With the rental vacancy rate in WA well over 5%, some Landlords become hungry and desperate to find that elusive tenant. Unfortunately this desperation leads to poor decisions and a lot of the time, the outcome isn’t pretty.
A recent investigation by The Weekend West revealed about 130 tenants are disappearing from rental homes every week without leaving a forwarding address to settle bond and damage issues.
Owner of PEB Real Estate Michelle Anne Farbon tells us of the three key aspects that have changed in the rental market over the past two years.
1. Landlords have needed to become savvy marketers
Rental prices fluctuate and the conditions at the moment highlight just how important it is to keep up to date with how others are marketing their investment property. Here are just a few hooks that people are using to find the right one:
- Pricing – Dropping the rent by $50 will cost $2600 over 12 months. How much will a vacant property cost?
- Promotions – Attracting tenants with a free iPad, overnight stay or a week’s free rent are proving to be very successful
- Add-ons – More Landlords are starting to allowing pets, give free WIFI or include free gardening in their leases
2. Good tenants aren’t as easy to find as they used to be
“Don’t get desperate and approve just anyone to look after your house.” Michelle says
“I’m stating the obvious but at time of stress, the obvious sometimes gets overlooked.”
“It’s hard to find a tenant but it’s not worth taking the risk of accepting an application from a prospective tenant that doesn’t have references or ones that cannot be contacted. If they can’t provide you with a positive history, then wait for someone who can.”
“On the other hand, if you have someone with good references but they have a pet or other demands such as installation of air-conditioning, it might be worth considering the requests to ensure your property is kept well.”
3. DIY Property Management is becoming more difficult
The escalation of drugs and other antisocial behaviour in the community is becoming a safety concern and many DIY landlords are opting to employ the services of a property manager for privacy concerns.
Michelle says “over the 25 years that I have been in Real Estate, I have never seen the market so difficult. Property Managers are working twice as hard as they were five years ago with more vacant properties than ever on their books.”
“Being ahead of the trends and using the right strategies to attract reliable and responsible tenants is essential for any landlord.”
Read our blog for more reasons to use a property manager...
For more advice, Michelle can be contacted on 1300 187 894 or email us
*This article is for general information purposes only. It is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser.
PEB Property Group is a complete financial planning advisory service for Perth families. Offices are located in Inglewood and Willetton, Perth, Western Australia and offer - Financial Planning · Finance Broking · Property Management · Real Estate Sales · Property Investment · Development.
PEB Finance is a trading name of PEB Brokers Pty Ltd ACN 604 784 401 | Australian Credit Licence 389510 | Credit Representative Number 476313.
PEB Real Estate is a trading name of PEB Real Estate Pty Ltd (Licensee) ABN 33 604 199 617 | Triennial Number RA70508.
PEB Financial Planning is a trading name of PEB Group WA Pty Ltd ACN 142 958 254. Rebecca Howarth and Howarth (WA) Pty Ltd trade as PEB Financial Planning. Rebecca Howarth (ARN 244928) and Howarth (WA) Pty Ltd (ARN 433328) are Authorised Representatives of NEO Financial Solutions Pty Ltd. AFSL 385845 | ABN 64 141 607 098.