THERE are more than 10,000 homes and units for sale across Perth and it took an average of 72 days to sell a property in the three months to August, according to REIWA.
Similarly, almost 10,000 properties are available for rent, with an average of 54 days needed to fill a vacancy in the same period.
“At the moment, landlords, like sellers, face a lot of competition for their property,” Pure Leasing director Cameron Ewers said.
“They too need to take similar steps to ensure a fast and optimum result.”
When selling, good presentation is essential and Mr Ewers said this also applied to a landlord seeking a new tenant.
“The key to a successful leasing campaign is for the presentation to be 100 per cent,” he said.
“Whether the property is new to the rental market or has been rented for a number of years, it needs to present as a home, not a rental.
“Good maintenance is an essential part of this. Many property managers either don’t detect or don’t report minor maintenance issues throughout the rental lifecycle to owners, and as a result the property requires more significant works to be done between tenancies, which can often increase turn-around times between tenancies, which ultimately results in the property being vacant for unnecessarily long periods, which is very expensive for landlords.”
Mr Ewers said that while the rental market had softened over the past 18 months or so, tenants’ expectations had not reduced with the decrease in rent prices.
“If anything, they’ve increased with the more competitive market,” he said.
“So it is absolutely essential for investors to understand that scaling back on essential maintenance and not reinvesting back into their investment property in lieu of the softened rental market is actually a very expensive mistake as it is more important than ever to ensure your property is the best it can be to minimise the impact of the changing market on your returns.”
Mr Ewers said choosing a proactive agent to manage an investment property was just as important as choosing an agent to sell it.
“Sales agents need to act quickly on buyer enquiry and when it comes to filling vacancies, managing agents also need to respond promptly to tenant enquiries,” he said.
“Prospective tenants that enquire on a property want to see it quickly and we have always had a strong emphasis on converting enquiries to inspections as quickly as possible.
“If the agent isn’t efficient or accommodating with co-ordinating a viewing quickly then they miss the opportunity, and so does the landlord.”
Like sellers, Mr Ewers said landlords also needed to have realistic price expectations.
“The goal of the managing agent is to ‘optimise the return’, which doesn’t necessarily mean focusing on maximising the weekly rent,” he said.
“Having a good, long-term tenant move in next week is far better than waiting six weeks to achieve a slightly higher amount.
“So recognising a good opportunity for an investor is often a lot more profitable than being fixated on achieving a certain rental amount.” n