For the first time in years, we have begun to see rising interest rates in Australia and the incoming threat of global recession. The RBA warns that interest rates will also see-saw in the coming years. So what does this mean to you as an owner of an investment property?
For property investors with a mortgage, increasing interest rates may impact your cash flow. We help our rental providers at Dynamic Residential by implementing a proactive rental strategy.
We provide real-time valuations, rent reviews and higher availability of property inspections, so you can ensure we’ve achieved:
- the best price the current market is willing to pay
- steady rent payments, and
- minimised vacancy periods.
Let’s look at how Dynamic Residential can help you, the property owner, during interest rate uncertainty.
At Dynamic Residential, we pride ourselves on our elevated rental outcomes compared to the reactive approach often seen in the property management space. As a property investor, one of your key goals should be setting the highest price the renter market is willing to pay while having little to no vacancy period.
We aim to minimise gaps in rental income by activating our custom 28-Day Rental Strategy once a renter gives their notice. Why 28 days? Because your current renter needs to provide a 28 Day Notice to Vacate and move-out day.
Here’s how we do it:
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Planning 28 Days Ahead
When can we start?
Now that your renter has given their 28 days Notice To Vacate, we understand the Victorian Rental Legislation allows the next renters to be shown through at least 21 days beforehand. So that’s what we will be doing. However, we often get permission from our renters to start even sooner!
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Planning 28 Days Ahead
When can we start?
Now that your renter has given their 28 days Notice To Vacate, we understand the Victorian Rental Legislation allows the next renters to be shown through at least 21 days beforehand. So that’s what we will be doing. However, we often get permission from our renters to start even sooner!
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Market Appraisal
We conduct a market appraisal by researching comparable properties in your area and surrounding areas. We also look at recent data on how similar campaigns have performed, including the vacancy rate.
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Testing the Market
Due to starting our campaign earlier, more importantly, SHOWING potential tenants through our clients’ properties sooner, you should have more confidence in starting at a higher rental amount to test the market. If needed, structured adjustments are scheduled to ensure we have a suitable number of potential renters booked for the next week.
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Online Advertising
If you’re motivated to achieve the best result for your investment property, having your property stand out ensures you have more potential renters viewing your advertisement. More views on your advertisement increase the chance of more renters wanting to see your property. It is that simple!
We engage a professional photographer to better showcase your property rather than photos from a mobile phone, which some agents find acceptable.
We keep up to date on where most renters are searching and have formulated an advertising package that gives you value for money. This package also ensures your advertisement appears optimally to the majority of property seekers on realestate.com.au.
In a day and age when we want information faster, we also conduct a virtual tour of your property. Besides encouraging user engagement, it gives applicants a real feel for your property, increasing the chances your property is narrowed down as one of the first to inspect, amongst other comparable properties.
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Inspections Starting As Early As Possible
Please don’t settle for an agent who only shows your property once vacant; there’s no need for them to wait, as the legislation is quite clear. If your agent chooses to wait, this naturally leads to a longer and ideal vacancy period and, more than likely, a compromised rental amount.
We use an easy real estate online booking system that puts prospective renters in control and allows them to choose an inspection time that is convenient for them. Ultimately, this gets more people through the door. It’s also worth noting that we’re prepared to get tenants through your property five days per week.
According to our robust data, over 66% of potential renters that inspect with us select a day and time to inspect that suits them. However, due to their popularity, we still conduct set open for inspections on Saturdays. It’s another way we do everything we can to maximise the opportunity of your ideal renter finding and securing your property sooner.
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One-Day Turnaround on Applications
We have a dedicated team to review every application within one business day. Our fast turnaround means we secure the best renters for your property before anyone else does.
The aim of our 28-Day Rental Strategy is for a renter to be secured before your current renter has moved out.
Having a strategy in place is how we secure the best renters for the best price. By providing a seamless transition between renters, you will minimise any rental income loss and the stress typically associated with a renter leaving a property during an especially challenging time for the economy.
Rent Reviews
Your Dynamic Residential property manager will undertake a rent review at least 90 days before the anniversary date. They will determine what the rent would be if advertised today, look at what supply is currently available, how comparable these properties are to yours as well as time the potential rent increase for the historical peak period.
Our property management team is works with all rental providers to review their rental agreements to ensure they align with the current market.
If your property manager isn’t working hard for you, get in touch with the team at Dynamic Residential today and let’s minimise your property vacancy together with our trusted strategy. Call us on 0401 833 911 or 03 8600 1200.
