5 tips for landlords in a tenant’s market

Rental property in tenant market

Rental rates in Australia are falling at the fastest pace ever recorded. According to the latest Rent Review Snapshot, the average rental rate in Australia’s capital cities has fallen by 0.3% in just 12 months. This may be great news for renters, however landlords are now feeling the pressure to meet market values, and it is to their detriment. Despite the current state of the market being in the tenant’s favour, there are a few tricks that landlords can use to maximise cash flow and minimise the risk of vacancy.

1. Maintain a positive relationship with your tenants

Keeping your tenants happy will encourage them to stay in your property at a price that you prefer. A few ways to keep your tenants happy include offering incentives like allowing pets in the property, listening to their concerns and acting if necessary, performing regular maintenance on the property and ensuring you offer regular and open communication.

2. Know the rental prices in the area

Owning a rental property requires you to maintain knowledge of the current market and means you need to be flexible when there are shifts in the market. Keeping up-to-date with rental prices in your area will help you identify any market changes and will ensure that you are able to regulate before your tenants leave for a better option.

3. Improve the appearance of your property

Making small improvements to the appearance of your property will make your tenants happy while at the same time boosting the demand for your property. Small improvements may also delay the need to make a rent reduction.

4. Review and improve your marketing strategy

Your marketing strategy can mean the difference between maintaining a high rental rate and ending up with a vacant property. The best marketing results can be achieved through an omnichannel approach, for example through the combination of social media marketing, email marketing and offline methods such as pamphlets and flyers.

5. Don’t be averse to making a rent reduction

The one thing that is worse for a landlord than making the decision to reduce your property’s rental rate is experiencing tenant vacancy. In a tenant market, you’re competing against shrinking rental prices so it’s important to remain competitive in order to reduce the risk of tenant vacancy. Reducing your rent is also a sure-fire way to keep your tenants happy.

To discuss your rental options, or if you would like more information on the current market, talk to CPS Property today.