03 Jun How to lease your apartment in a tough market
If you own an apartment that is currently vacant and your agent is searching for a tenant, you may find this extremely helpful because you need to know how to get your apartment noticed by prospective tenants when the market is awash with other apartments for lease.
I am going to give you the 12 point marketing check list for you to tick off.
The apartment rental market has fallen by around 5% – 10% due to a sharp increase in supply and reduction in demand. The prospective tenants that are looking are shopping on quality and price and often have time on their side.
Each area has been impacted differently depending on the level of its historic reliance on short term accommodation, student accommodation, holiday makers, or even completion of new projects.
Similarly, some specific apartment buildings are also being directly impacted and have seen a very sudden and large increase in the number of apartments for lease.
To give you and idea here is a map of Melbourne showing the number of apartments for lease. This is showing apartments of any size, furnished and unfurnished, available for long term rentals which is generally 12 months.
As you zoom in to certain locations you can see some buildings have dozens of apartments available. Areas such as Southbank have many large apartment buildings and some of these building have several dozen apartments for lease or in some instances well over 50 apartments for lease. Even if you narrow your search to just 2-bedroom apartments the availability still out strips demand significantly.
The big question therefore is…
“If I own an apartment which is for lease along with dozens of others, how do you get the attention of the precious few prospective tenants and get them to inspect and apply for my apartment?
For decades residential property managers and leasing agents have had little trouble finding tenants. They take some photos, put an adv online, hold open for inspections, and then sift through the applications to find the best one. The problem now is very few of these agents have experienced a market like this.
If your apartment has been vacant for some time do this 3-point check:
- Is something lacking or undesirable about your apartment or its condition?
- Is the asking rent at market rates. (remember they have fallen lately)
- Is absolutely everything being done to promote it in its absolute best light.
Wood Property are working closely with every one of our owners who have a vacant apartment to make sure the property is clean and well presented, lights are on, blinds up, and has regular inspections.
We are having regular conversations with our owners about the market and the asking rent to make sure it is in line with the current market.
We are also pulling out all stops to promote each apartment and push them out in front of any other apartment available for lease. An on-line ad is no longer anywhere near enough.
Here are the 12 things your agent needs to be doing to find a tenant.
- Great professional photos.
- A video walk-through of the apartment
- The highest possible listing grade ad on the top 2 real estate portals being realestate.com and Domain so your apartment is at the top of the list
- Have your adv re-boosted regularly so it stays on top.
- Place the listing on all the other property portals.
- Paid social media ads (not just organic posts) on face book and Instagram linking back to the adv
- Regularly message all potential tenants on the agent’s database.
- Regular private and general inspection times (3 or 4 per week)
- An on-site “For Lease” sign (if the owners corporation will allow it)
- A letterbox drop to surrounding apartments promoting your property for lease
- Follow up enquiries with phone calls and text messages
- Prompt processing of tenant applications to secure the best tenant.
Please check your agent is doing every one of these initiatives to get your apartment leased ASAP and at a reasonable rent.
If you would like to discuss your specific situation, please give us a call and we would be super happy to talk it through and give you our advice.