Like many industries, property markets run in cycles according to supply and demand. So what can be done to lease your property in a tenants’ market?
When supply catches up to demand, it’s natural for the rental market to shift in favour of tenants.
While it’s inevitable that at some stage, under the supply and demand model, the momentum will swing back to the advantage of landlords, what can be done in the meantime?
One of the biggest mistakes made by landlords in a tenants market is to refuse to meet market demand
By failing to adjust rents or contract terms, landlords expose themselves to significant financial losses.
This might mean having to drop the rent or to offer more flexible contracts that will suit tenants, such as a 6-month contract or pet-friendly contract.
A $10 or $20 loss in weekly rent is negligible compared to a property that remains empty for several weeks because it’s overpriced.
Landlords should also present their properties to the highest standards, ensuring they are clean, enjoy plenty of natural light and the gardens are well maintained.
When in-between tenants, it’s a great opportunity to complete renovations or odd jobs that will help attract prospective tenants.
A fresh coat of paint, new carpet, installing modern fixtures and fittings or other cosmetic upgrades will make a property more appealing.
In the event of an expiring lease, negotiations for a new contract should be undertaken well in advance.
Landlords should engage tenants up to 75 days before the lease is due to expire to determine their tenants’ intentions.
From there, landlords can start to negotiate the terms of a new lease, or start planning the search for a new tenant.