TEMPTING TENANTS

What would you be prepared to do to lure tenants?

While this seems a bit of an unlikely scenario in these times of almost ‘as low as they can go’ vacancy rates, there are reports about landlords and developers offering incentives in a bid to secure long term leases.

Reasons offered to explain this behaviour, and ‘perks’ for tenants not witnessed for years through the tight rental markets we’ve ben experiencing, include concerns about the rental reforms, more supply coming into some markets through increased new-build stock and affordability concerns pushing tenants to share houses, move back in with family and other options.

On offer, for example, are one week (or more) rent free, pool maintenance at no cost to tenant, free internet, all yard work thrown in, and even the joining fee or annual membership at a local golf course or sporting club.

Property investors like to keep their best tenants for the long term. To do this, it would be beneficial for you to:

• Tend to any maintenance requests promptly.
• Pre-empt maintenance and be proactive in carrying it.
• Keep an open line of communication with your property manager who will regularly update your tenants on matters that impact them.
• Use a property manager who accessed quality property management software.
• If possible, offer your tenants access to a tenant portal and/or mobile app, which will enable them to stay informed and up to date on their terms, and easily access information such as when rent is due, leasing conditions and maintenance requests.

Built-to-rent appears set to boom here in Australia after having been around for some time overseas. The model has all dwellings in a building complex owned by a single entity, which maybe one investor or a developer, and professionally managed.

To attract long-term tenants, the buildings may come with impressive perks. Consider these: a Tesla car-share program, an app that allows tenants to communicate with each other and attend events, wellness spa, a yoga room, ballet studio, fully equipped gym, sauna, large indoor pool, private cinema, childcare facilities, co-working spaces, multiple large terrace areas and concierge service.

Build-to-rent properties tend to allow tenants to sign up for long leases, make changes to their homes, and make it easier to have pets.

The concept is not meant to replace traditional mum and dad investors, it is simply another good housing choice for Australia.

SOURCE: RE/MAX Australia