It’s a Tenants Market in Property Management

We’ve been seeing a seismic shift in the rental landscape over the last few years. All the data shows that it’s definitely a tenant’s market. The Real Estate Institute of Western Australia found that leasing activity across Perth’s rental market leapt up by 17 percent in late 2016. Equally, there is still a relatively high supply of rental stock, which means tenants can pick and choose. All the signs point to 2017 being equally competitive.  REIWA have said that, unlike the eastern seaboard, rental conditions strongly favour tenants in WA. Tenants have a lot to choose from, which means that landlords need to stand out to attract good and long-term tenants.

Tenants these days are far more savvy than in the past. They’ll shop around and know the market intimately. They expect a high level of service and a good quality property.  They will have no qualms turning down properties that they think are sub-par.

So, as a landlord, you’ll need to employ strategies to attract strong and long term tenants. Selecting the right property management agency is crucial.

Here’s what you need to look for:

Marketing

In a cutthroat environment, you live or die by marketing. Slick, attractive and sophisticated marketing stands out and is reassuring to tenants. It’s the first impression tenants will have of your property. This means looking for an agency that will present your property in the best way possible. Think of the agency as being a brand emissary. Find out what their strategy is for standing out on real estate websites. Perhaps they’ll take out featured ads to attract more traffic? Or they may use larger than average photos of the property to boost views. Or they may have a cross platform strategy, whereby the property traffics across mobile, desktop, laptop and tablet. A sophisticated digital marketing strategy is key to finding tenants.

Make the property presentable

Some tenants will be able to see beyond a messy, untidy and rundown property, but most won’t. There are many quick fixes an agency can undertake to present the property well at a low cost. These could include: fresh paint; new lighting; styling with attractive furniture; upgrading the appliances or adding new systems such as air conditioning (always popular in Perth). Also, it’s worth ensuring the gardens and exteriors are well presented and cultivated.

Seek professional advice from an agency and be open to negotiation

It’s definitely recommended to get help from professionals who’ve spent their careers managing property. Go in with an open mind. If the agency, for instance, advises you to lower the rent they’re thinking of your best interests. Remember the market always dictates the price not you. It’s far better to have your property tenanted and earning an income than sitting vacant and bleeding you money. The agency will have considerable knowledge of the market and where your property sits in the current climate. Ask for what the agency’s strategy will be for filling your property with a tenant.

Find a Property Manager that is cost effective and has the runs on the board

A good Property Manager will go out of their way to attract and keep quality tenants. They may offer incentives such as allowing pets on the premises or free garden maintenance. Maybe they will use a service like Rentbond that advances the tenants their bond, allowing them to pay it off over time, interest free. This kind of thoughtful convenience is something tenants will greatly appreciate. They’re likely to stay loyal as a result. There are many small things that Property Managers can do to let tenants know they care for them. For instance, welcome gifts when they move in. Or using innovative software to help tenants get connected quickly and smoothly. All these kind of things add up and your tenants will feel looked after.

So in conclusion, choose smartly and carefully when seeking out a Property Manager.

It’s crucial to find one that has exceptional customer service, innovative strategies and state of the art services that streamline convenience and communication. Property management is a numbers game. You want to ensure you have someone working tirelessly on your behalf to find and keep tenants so you have peace of mind and don’t end up out of pocket