There are varying factors that may reflect the time that a rental property is on the market for such as how it is priced compared to comparable properties, how the property is presented and the demand for properties such as yours from the market.
Your property manager should compare similar properties to yours in the current market for rent and previously rented so you can discuss with them the best approach to pricing your property in order to secure a suitable tenant in a time suitable to your needs.
Things to consider:
The presentation, price and demand for properties similar to your all play a determining factor along with the pro-activeness of your property manager in how long it takes to secure a suitable tenancy application for your property.
A fixed term agreement has a definitive start and end date while a periodic tenancy is known typically as a ‘month-to-month’ arrangement and does not have an end date. A fixed term agreement and a periodic agreement both hold their own pros and cons which you would need to consider as they may affect you as the landlord.
- Provides security and peace of mind knowing you have a fixed income for the period of the Agreement.
- Enables you to forecast and budget accordingly for any expenses or refurbishment required.
- The Term of the Agreement can end at a time where the market is at its premium, therefore giving you greater control.
- To end a Fixed Term Agreement, a Notice to Leave of 2 Months is required to be provided to the Tenant. A Tenant cannot leave prior to the end of the Fixed Term but does need to give 14 days’ Notice if they are ending the Agreement.
- The Tenant is in control and can dictate when they wish to end the Tenancy by giving the required notice to leave of 2 weeks’ notice.
- The Tenant is not committed to a period of tenancy other than the period required for the notice.
- The option of increasing the rent is often missed as the Tenancy continues unless the Agency is particular about following through with monitoring all Periodic Agreements.
- Tenant may terminate the Tenancy at a ‘slow’ time therefore the Property will be vacant longer. This equates to loss of income to the Lessor and to the Agent as commission income.
- The Lessor/Agent has to provide 2 Months’ Notice to Leave without grounds if vacant possession is required.
Things to consider:
Before deciding which term is best for you, consider your objectives for your investment property. While a periodic agreement may provide you with more flexibility should you be thinking of selling or developing the property, a fixed term agreement will provide you with more piece of mind, security and control of your investment.
Discuss your investment plan with your property manager to help reach your short or long term goal.
The time of the year that a property is advertised for rent can make a considerable difference to the demand on your property which can impact the rent achieved and, therefore, on the Return On Investment (ROI).
January – February
This is the busiest season in the rental market and the time of year that people are most on the move. Whether it be people being transferred for work, settling kids into a new school, starting the university year or simply renters who want to change of location or lifestyle.
June – August
This is another optimal time of year to maximise the demand for your rental property. June to August prooves to be the second busiest time of the year in the Brisbane rental market with six month tenancies expiring and new university intakes are occurring.
Things to consider:
It is not a legal requirement in Queensland to offer either a six or twelve month lease period. As an investor you may wish to consider offering tenancies so that the tenancy ends in the peak periods. Some tenants may find it odd that there are not being offered the common six or twelve month lease period, so it is important that your property manager clearly communicates the benefits that the tenant could incur in ending the lease in peak rental season.
While it is not impossible to locate a suitable tenant at any time of the year, these two peak periods provide investors with more selection of suitable and quality applicants, more demand for their properties and more potential for optimal market rent to be achieved.
To determine how much rent you can achieve for your property, you will need to assess the current rental market by comparing similar properties in the area and what they are renting for.
A good place to start is to carry out some research online. It is important to pay attention to the requested prices, the condition of the properties you are comparing your investment property to and how long the properties stay on the market at those rates. Our property managers at Orbit Property can provide you with a Rental Market Opinion and helpful hints to get your property rented.