The Successful Leasing Campaign
Leasing a property is the most time consuming, time-sensitive and stressful part of managing a property. So what strategies can you use to make it easier and successful? It’s about being realistic, pro-active instead of reactive and thinking ahead.
At the end of the day, it’s the price that leases the property. Price too high and you’ll attract desperate tenants who may be able to afford it, but don’t have the best rental history. This creates risk for your investment in the form of increased wear and tear, potential damage, overgrown gardens and late rental payments. Price too low and you’ll attract tenants who simply can’t afford the property, or may be able to at first, but once the rent increases to market value they’ll have to vacate or fall into rental arrears.
It’s common for those tenants who have a poor rental history to offer more than the advertised price or target properties that are advertised at a high price. They know that with less competition and a stressed landlord that they’ve got a higher chance of a successful application.
To counteract this, be realistic about the price you are advertising your property for. Look at what else is on the market, check the level of enquiry you’re getting and think about the numbers attending open for inspections. Low enquiry and attendance screams “this property is too expensive for the current market!”.
In practice, you should adjust prices quickly. For example, if your property is advertised at $550 and in the first week of it being advertised you get 2 enquiries and no-one through the open for inspection; you need to act quickly and adjust the price for the second week. Not just by $5 per week, that’s not going to change anyone’s mind, make it $15 or more per week for the best result.
A good strategy to have is a “pricing plan” in which your agent is given permission to adjust the price down each week to a pre-determined figure if the property does not lease. This way you can stay ahead of the market and negate the risk of your advertisement going “stale”.
Presenting the Property
During the campaign the property should be presented immaculately. Gardens should be tidied regularly and the property should be clean and dust free inside. Any pre-existing maintenance items should be attended to before the campaign starts.
A tenant who inspects a property where the lawns are “just a little long”, the property is just “a little dusty” and that kitchen cupboard is hanging off it’s hinges will get the impression that the owner doesn’t care about the property and therefore won’t keep it in good repair during the tenancy. Too many tenants have had previous bad experiences and won’t risk applying on a property that is not cared for.
Open for Inspections and Private Inspections
It’s all well and good to run an open for inspection each Saturday and hope that you get an application from someone who can make those times. But there are plenty of potential tenants out there who may work Saturdays, have kids sport or simply can’t make weekend times.
To counteract this and to get the most potential tenants through your property, private inspections or alternative open for inspections times should be available.
At Savoy Real Estate we offer private inspections to anyone who can’t make the Saturday time and often do two open for inspections per week; a mid-week and a Saturday. We even do private inspections outside of hours for qualified tenants. On top of this, Savoy offers inspections via Skype, Duo and Facetime to ensure every potential tenant can see the property, whether they are moving from interstate, overseas or simply can’t get to the property to view it.
The highest performing advertisements for properties for lease are those where effort is put into the written description which is accompanied by professional photography and a snappy title. Think about it, if you were looking for a property to rent and you had two property ads on your screen, one has a good title, detailed description and a professional photography; while the other has a photo taken of the exterior of the property on the agent’s phone, a short description giving little detail and is simply titled “2 Bedroom House”. Which one are you going to be drawn to and more likely to inspect?
Good options to improve your ad are:
- Professional Photography
- For Lease Board
- Property Video
- Detailed Description
- Online Applications Available
- Featured/Highlight/Premier Listing on Websites
For a successful leasing campaign, the communication ability of your chosen agent is extremely important. As mentioned above, when a property is presented poorly, the tenant thinks the owner doesn’t care or won’t take maintain the property; this can also be true when the agent doesn’t communicate well. If the potential tenant finds it hard to contact the agent or even get an email response, they will assume the same issue will be a reality when they try to contact their agent during the tenancy regarding urgent maintenance or other issues.
Your agent should respond to email enquiries within 24 hours at least, should return enquiry calls same day and generally should be easy to communicate with and contact. At Savoy Real Estate, these are our policies and our priority. All calls, emails, SMS or other forms of communication are returned at the first available opportunity which gives tenants confidence that their agent actually cares!
If your agent doesn’t reply to enquiry, how will they attract potential tenants to inspect, apply and lease your property?
Are you looking for a leasing expert to ensure your campaign is successful and stress-free? Call Savoy Real Estate today on 1300 328 848.
* The above information is general in nature and may not apply to your situation. The above information is in accordance with the current legislation as at the 19th of July, 2018.