If everything is set right, there is no reason why your property can’t rent straight away. Your property will rent based on the following four things:
Location
Presentation
Rental amount
Time of year
One of the most important things when it comes to deciding the rent amount is to get it right from day one.
Quite often people will price their property for rent based on what is currently advertised on the web. We know that although properties are listed for a certain price, it may not be what it is eventually rented for.
Those properties that are overpriced, yes, they will be ON the market, but not necessarily IN the market.
Peak interest in properties is within the first two days of the property being advertised. We found on Trade Me, that between day two and day three of a property being advertised there was a decrease in enquiries of a staggering 41%. This really highlights that for the best opportunity to rent the property quickly to quality tenants, the rent needs to be realistic from day one.
Case Study
Our client wanted $420 per week for their property which we felt was not where the market was. We advertised the property at $420 per week and we received very limited enquiry. We advised the client that $400 per week was where we felt the market was. Property listed for $400 per week. A viewing was held on day three of the property being advertised, we had four groups of people come through with one group then applying. By day four we had a confirmed tenancy at $400 per week.
We could have rented it for $420 per week but it would have taken a lot longer. Let us say three weeks. A loss of three weeks rent at $420 is $1260. A loss of the $20 decrease between the two rent prices over a year is only $1040. Although we do not get the highest rent price, in this case, we have maximised the amount of profit the client received and saved them $220.
