4 Tips for Filling a Vacant Property

by Dec 19, 2016Property investment

interior of an investment property

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.

About iLender

At iLender we put your best interests first and not the Bank – our advice is unbiased as all Lenders who we do business with pay about the same in commissions.

Although we are Auckland based Mortgage Brokers, we help customers everywhere in New Zealand and overseas with buying property in New Zealand, as we are very much about online and giving advice here and now!

Which Bank Lends You More?…

  When it comes to home loans, not all Banks are created equal. They all view and assess your application in different ways. Self-employed income, bonuses, or rental income may be treated differently, which can affect the amount you can borrow. Banks have...

When to go ‘unconditional’ when buying property

  If you are a first home buyer, or simply buying another home, or are an investment property purchaser, really understanding what going ‘unconditional’ means is important. The process of going ‘unconditional’ on a property is an important step in your journey of...

What benefits are there in having an ‘Interest Only’ Mortgage

  With mortgage interest rates changing and considering whether to fix your mortgage interest rate, you might also be wondering if an ‘interest only’ mortgage might be a good option. An ‘interest only’ mortgage can provide temporary relief, but it’s important to...

Let’s talk about ‘Break Fees’

  Break fees are charged by lenders when a fixed term loan is repaid early and the lender can only ‘on lend’ that money to someone else, at a lower rate. This has not been an issue over the last couple of years of course but now, as rates fall and will fall...

Best mortgage rates, 10% deposit owner occupied and 20% rental purchase, self employed with no financials and help for those with bad credit or arrears.

Hundreds of reviews on TradeMe and Google makes us your ‘Number 1’ choice.

Call 0800 536 337