Residential property management - Managing Vacancies between Tenancies
To protect your cash-flow you need to ensure your property is not vacant for weeks on end between tenancies.
Understanding how to prevent this happening will save you money, and reduce your stress. On a property renting for $520p.w every week of vacancy is equivalent to a loss over a year of $10 per week.
We often hear of properties that have been vacant between tenancies for several weeks and this is almost always preventable.
You need to ensure tenants allow access to show through new tenants before they move out. Sometimes this can be a problem if the landlord has developed a personal relationship with the tenant, and doesn’t want to upset them. With good property management the relationship is professional and this is much less likely to be an issue.
You need to make sure the tenancy finishes at the time of year when it is easiest to re-let. If a tenancy finishes in winter, or just before Christmas it is likely to take longer to find a replacement tenant. At worst you may be left with a vacant property over the Christmas/New Year holiday period.
This can happen if a tenancy is signed for the wrong term, or accidentally changes into a periodic tenancy.
Good property managers can eliminate this risk with good documentation and processes.
You need to advertise and show the property on demand. If you are too busy or on holiday this can easily lead to an unnecessary vacancy.
A good property manager can be contacted 365 days per year and will advertise and respond promptly for prospective tenants.
You must ensure the property is advertised at the right level of rent. Self managing landlords can lack experience and might advertise too high for weeks on end while their property remains vacant. With good professional management, there is regular feedback on progress and lots of comparison properties, so this just doesn’t happen.
3 weeks extra vacancy would equal the investment cost of a good property manager for a year, as well as massively reducing overall stress and risk.
That’s all for now, and I look forward to seeing you again soon.