We understand that prompt and ongoing rent payments are the lifeblood for property investors.
Keeping rent at or ‘slightly’ below market rent levels has 2 main advantages;
- Ensure’s that the property is leased quickly after becoming vacant
- Entices tenants not to leave for a similar property at a cheaper rent
- One weeks vacancy is approximately 2% of the annual rental income
- So a higher rent is no good to the property investor if it takes an extra week or two to rent the property and tenants are turning over every 6 to 12 months.
HOW MUCH RENT?
It is worth noting that tenants are better educated today and are aware of the market rent for a given type of property in a given location. This information is readily available by simply navigating the various internet portal websites. By increasing rents to slightly below market rent, your tenant is aware that they are not being rent gouged and are more likely to remain in the property. This ensures full occupancy for you and a continuing income stream.We have found that the properties for which investors increase the rent to above market levels have higher vacancy levels than those who maintain rents at or slightly below market prices. Therefore, increasing rent to above market levels is a false economy as it results in a higher turn-over of tenants, high vacancy and lost income.
Our job is to maximise the income for your investment property. We achieve this by not only increasing rents but by ensuring that you have a steady income stream and lower vacancy rates.
Call us on 1300 781 824 to discuss how we can manage your property to ensure its optimal performance.