How to attract tenants in a slow market

Attracting tenants to rental properties, especially in major city centres, has become more challenging in recent months due to a lack of international students, an increase in migration to regional centres and the number of people moving home with their parents after losing their jobs.

In this COVID-stricken world, competition for tenants is tight. If you are struggling to find tenants, you need to be proactive.

Here are some strategies to avoid having an empty property that is costing you too much money to hold onto.

Drop your prices

Charging less rent isn’t appealing but it is one of the fastest, easiest and most efficient ways to attract people to lease your property. There are always tenants out there and you do need to meet the expectations of the market. Prices have dropped in many suburbs lately but having at least some money coming in is better than nothing.

Consider a shorter initial lease if you can. This gives you the flexibility to raise rental prices down the track.

Offer perks

Incentives can help to entice tenants as well. Offering two or three weeks rent-free at the start of the lease may make the difference to attract more applicants to choose from. Having to pay the initial bond as well as rent is a big financial ‘hit’ so being saved from that is very helpful.

It isn’t nice to be out of pocket but a tenanted property is better than an untenanted one.

A short rent-free period may also help you to keep a higher rent.

Upgrade your property

Tenants can afford to be pickier at the moment.

Never underestimate what a fresh coat of paint and a few new fixtures can do to your property to give it the wow factor and make people want to move in as soon as possible. A small investment can quickly pay off.

You may also want to consider how to make the layout of the home more attractive. For example, a listing with anything that can be used as office space will be more sought after in today’s world.

Market professionally

Scroll through any property listings site and the properties with the best presentation stand out.

It is worth spending the money on a professional photographer and working with a property manager who will know how to make your property look its best so more people show up for inspections.

Chase the right demographic

Unless you feel you could sell a cage to a lion, don’t try to sell a family home to a single person. In short, know your demographics and cater to them.

Look for ways to help your property to appeal to the local demographic. Have a large house in an area of upwardly mobile singles? Add a kitchenette and an ensuite to a larger house and you could have two rentals. Have a smaller apartment to rent in a family area? Play up the proximity to schools and playgrounds or the gym and pool facilities.

Think about who is looking for rentals in your area and do your best to cater to them.

Work with your property manager

No one has a better knowledge of the local market and what people are looking for in a rental property than your property manager. Make sure to work closely with yours and listen to their advice.

They will know if you are pricing your property too high and if potential tenants in the area are looking for specific features. Their advice can be invaluable to ensure you hold onto your asset, even when times are tough.