Top reasons for high rental turnover
So the rental agreement at your investment property is up for renewal and the occupiers opt to give notice…again.
High rental turnover is a frustrating scenario that negatively impacts the return on your investment, while also costing you time and energy.
This regular turnover can also impact the reputation of the property, with it becoming perceived as a house with ‘something wrong with it’. It begs the question, what’s causing your rental occupiers to leave as soon as the opportunity arises?
Here are the top reasons for high rental turnover…
Frequent rent increases
Frequent rent increases are often behind high rental turnover, especially if those increases are significant, out of line with market conditions or seem overly high compared to what the property offers.
When considering a rent increase, it’s important to examine the market and weigh up whether the rise in question is worth the risk of your renters leaving and the property sitting vacant.
Lack of maintenance
Whether it’s fixing that leaking tap, or tending to that broken fence panel, proactive handling of maintenance and repair requests plays a huge role in renter satisfaction.
While not all maintenance requests can be dealt with immediately, it’s important they are handled in a timely manner and communication between the renter, property manager, and owner is key.
Bad management
On that note, regular turnover of renters can also be an indicator that your property management isn’t up to par.
A good property manager will:
- Manage maintenance requests in a timely manner
- Proactively communicate with the renter and property owner
- Uphold the law and balance the legal obligations and rights of both the owner and renter
- Respect the renter’s right to quiet enjoyment of the property
- Liaise with tradespeople regarding the timing of maintenance
- And more
They will also work with the renters, building a solid professional relationship based on trust, respect, and open communication.
Too many intrusions
A renter should be able to feel like the property they pay for is theirs to enjoy in peace and privacy.
If there are too many intrusions, then this can lead to high turnover.
In other words, how often do tradespeople, the owner or other representatives attend the property for maintenance, inspections, valuations, or other reasons?
Outdated interior
It doesn’t have to be high-end or state of the art, but a neat modern interior is more likely to attract quality renters who will reside at the property for longer.
If you’re experiencing high turnover, look to your property’s interior and consider whether it’s in need of an update or refresh.
The reality is, every rental property requires a little TLC from time to time, including a repaint and update of the fixtures and fittings.
Lack of inclusions
Sometimes it’s the little things that make renters more likely to remain at your property.
Perhaps it’s the addition of a dishwasher, shaded areas, a nice garden, an entertaining area, or heating and cooling.
Consider what you would like to have if you were to live at the property. It might be a worthwhile investment that would help attract and retain great renters.
Local job market
Although it’s beyond your, the local job market can have a major influence on how often your rental property turns over.
And this is something worth considering when you’re seeking out an investment property as areas with seasonal work or industries that are impacted by economic forces (such as mining) can be more prone to highs and lows in terms of rental demand.
Bad neighbours
This one is also hard to control, but neighbours and the neighbourhood can have a definite impact on how long people are likely to stay at a property.
If neighbours or the neighbourhood seem to be the culprit, consider what you can do to make your rental property more private – whether it’s fencing, screening, or sound proofing via insulation.
How we can help
Our experienced property managers pride themselves on establishing great relationships with both rental occupiers and owners.
We manage every property as if it were our own and you can learn more about our property management services here.
Alternatively, if you are looking to rent a property, you can view the properties we currently have available here.
