What high renter turnover tells you
When you own an investment property, having quality renters who stay for the long-term is always the preferred outcome.
But what if your property struggles to attract and keep good renters? What if every time the end of a rental agreement nears, the residents opt to vacate and you are left looking for new renters all over again?
If that’s the case with your investment property, then that high renter turnover is telling you something.
Here are eight reasons for high renter turnover and how you can tackle the problem…
Maintenance issues
Persistent problems and maintenance issues with a property are some of the key reasons for high renter turnover.
That’s why it’s important to maintain a property well and respond to any repair or maintenance requests in a timely manner.
Poor property management
If the renter feels like their maintenance requests are falling on deaf ears or there’s a lack of proactive property management and communication, that can be a key catalyst for high rental turnover.
That makes selecting a qualified, professional, experienced and highly-regarded property management agency an absolute must.
Rental price
Sure, rental prices have edged higher in recent years and are likely to remain high in many areas due to Australia’s housing crisis.
But renters also need to feel they are getting good value for the rent in comparison to the market. They will also quickly tire of large rent increases.
If you’re looking to retain renters, carefully consider the fairness, timing, and justification for any rent price increase
Outdated fixtures and feel
Like anyone, renters want to live in an appealing, functional and aesthetically pleasing environment.
That’s why it’s important to update a rental property every now and then, adding modern touches such as a fresh coat of paint, new fixtures and fittings, and updated appliances such as dishwashers.
The neighbourhood
Sometimes things beyond your control impact the rental turnover at a property.
And that can include the feel and general liveability of the neighbourhood where your investment property is located.
While there’s little you can do about this after the fact, it makes choosing the location of your investment property a priority at the outset.
Lack of local amenities
People don’t just live in houses, they reside in communities and require access to amenities including shops, transport, schools, and medical facilities.
If there’s a lack of access to these or other essential services that can impact how long people will stay at a property.
Employment and study
General economic conditions and trends can also have an impact on the rental market.
For example, if the property is located near a university, you might expect to see high demand for rental properties at the start of each year, with renter tenure tending to coincide with the university calendar.
Meanwhile, if the region is dependent on one major job market, such as mining or tourism, you could see rental turnover increase in line with a downturn of these local industries.
The cost of high turnover
Regular renter turnover costs you both directly and indirectly, resulting in an investment property that doesn’t live up to its true potential earning ability.
Direct costs include:
Vacancy – Every day a property sits vacant it costs the owner money.
Re-advertising – To re-rent the property, it will need to be advertised.
Maintenance – The property will need to be maintained and cleaned in the absence of renters.
Administration – There are costs and time involved with finding a new renter, including open homes, renter screening, and rental agreement handling.
Meanwhile, indirect costs include a lack of community stability, a perception there’s something wrong with the property, and lost time and energy which could instead be devoted to proactive property maintenance and management.
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.
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