Avoiding Vacant Rental Properties
Your agent should make every reasonable endeavour to find good tenants and should keep you updated on a regular basis.
Overall, there is solid supply and demand for rental property in South Australia. The rental vacancy rate currently sits at between 3-3.5% in most areas. During the late 2000's, vacancy rates dropped to below 2%, but as the economy has slowed, the rental market has returned to more sustainable levels.
Generally, properties which are well presented, well located and priced for the market will rent within a 4-6 week period. If you haven't secured a tenant in this time frame, it is important to review the situation. REISA always recommends that you use the services of a professional property manager who is a REISA member.
First of all, is the rent too high? High rents can lead to long-term vacancies which ultimately affect your income. The current market and the tenants determine the rent, along with the size, number of bedrooms and other features of the property. Your agent should be monitoring the market to ensure that your asking price is reasonable, while still giving you the maximum return on your investment.
What sort of condition is the property in? It is important to maintain the property in reasonable condition in order to attract good tenants. A quality tenant will often have a choice between a number of properties, so it is important that your property is aesthetically pleasing and constantly maintained.
How good is the location? When purchasing an investment property, location should be high on your priority list. Even if the property is in excellent condition and the rent is at market value, it could be staying empty because of its location. Tenants often look for properties that are close to shops, public transport, schools, etc.
Your agent should make every reasonable endeavour to find good tenants and should keep you updated on a regular basis, but keeping these factors in mind will help you maximise the return on your investment.
