Leasing Your Apartment in a New Complex or High Development Area
Buying a new apartment is exciting, especially if it is brand new. There are no maintenance worries, you have a 90 days defect warranty and if you are an investor you can take full advantage of a tax depreciation schedule. However as in a new complex, you are probably not the only investor, in fact, more than likely 50% of the complex is also an investor.
So how do you lease your property with minimal vacancy?
There are a few strategies that you can implement to ensure you get someone in quickly and minimise your vacancy.
First, we have to understand the market and the situation. With a new complex, there is usually more stock than there is demand, so as an owner/investor you need to understand a few market factors.
1. The rental appraisal that you initially received when you bought off the plan is most likely unrealistic at this time due to the amount of stock.
2. There will be multiple agencies with open homes on regular Saturdays and Wednesdays.
3. Most of the properties will look very similar and will not have a unique point of difference outside of maybe the floorplan and the level.
While this can be a bit concerning, there are a few ways to battle this and get the best outcome you can during this time.
Be Conservative with pricing
By making your property the most attractive property in the complex will drive competition to the property. You can do this by advertising with a range to capture more people and in turn, this will give you some negotiating opportunity with the tenants rather than giving them all the power.
To battle the multiple listings and the twenty different real estate agents that are standing outside the complex on a Saturday. It is important to see if your agent is willing to do weekday inspections and private inspections. This will give you an advantage as prospective tenants will not just shop around and see multiple properties on a Saturday, instead, they will only have time to see yours and maybe one more during the week, leaving a lasting impression on the tenants.
Irregular Lease Term
This more so helps you the next time you are looking for a tenant. By Securing a lease that isn’t a multiple of 6 months can mean you break the cycle. While most other owners are securing a tenant for the regular six or twelve months, negotiate a 10 or 15 month lease with your tenant so you don’t have the same situation again in 6 months time where again there is too much stock on the market.
If you can implement these strategies then it will assist you with minimizing your vacancy and maximise your outcome in the current market but most importantly it will future proof you as well.