How to increase your investment property's occupancy rate

At a time when vacancy rates at rising and tenant’s ability to pay full rent in decline, if you happen to own an investment property, you want to do everything in your power to keep your investment afloat to turn out a profit. Planning is essential when it comes to investing in property successfully.

However, there is one investor's nightmare that can impact your finances. Having a vacant property is one of those risk that come with owning an investment property.

Here are three tips to help you in reducing this risk. 

Is your rent realistic?

One thing that can attract or repel tenants is whether you have a rent rate that is affordable for the area in which it is in. Pricing too low can also put you at risk of missing out on an income that can balance your cash flow.

As an investor, it is important to do your research on the property market which you are investing in.

Knowing the comparable price for similar property in the area your investment is in can ensure that your rental price is realistic. 

If you find yourself in a situation where rental demand has decreased for your property and the market as a whole. You should decrease the rent accordingly so that you do not lose on your cash flow entirely and your property will not be left vacant.  

Timing your rental right

Another key factor is knowing your timing when it comes to letting your property. The rental property market also works in cycles and in-sync with the economic outlook.

Factoring in the economic conditions, will give you an insight into how long you need to make your lease period so that when it ends, you know how easy it will be to find new tenants.

For example, if your property is in a suburb favoured by university students, you don’t want your lease to end mid-term, when hardly any student is looking to relocate. Especially now, when the market is saturated with short term rental properties coming on to the market and converting into long term rentals.

Keep your property in mint condition

Keeping your property in good condition is vital. Another way to do this is to view your property in the same way a tenant would view it. Giving your property a fresh lick of paint and repairing it accordingly can attract tenants.

Anything that is worn out needs to be thrown out and replaced or bolted into stability. Remember, if you wouldn’t want to live it yourself, why should anyone else!

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This article via Your Mortgage does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.