Minimising rental downtime
Rental turnover is part of every investment property owner’s journey. After all, it’s only natural that at some point even the most content long-term renter will move on.
The art of handling this turnover is to minimise the down time, streamlining the process so your property doesn’t sit vacant losing money and appeal.
But how exactly is that done? Here’s our guide to handling rental turnover and the top tips for minimising your investment property’s downtime.
An empty property is lost income
No investment owner wants their property sitting vacant. After all it’s lost time and lost money and it can have a major impact on your bottom line.
The big question is what can you do to minimise that vacancy? What can you put in place to ensure your property quickly attracts new occupants once the previous renters leave?
Well, in our experience it comes down to proactive property management that includes having the right conversations at the right time as well as implementing effective systems.
These systems are in place to handle every box that needs to be ticked between being given notice a renter is leaving and having a new occupant move in.
So let’s delve a little deeper…
Proactive preparation
It’s rare that renters suddenly up and leave. In fact, fixed term leases are designed to mitigate this risk. More importantly, they allow the property owner and manager to gauge the renter’s intentions long before a rental agreement ends.
Ideally, the property manager will reach out to the renter to find out about their future plans at least eight weeks prior to the end of the rental agreement, asking whether the renter wishes to renew the agreement or vacate.
If the intention is to vacate, it’s time for the property manager to get to work using systems and procedures that ensure a stress-free exit and re-let, factoring in things like advertising the property, inspections, and any required maintenance.
Marketing and advertising
The search for a new renter begins long before the current renter vacates the property. Once the property manager is made aware the current occupant will be leaving, they should contact the owner about the following:
- Property marketing (where, when and the cost involved)
- Rental price based on current market conditions
- Any new agreement terms
As part of the advertising campaign, you might need new professional photography, and an updated description.
It’s also a good idea to include floor plans and even video walkthroughs as part of the property marketing as it gives people a good idea of the property’s size and layout before they even attend an inspection.
Ideally, advertising the property should commence about a month prior to the current renter leaving, with inspections held in the lead up to the vacate date.
The exit
A successful exit starts with proactive communication where the property manager lays out what needs to happen in terms of last rental payments, cleaning, returning the keys, removing rubbish and any suggested professional services that might assist, such as pest controllers and carpet cleaners.
It’s also important for the renter to be proactive about scheduling their removal, leaving enough time to properly clean the property and also organising any repairs that might be needed.
And here, the entry condition report is an essential reference. It basically sets the standard that the property needs to be returned to, barring any fair wear and tear.
Any required maintenance
There is usually a small gap of at least a week between renters which allows for any additional cleaning and maintenance.
Use this time wisely, If you are considering improvements or repairs, this is the time to get in and have them done.
Prioritise essential fixes, but it’s also a good time for a property refresh including a new coat of paint, new blinds and a garden tidy.
Screening and securing new tenants
While all this is going on your property manager should be screening and securing new renters.
This process involves taking applications, then checking references, and employment and rental history.
While speed is of the essence here, it’s also important to get the right renter for your investment, and that may require a little flexibility when it comes to moving dates.
The ultimate goal is to have a quick yet careful turnover which will avoid repeat vacancies in the future.
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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