How can landlords lock in great tenants without breaking the bank? Photo: courtneyk.
In a soft rental market, small upgrades can give you a serious edge.
With more competition and choosier tenants, one expert says landlords who invest wisely are attracting better tenants, locking in longer leases, and boosting their bottom line.
McIntyre Property investment team manager Amanda Gordon says owners need to put in a little extra effort if they want to secure good tenants at good prices.
“A good tenant – the ones that treat your property like it’s theirs and are never late on the rent – know they’re good tenants. They will often get approved for multiple places and can take their pick,” she says. “So why should they pick yours?”
Amanda says first and foremost it boils down to supply and demand, and that feeds into the right price.
Owners must not only consider size and composition of their rental, but condition and context – the price of neighbouring rentals.
“For example, we had two houses available for rent literally around the corner from each other. They were both three-bedroom, one-bathroom, single-parking space homes, but there was a $30 price difference,” she says.
“The more expensive one had a renovated kitchen and bathroom, it was neat and tidy and had been looked after nicely. We had 17 people through to inspect and it was snapped up quickly. The other had not been well maintained, so despite being cheaper, it had three people to inspect and nobody applying.”
Of course, securing a good renter doesn’t always require a new kitchen and bathroom.
But poor maintenance can become a bit of a catch-22 in the hunt for a good tenant.
“You can often tell when a property has been a rental for years. It becomes a bit run down,” Amanda says.
“A well-maintained home not only attracts more interest, but also appeals to the kind of tenants more likely to continue maintaining it well … it kind of goes both ways.”
“Neat and tidy” is the aim.
Amanda says a landlord can make plenty of low-cost, basic updates to improve their chances of securing a good tenant.
For owners taking a property to the rental market, she recommends getting marketing photos taken with the furniture still in.
“There are lots of empty properties for rent. If you empty your property before taking photos then like all the other properties on the market, it’s just four white walls and a window. Furniture gives an indication of size,” she says.
“Definitely de-clutter first and hide bits to present it in the best possible light because those photos set the tone for the market and demographic that comes to inspect.”
If you’re investing in some upgrades, a fresh lick of paint and fresh floors are the obvious choice. But it’s also worth noting tenants prioritise cost-efficient heating and cooling in the current market, with solar panels a major drawcard.
Amanda also recommends a low-maintenance garden.
“You don’t want to limit yourself to good tenants who also have the time for a high-maintenance garden,” she says.
“And don’t plant big trees – they might seem like a good idea at the time, but you cannot remove them.”
Finally, check all the small but highly functional items in the home are in good working order.
“Fly screens with holes, windows and sliding doors that hitch on their runners and loose door handles are all red flags for tenants – and they’re fairly inexpensive to address,” Amanda says.
“And it’s a good idea, whenever you call in a plumber, to have them check all taps at the same time. It’ll save you multiple callout fees for taps that start dripping at different times.”
