One of the biggest fears of property investors is that they won’t have a tenant in their property from day one. After all, the rent doesn’t get paid until you have a tenant.
Now, if that sounds like you and you’re in the process of purchasing property, then you’re probably wondering if there is anything you can do to improve your chances of getting a tenant in there straight away. Luckily, there are several things you can do, but it often means getting strategic before the property settles.
Here are three key strategies to help you ensure you have a tenant in place as soon as possible:
Negotiate early access
The first strategy I like to employ is to make sure we’re negotiating early access. That means that two weeks before settlement, we have negotiated for our property manager to enter the property, advertise it, and show as many prospective tenants through as possible. This gives you time to hopefully find a good tenant and secure them before settlement, setting you up for a tenancy to begin from day one of possession.
Negotiate settlement for off-peak times
You should also make sure that you negotiate for settlement to occur off-peak. That means avoiding those Christmas or holiday periods when prospective tenants simple aren’t around. By extending settlement through to the middle of January, for instance, a better pool of tenants will be available and looking for their new home.
Price the rent at fair market value
The final strategy is based on pricing your property at fair market value. If your highest priority is to secure a tenant as soon as possible, then shooting for the stars with a high rental price could be a mistake. A property hitting the market at a high rental price won’t be high on the list of options for tenants, but one priced fairly will be. What is important to note though, is that once I’ve got a tenant in place, I revise the rent according to the market every year to ensure I’m keeping up with current prices – and you should do this too.
Follow these key strategies, and you’ll put yourself in the best position possible for securing a tenant in your investment property from day one.
WRITTEN BY JOSH MASTERS
Having been in the building and real estate industry for over 30 years, I’ve seen dozens of times how great tenants can make all the difference to the long term value of a rental property. Contact my office today to find out how I can help you get more from your investment property.