This question is one that crops up with our landlords often when their property becomes vacant and as your agent, we have some strong opinions on this issue.

It is our job to ensure that your property is receiving the best possible price that we can achieve for rent.  The thing is, rental prices are determined by variables that are subject to change with market conditions.  The property management market is much more susceptible to change over a shorter period than what is generally applicable to the sale market.  Things that we see affect the property management market include (but are not limited to) changes in weather (really cold or rainy days especially), School holidays, public holidays, seasonal changes, Christmas and Easter.  Realistically, we often see a drop in enquiries at times where funds might be needed for other priorities – like at the start of the school year or perhaps in the lead up to Christmas.

The most important time for your property is when it first hits the rental market and being able to have a little bit of lead in time is always valuable.  When a tenant gives notice that they are vacating there are requirements about how much notice they need to provide their landlord and this gives us time to get the property advertised, prior to it being available to view.  It is during this valuable period that we will be able to get an idea of the interest that is being generated in your property.  Tenants who are looking to move to a new home often set up alerts online that let them know when a new property is available.   Our office is sent emails and enquiries from people who are interested in looking through the home with a view to put in an application.

If we get through this period and you have not had any good applications for the property from prospective tenants, this is when you need to be proactive and ensure that you adjust your rental price, so that you are attracting continuous enquiry.  If the photographs and wording on your property advertising are of a high quality, then the only issue is going to be the price.
A lot of landlords hold the mistaken view that by holding out for a higher price,  they will get a better quality tenant, something that as a real estate agent I can tell you is completely untrue.  If there are a lot of vacant properties on the market, or the property is overpriced compared to other similar properties, then tenants are going to apply for other homes.  Tenants are well informed about what homes are vacant and the prices that are being asked for rent.

If your property is overpriced by as little as $10 per week, it can affect the ability of you to attract an application.

The average rent price for Lithgow currently is $280 per week.

Over a 6 month period, $10 per week equals $260.

If you do not reduce your price to meet the market, you risk losing a week of rent for every week that your property remains vacant, with a hoped for gain of just $260 over an entire 6 months.

If your property is not renting currently, or you have questions about this type of situation, you are more than welcome to contact me at the office on 02 6352 5125 or via email at tina.case@professionals.com.au