords as it has previously, unfortunately this means realigning the price of your rental property and it can be disappointing when you don’t reach the amount that you want or may have previously received.  It is important to weight up the weekly rent your losing with it sitting vacant compared to the amount you are taking off the weekly price. It may be worth lowering your price by $5 -$10per week rather then have your property sit vacant for 4-6 weeks.
It’s essential to focus on what you can achieve for your investment in the most time effective way. Test the water with a higher price, when you see you are not receiving enquiry take action immediately the longer you wait the harder it will be to rent and you may find yourself lowering the price nevertheless.
With a more competitive price against other properties in the area, you will find yourself with a larger amount of interested parties and who doesn’t want to have a choice of tenant?
As stated from REISA above price and location are the keys to a fast rental, short of moving your property to a better location why don’t you stay in the game and amend your price to ensure your investment keeps generating income.
Advising landlords on how to ensure a good tenant is found as quickly as possible, Mr Moulton said that staying in touch with your local professional property manager was crucial, as was regularly accessing this REISA data to get an honest insight into the current market.
“In tougher times, it pays to have a professional property manager working with you to get that property rented with a quality tenant.”
There are tenants out there but with current market conditions it’s important to know what your property is worth so you can tap into those tenants and get the best quality for your property.

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