Beware before your Rental Property Lease Expires
With the expected increase of rental properties for lease and rise in vacancy rates, as short term rentals convert from eg Airbnb to longer term rentals and as more tenants move back home or in with friends to reduce/share the rental costs in the COVID-19 economy, it is a good idea to check when your leases come up for renewal and check what the market rental rates are doing in your property location.
Are there a lot more available rentals now?
Is the rent for a similar property to yours notably lower than your current rent?
Don’t just rely on the agents, do your research and check yourself on the rentals listed on realestate.com.au and domain.com.au for example.
While it might not guarantee that your property won’t become vacant, perhaps it is worth considering reducing the rent to your existing tenants if they are good and you want them to stick around, so that when the lease renewal is closer, your rent is already at market value or slightly below and has been for the last couple of months before lease renewal and why would they leave for a slightly cheaper property unless they had no choice, especially with an understanding landlord as well!
That way you save on lost rent if the property sits on the market for a while vacant and advertising and lease renewal fees by thinking ahead and ensuring your property remains competitive in the market…..These costs will most likely exceed the reduced rent.
Just food for thought!