There are only three factors that attract tenants to a property, the three P’s: Price, Promotion and Presentation.
We all want to achieve the highest possible rental price in the shortest period for our property.
When a property does not rent quickly the majority of owners will immediately blame the Agent for not renting the property, and many agents, go for the handbook of excuses.
The excuse and blame lists look something like this –
Are you all sitting down? Some may need to reach for a Panadol or Valium, so make sure you have a glass of water handy.
Here it is in plain English:
Even plainer – the property is over priced, badly presented and/or the investment in promotion may have been inadequate; ie badly or ineffectively advertised.
It is very important to make sure that your property is priced in a way that is aligned with what’s going on in the current market place.
All professional agents’ should provide you with a CMA (industry jargon- Competitive Market analysis).
This is a comprehensive list of all the properties currently on the market that you are competing with for the current pool of tenants.
Using this information and just as importantly your agent’s honest and fearless feedback from inspections, we are able to set a price that is competitive with comparable offerings in the market place.
Everyone understands the need to present the interior of a property well. A property that is clean with Fresh paint, clean carpets and the like is always more appealing,
If a potential tenant won’t stop their car because they don’t like the exterior of your home, you will never get them inside.
Try this simple exercise.
Go outside and close your front door. Stand there. Do you want to go inside? Does the house welcome you?
If the answer is no, chances are your potential tenant has already driven off.
In the days of newspaper agents relied on a great or catchy headline to stand out.
The advent of the internet has turned this upside down.
We have an average of 2 seconds to catch your prospects eye!
Photography has never been more important.
If you have bad or amateur photography, the prospect won’t even click on the ad for further information.
The first and most important rule is to give them nothing that allows them to eliminate the property from their lists. This means ABSOLUTELY no bad photos.
It’s better to have no photos rather than a poorly framed one or ugly one.
These small details have a big impact on what price you receive and how quickly your property is rented, and add up to thousands of extra dollars in your pocket every year.
The property must be promoted in a way that prospective buyers are able to see it and are able to find it. In these technology friendly times, the old adage “you can’t rent a secret” has never been more true.
In order to maximise the rental, we need to cast the net as wide as possible to catch as many potential tenants as possible.
Promotion should include:
Many more tenants are becoming tech savvy and relying solely on the internet. If your property is only listed at the bottom of the page 8 on one or two obscure internet sites you are not even in the game!
As a minimum your agent should use:
- realestate.com using highlight property functions to stay at the top of the page.
- Professional agent’s website, university and community websites as well as military and other targeted areas.
Sign board (an oldie but a goodie)
Many agents don’t even bother with this “old school dinosaur” but you may be surprised to learn that In this tech friendly age we still gather about 10% of our enquiries using this low tech and incredibly inexpensive method.
Whenever possible a signboard should be erected as soon as possible and in a prominent location.
Open for viewings
Wherever possible your agent should try to book multiple prospects at the same viewing. This helps to create a culture of competition.
This buzz adds to the perception that this property is priced right and helps avoid lowball “offers” from tenants who may believe they are the only prospect.
Always remember that there are only three factors that attract tenants to a property the three P’s:
Price, Promotion and Presentation
Leave all or any of them to chance and your potential tenants might “drive by” and ignore you indefinitely.