- Posted By Jasmine Adams
Broome’s vacancy rate is now above 5% (and climbing as we head towards the end of the tourist year). We have been closely monitoring the days on market of each rental property. The average days on market is 45 days though this varies for a host of reasons. The average days on market is the date when a property was first listed for rent on For Rent websites and the lease contract date. That is the greater the number of leasing days may indicate a tenant’s market while a lower days on market may indicate a landlord’s market. Nevertheless, the average time a property takes to lease can depends on how the property is priced and how it is presented from the beginning of the advertising period.
What can landlords do as we head towards our slower leasing months and more challenging period? Here are some key tips for Owners when it is a “Tenants’ Market”
1. Be open to negotiation – if a property has not rented consider reducing the rent or make lease terms shorter ie 6 months. Yes the returns will be lower but a 6 month lease will get your property back into a high demand period. In addition a reduced weekly rent is preferable to a vacant property. Consider more flexible contracts in order to attract or keep tenants.
2. Offer incentives - Offer incentives to make a property more appealing and try to retain where possible the current tenant. Deal with any requests for a reduction in rent sympathetically and realistically. Consider accepting pets, adding extras such as garden maintenance or a week’s free rent are all ways that landlords can incentivise tenants and prospective tenants.
3. Ensure air conditioners and maintenance are responded – it’s worth going the extra mile. Respond immediately to any queries, ensure the property is compliant and pre-empt maintenance issues to minimise inconvenience to Tenants.
4. Improve presentation - The appearance and presentation of a rental property is of paramount importance in attracting tenants in the current market. Think about what the property lacks and where upgrades and improvements could be done in order to make it more attractive.
5. Be creative with the marketing – In today’s challenging market, it is impossible to lease a secret so you need to be able to reach the widest possible audience and attract as much interest.