Minimising vacancy – there is a lot to it.
Vacancy is very expensive for owners. We therefore set a very high priority to placing a new tenant swiftly and so work hard to minimise the number of empty days between tenants. ‘Days Vacant’ is one of our key measures and fortuitously, it’s very easy to calculate. Our practices are designed to holistically deliver this goal by using this effective process:
- Firstly, avoid vacancy if possible – give superior service to the tenant (act on repairs, good communication, be respectful, justification of rental increases, solve issues)
- Start quickly – when we are given notice, we start looking for a new tenant without delay
- Ask the correct rent – don’t be overly optimist and find out a week or two later
- Attractive marketing – good photography & full information displayed prominently on all relevant websites (we are on six sites, but the vast majority of enquiry comes from the big two)
- Show the property often and professionally – Open For Inspection and Appointments
- Encourage good tenants to apply
- Evaluate applications swiftly, communicate progress and inform the successful applicant as soon as possible (it’s a major issue for tenants when they make an application and don’t hear back, then often choosing the first agent/property that responds)
We always use Premier advertisements with realestate.com.au and Platinum for Domain as they give us the best opportunity to attract more good tenants to the property and then select the best one. It is more costly, but I’m convinced it’s a better business decision for the owner. An extra few days of vacancy and the possibility of not meeting and placing the best tenants is a significantly more costly alternative.
One more point: a change of tenant is a good opportunity to repair or improve the property. It’s important to plan for this before the tenant gives notice so that work commences as soon as the tenant leaves. Many renovations require Owners Corporation approval, so it’s way too late to think about this when the tenants announces their departure.
Over the past year, our median ‘Days Vacant’ has been 4 days. The market has become more difficult over recent months and the latest figure for this quarter is 6 days. Most of our competitors don’t measure their DV, but I’m convinced that they are usually delivering a significantly higher number of empty days to their landlords.
Feel free to call me on 0400 54 04 23 to discuss any Property Management questions you may have.