how to attract a tenant in a competitive market.

It’s no secret that COVID-19 has changed the way in which we interact, behave and consume products and services, with real estate not escaping this change.

Much of the change surrounds the competitiveness of the rental market in some areas, particularly in developments with a large supply of rental housing that was originally intended for a type of tenant that either no longer exists (at least for the short-term, i.e. international students), or has a changed spending appetite given a reduction in overall employment.

The tactics and ways in which agents (and owners) could attract a tenant to these type of properties is in need of change. This change is necessitated by a fundamental shift in the way in which tenants think and behave; owners who recognise this, and are appropriately guided by a strategic real estate agent, can stay ahead of the game and achieve a successful outcome sooner. Those who remain stuck to previous ideals (e.g. rents, terms and investment required), may see their properties remain vacant for longer, or end up coming to the table too late down the track.

So, with all of this said, what are some of the ways in which you can attract a tenant in a competitive market? Our answer; strategy.

Indeed, strategy is a ‘buzz word’, often spoken, but not so excellently executed in some cases.

Our first recommendation is to understand your property and where it sits. What are similar properties currently going for? How long have they been on the market? What is the demographic of tenant that typically lives in the property, and does your property still appeal to them?

We have some great data insights that allow us to gather this information with ease.

Once you understand where your property sits, now it’s time to see how your property presents.

When the market is so competitive, it’s important to recognise that while investing some money into the presentation of your property may not necessarily be a priority for you, something as small as a fresh coat of paint, in addition to a well-cleaned bathroom and kitchen, can make a world of different to a prospective tenant; it shows the tenant that you care about your property, and sets the expectation for a new tenant in keeping it well-maintained.

Just as when you have a shower, put on a fresh set of clothes and do your hair before going to a formal event or job interview as to give a good impression, the same logic applies to attracting a tenant in a vacant property. If it presents poorly, you can expect the tenant to try to negotiate further because of the work required, or even more likely, you’ll lose the deal to another similar property that looks nicer.

While there are an array of ways in which you can better position your property to attract a tenant sooner in a competitive market, these are just some ideas for you to ponder on.

For more advice and recommendations specific to your own property, please reach out - we’re happy to assist.