Owners – we get it. You don’t want excuses and you don’t want delays – you just want the damn rent paid on time! It’s not too much to ask, but how do you ensure it happens?
As residential property managers in Sydney, we started really thinking about this issue almost a decade ago. Today, 99% of our tenants actually pay in advance on average. Here’s how we manage it.
Setting up direct debit payments for rent
The one single change that makes a huge difference at Let’s Rent is requiring tenants to pay their rent on a fortnightly or monthly basis via direct debit. This minimises the chance that someone will forget to pay their rent, and allows us to pinpoint any issues quickly. Many tenants actually prefer the convenience of direct debit, so it works for everyone.
Setting the expectation for zero arrears
At Let’s Rent we’re proud that our arrears are consistently less than 1% of all properties we manage. How do we manage such an impressive rate? We make it clear from the start that we have an expectation of zero arrears, which ensures everyone is on the same page. If for any reason a payment doesn’t go through, we let you know and actively work with the tenant to get balances back to normal.
Finding the right tenants
Of course, some tenants are more reliable th
an others. One of the most important elements is to find the right tenant in the first place, who has a history of reliable payments and a solid employment history. We know how crucial this is to rental reliability, which is why we dedicate extra time and effort into our pre-tenancy reference checks including picking up the phone. You should expect nothing less from professional real estate investment property management in Sydney.
Maintaining respectful relationships with tenants
There can be horror stories about the fraught relationships between landlord and tenants – but we believe this tension can be completely avoided with mutual respect. We build strong and respectful relationships with tenants, and respond to maintenance and repair requests without delay. Tenants are much more likely to respect tenancy conditions and pay regularly when they’re satisfied with the arrangements and feel valued.
Reviewing rent regularly
Rental reviews are a must to ensure you’re receiving reliable and appropriate return on your investment property. We review rents every year for every property, providing a market review on whether a rental increase is recommended or not. Experience can make all the difference between getting maximum rental yield for your property and risking a property vacancy – we’ll help you get that balance right.
Let’s Rent is the go-to solution when you’re looking for investment property managers in Sydney or agents to help find rentals. You can learn more about why owners love to rent with us, or contact us today to get started.
In the last four weeks, we’ve seen an increase in stock with a general rolling over of tenants into new properties as their leases expire. Yes, they are looking for value and an increase in amenity. Those who are out and about are primarily those in employment rather than people who are struggling with reductions in wages.
Clearly, when leases are coming up for renewal, the first thing tenants are asking for is a reduction in rent. We are managing these requests with care and consideration around maintaining the tenancy without reducing rents to below-market levels.
We have done an incredible job for our clients in maintaining the percentage of tenancies on lease which is a smidge over 89% at the end of July. The high number of tenancies on leases has provided our clients with much greater security in tenure as well as maintaining rental levels. To put this into context, many agencies only have 50-65% on their tenants on leases, the rest are on month to month leases which allows tenants the opportunity to vacate at any time with 21 days’ notice.
The May REI vacancy rate for Inner Sydney increased from 5.0% in May to 5.8% in June in contrast to Let’s Rent’s vacancy rate being 5.4% and 2.3% respectively. Our vacancy rate for end of July has crept up to 3% which is above the level considered to be a balance between owner and tenant interests which is 2%. We are doing our best to keep it as low as we can in these challenging times.
Six month average: 2.4%
REI Vacancy Rate Inner Sydney
Six month average: 3.9%
Take care and stay safe.
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