If your property became vacant today, what rent would it realise?
Tenants are better educated today and are aware of the going rate for a certain type of property in a given location. This information is readily available to them simply by navigating the various Internet sites available.
In our experience, properties for which investors increase the rent to above market levels have higher vacancy rates than those for which rents are maintained at or slightly below market levels. Therefore, increasing the rent to above market levels is false economy as it results in a higher turnover of tenants, high vacancy rates and lost income.
By increasing rents to slightly below market rent, your tenant is aware that they are not being ‘rent gouged’ and are therefore more likely to remain in the property. This ensures full occupancy for you and a continuing income stream.
At the end of the day our job is to maximise the income for your investment property. We achieve this by not only increasing rents but also ensuring that you have a steady income stream and lower vacancy rates. Maintaining rents at or slightly below market level achieves both objectives.
If you have any questions, or need clarification on any of the above, please contact Anna Marten, our Head of Property Management, on 9651 1666 or email@example.com.
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