Why do properties remain vacant?
Posted on 07. Oct, 2009 by Karen Herbert in Letting, Tenants
My property has been vacant for over 3 weeks now and I am told that we have a shortage of rentals in Brisbane. Why can’t my agent rent my property? Why do properties remain vacant?
The rent is too high
The market and the tenants determine rent. Your agent should monitor the market rent to ensure that you are receiving the maximum return on your investment. High rents can lead to long-term vacancies, which ultimately affects your income.
High vacancy rate
If there is a high ratio of properties to tenants (more properties than tenants) it will have an effect on the vacancy factor. Tenants have more choices and are in a stronger position to negotiate on rents.
Poor presentation
It is important that the property is maintained in an excellent condition to attract the same quality of tenant. A tenant will often have a choice between a number of properties.
Accessibility to local facilities and transport
Often the property can be maintained in an excellent condition, the rent is at market value and it still remains vacant. This could be due to its location. Tenants may require a property that is close to town, shops, clubs, beach, transport, schools etc.
Your agent should make every reasonable endeavour to locate a quality tenant to suit your investment property and should keep you updated on a weekly basis on the progress in obtaining a tenant
Karen Herbert is the Principal of Position One, based in Brisbane, Australia. For further information or help with renting out and managing your property, please visit the Position One website.
