The two biggest challenges investors face are finding good tenants and ensuring a property remains occupied. Vacant periods can be stressful; they undercut your earnings and compromise long-term income projections.
If you want to benefit from your investment, it’s crucial to keep your property occupied.
Fortunately, with some forward planning, good management and extra effort, you can ensure your property never stays vacant for long.
1. Investigate Demand before Buying
Investing is about exploiting current and potential supply and demand. Buying in a location with high demand is the simplest way to decrease your vacancy rate. The property’s size, type and characteristics also impact on its rental appeal. You should aim to purchase an investment property that caters to the demographic of your area.
2. Meet the Market on Price
The property market is highly competitive. Reducing the rent by even $5 per week can make all the difference without making much of an impact in your overall rental income. The cost of a vacant property far exceeds the cost of reducing the weekly rent by a fraction. Offering extras like a gardener for high maintenance yards is also a great tactic.
3. Keep the Property Well Maintained
First impressions have a big impact. A property that is well maintained and nicely presented is one of the first things that will attract a suitable tenant.
Overgrown yards, leaks, damaged fittings and other seemingly minor issues send a message that the owner doesn’t care about the property. This can attract tenants with lower standards of cleanliness and maintenance, costing you more in the long run.
A fresh coat of paint, a nice garden or some new carpets can all increase the value of your property in the eyes of potential tenants.
4. Advertise Strategically
It’s important not to advertise immediately after your current tenant gives notice. Instead, wait until you can legally gain access to the premises to ensure that it’s clean and tidy. Prospective tenants will want to view an advertised property and you will want to make sure it’s in pristine condition.
While you have to be wary, you shouldn’t leave advertising too late either. If you’re organising viewings and signing leases while the property stands vacant, you’re losing potential income.
Investors should also consider timing. For example, December is generally a quiet period for leasing houses, whereas January is far busier. Property owners should organise leases to avoid the property becoming vacant during quiet periods.
iLender helps investors to grow their wealth and secure their financial future in the New Zealand property market. Our Auckland based mortgage brokers help investors locally, across New Zealand and overseas.
Call us today on 0800 LENDER (0800-536-337) or contact us online with any questions you have about property investment in NZ.
