Best Tips to Minimise Vacancies in Your Investment Property

Conducting thorough research is important to minimize vacancies in your investment property. There’s nothing worse than owning a rental property that sits empty while you continue spending money on expenses. In fact, the longer your property remains vacant, the more it affects your cash flow and overall returns.

Fortunately, there are several steps you can take both before and after purchasing an investment property to minimize vacancies in your property.

1. Purchase in a Prime Location

The first thing on the list is the location. Make sure that the location you will choose is near essential amenities such as public transport, shopping centers, schools, and dining options. The more accessible and convenient your property is, the easier it will be to attract and secure tenants.

2. Hire a Reliable Property Manager

Managing the property yourself is indeed an option. However, hiring a reputable Property Manager can make a huge difference since they are experts in handling advertising, tenant screening, rent collection, property inspections, and other essential tasks. So, choosing a well-organized and responsive Property Manager is your best option if you want to ensure a smooth rental process.

3. Invest in High-Demand Rental Areas

Purchasing an investment property in a suburb with high rental demand increases your chances of securing tenants quickly because they will only have limited options to choose from.

4. Look for a Property that Matches the Demographic

Understanding the demographic trends in your chosen suburb is crucial. If the suburb is popular among singles and couples, then it would make sense to invest in a one- or two-bedroom unit. Meanwhile, suburbs with a higher number of families typically require larger homes with three or more bedrooms.

5. Set Competitive Rental Rates

Make sure that you set a reasonable rental rate for your investment property, as overpricing can push potential tenants away, especially if similar properties in the area are more affordable. To get an idea, you may do research on comparable rental prices so you can set a fair market rate. However, if your property is brand new or offers premium features like water views, you may be able to justify higher rent.

6. Be Proactive

If you decide to manage the property yourself, then you should work twice as much, as you won’t have a Property Manager to help you. In this case, you have to be proactive and seek tenants rather than waiting for them to come to you. You may ask your friends, family, and colleagues if they know anyone looking for a rental property. Additionally, advertise across multiple platforms, including local cafes, gyms, and online listings.

7. Offer Incentives in Competitive Markets

If your property isn’t attracting tenants due to high competition, consider offering discounts or short-term incentives. For instance, you can offer a slight rent reduction or a promotional offer for the first week to encourage tenants to sign a lease. While this may slightly affect your earnings, remember that this is still better than having the property sit vacant for weeks.

8. Choose Apartments with Premium Amenities

If investing in an apartment, opting for a complex with resident-only amenities can boost tenant interest. Amenities like a rooftop BBQ area, swimming pool, sauna, gym, or outdoor cinema add value and attract tenants who prioritize convenience and lifestyle.

9. Maintain a Comfortable and Livable Space

Ensure your property is well-maintained, especially if it’s not brand new. If potential tenants found Issues like dampness, mold, or outdated interiors, it can deter them or your current tenants to leave at the end of their contract.

10. Consider a Rental Guarantee

Some developers offer rental guarantees for off-the-plan purchases. So, if this is what you have, make sure that you receive a fixed rental income even if your property remains vacant. These guarantees typically last for a set period, such as six months, and are outlined in the contract.

Essentially, if you want to learn more about minimizing vacancies in your property, get in touch with a property manager; they can assist with screening applicants to secure reliable and high-quality tenants.