Choosing the right property manager to take care of your apartment is key to getting the right outcome. When you need wise experience in making decisions like matching the right tenant for the right property, you want the right person for the job.
This article covers over why apartment property managers are the right choice when leasing your apartment.
Your property manager needs to understand the market they work in.
Vacancy rates around Melbourne vary depending on the stock levels, rental prices and demand from tenants needing to lease.
For instance, supply of apartments for lease in Melbourne over the last five years has been higher than ever, tenants are spoilt for choice. An inexperienced property manager could cost their land lord thousands of dollars by giving them incorrect advice on how to lease their property, causing the property to be vacant for long periods of time.
Currently in 2019 in the suburb of Melbourne, there are hundreds of apartments for lease with many coming onto the market each day.
Just a few kilometres out of Melbourne in the suburb of Malvern, the rental market has barely any supply of houses yet many tenants desiring to lease. In these areas the cost of rent is increasing.
A wise property manager understands how to approach their local market, this means:
- The presentation of the property (furnished or unfurnished).
- The right advertising campaigns.
- Setting the correct rate of rent to attract tenant inspections and applications.
The right tenant for the right property.
Attracting long-term tenants is a balance of matching a tenant that can easily service the monthly rent and the right type of property for their stage in life.
Different sub-markets have different groups of people living in it. For instance, the CBD attracts young professionals, retirees or couples with no children vs inner city suburbs attracting young families that work in the city or locally.
So, matching the right applicant to your property increases your chances of having a tenant that continues to renewing their lease.
Furnished or Not Furnished?
It’s typical for apartments to come fully furnished. On top of having tax benefits, fully furnished apartments can reduce your vacancy rate or vacant time on market, attract a better-quality tenant and achieve an above market rental yield.
A property manager with experience in leasing apartments with furniture can protect your investment in furniture by:
- including all the items in the condition report.
- advise the furniture suitable to tenants.
- know when something should be replaced to avoid action from Consumer Affairs.
Property managers that work in the suburbs would rarely come across a property that is leased with furniture, their learning curb on how to handle this could come at the cost of their landlords.
The right advertising campaigns.
How much money should you spend on advertising your property? A poor advertising campaign can increase your rental vacancy rates and reduce your chances of finding the right tenant.
A local property manager that understands your competition and who your clients are (tenants) will give you the best advice on how much to spend without over spending.
Should you increase rent when renewing a lease?
Rental increase is something every landlord likes but can be a trap that needs good guidance of a wise property manager. Before handing your tenant a rental increase, your property manager needs to give you feedback on:
- The market value of rent for an apartment like yours. This can vary in different pockets of the CBD.
- An estimated cost of having a vacant property if your tenant doesn’t accept a rental increase. Your property manager must understand the vacancy rates for your area and your apartment
- How has the property been kept? Has rent been paid on time? Does the tenant make many unreasonable requests?
Once a landlord understands the above, a great question to ask the property manager is how they handle a lease renewal with a rental increase. Is it a conversation where negotiation and persuasion are possible or is it done via an email?
Choosing a specialist to represent your needs will insure the right outcome for you and most importantly your property. Your largest investment should be managed by people who have knowledge and experience in leasing out city apartments.