Generally, it’s better to have a longer lease, to help keep your investment returns ticking over.
As always, working with your property manager to secure a quality tenant longer-term is a sensible move. Often, we think of 12 months as the norm for a residential tenancy. As more Australians are leasing for extended periods, leases of 18-24 months are becoming more common. The appeal of these longer leases is consistent cash flow and reduced costs because it costs you money finding a new tenant.
You can also use longer leases to help ensure that if a tenant leaves, the property falls vacant in more favourable market conditions in your patch. For example, beachside suburbs rent faster in the warmer months. For suburbs near a university, late January and February are the busier periods.
If you have a vacant property or are approaching the end of a lease, it might be worth adjusting your weekly rent to help keep the current tenant or to attract a new renter to fill the vacancy. A rental adjustment is a discussion you should have with your property manager. Usually adjusting the rent for a current tenant is better outcome than losing them and have a vacant property for a period.
If you have a vacant property and want to promote it widely, then also talk to your Raine & Horne property manager about our exclusive digital marketing platform, Amplify, which knows what tenants are looking for before they do.
Amplify is our unique social and search marketing tool that puts your vacant rental property in front of more active and passive renters than other property management firms can reach. Passive renters are people who might not be actively looking for a property similar to yours now – but perhaps it’s in the bucket list for the future.
If your current property manager is only using traditional methods such as industry portals to find you a tenant, then talk to us.
To find out more about Amplify and how it can support your investment cashflow needs, contact your Raine & Horne Property Manager today.