Scott's Weekly Column

On vs In the rental market

Our property management team at our Coffs Harbour and Sawtell offices have been on fire over the past few weeks with dozens of properties leased. There are many reasons why our landlords experience higher than industry average yields and lower than industry average vacancies. One of the main reasons is that our team understand and can convey to our landlords the importance of attracting the best tenants. They do this by explaining why it’s so important that their investment property is “In” the rental market vs “On” the rental market.

 In simple terms if there are three identical homes and two are for leased at $400pw and the other at $420 pw, then it makes sense that the two better value homes will lease first to the best available tenants. Some landlords will say, “Well that’s OK mine will lease next.” Well let’s consider that the following week another two identical homes become available for lease at $400pw, the next week another two become available for $400pw and so on and so on.

It doesn’t take a rocket scientist to work out that the home asking $420pw will stay vacant and not lease until:-

1) the rental market rises, OR

2) there is no competition OR

3) they are forced to accept a risky tenant.

Just like $20,000 in price may be the difference between a property selling or not, in the rental market $20 per week can be the difference between having a property leased or vacant.

If you’re looking for professional advice on your rental property why not contact one of the award-winning Nolan Partners property management team today, our advice is free but a bad tenant or a vacant property can cost you $$$thousands!!