Most landlords have only one investment property in Liverpool, and apart from the family home, it is their single biggest investment. As a result, it makes sense they become obsessed with rental figures and sometimes even decline the advice of their property manager to decrease the advertised rent when no applications are being made.
Unlike those who have only recently entered the investing world, the majority of experienced property investors realise earning $600 a week with zero vacancies earn more total yearly rental income than $650 with several weeks of vacancy throughout the year. Even just one week of vacancy can take up to three weeks to recover!
The team here at Prudential Real Estate know the market and know your property. And sometimes we may suggest accepting a slightly lower rent to take in an excellent tenant and provide you with greater annual cash flow rather than waiting for the possibility of a slightly better rent.
Unfortunately, some investors fail to see the long term benefits associated with lowering an advertised rental price even slightly. And many tenants move on to other rental properties as a result of finding cheaper rent for a better home. When a tenant submits their vacating notice, there is always the risk of a period of time where the home is vacant. By preventing the tenant from moving out in the first place, this can be avoided. Results include higher turnover, less vacancy periods and satisfied tenants more likely to keep your home in pristine condition.
Worse still, over priced homes in Liverpool tend to attract tenants who are less able to manage their finances. This may result in delayed rental payments which could ultimately warrant a termination notice. These all add expenses in the form of vacancies, worries and stress we would all otherwise be happy without!
Over the years we have also seen these circumstances create bigger problems. If a landlord has had several weeks of vacancy, they eventually start to become desperate for a tenant. This could mean they may accept someone they would not normally consider. They may go against their Property Manager’s recommendation and allow a tenant which is not suited for the home. By allowing any tenant access to your home, you are putting your asset at risk for damage, lack of maintenance and a variety of issues which may be much more damaging than one more week of vacancy.
The fact of the matter is most of the problems can be avoided by using a professional Property Manager backed by an experienced team. Let your property manager do all of your homework; after all, this is what they are trained to do! Property managers can send you regular updates on the state of the home, a list of expenses and rental income as well as suggest when it is appropriate for a rental increase. Follow their direction and recommendations and you will soon discover a world of trouble-free investing.
So what are you waiting for? Solve all of your rental nightmares and fears by contacting Prudential Real Estate today on 4628 0033 or visit one of our branches.
