Which is best: a fixed-term agreement or a periodic agreement?

Whereas fixed-term agreements have definitive start and end dates, a periodic agreement—also known as a “month-to-month” agreement—has no end date. Each has its pros and cons, all of which should be considered for the affects they may have on you.

Fixed-Term Agreement

• Provides a more consistent income, offering greater security and peace of mind.
• Enables you to more easily forecast and budget for repairs and other expenses.
• Allows for rent increases to be written in.
• The term can end during peak rental seasons, giving you more control over your property and a greater ROI.
• Ending a fixed-term agreement requires the tenant be provided with a two-month notice to leave. Should a tenant wish to leave before the fixed term’s expiration, they are required to give a 14-day notice when ending the agreement.

• The tenant has the right to dictate when the agreement is ended.
• A commitment to a particular duration of tenancy is not required by the tenant beyond the period necessary for the notice.
• The opportunity for rent increase is often missed — the tenancy continues undisturbed unless the agency diligently monitors all periodic agreements.
• Tenants may end the agreement during slow seasons, which may result in longer vacancies, leading to potentially significant losses in income.
• If vacant possession is required, the lessor/agent must provide a two-month notice to leave without grounds.

Key Takeaways:
Carefully consider your investment property’s overall goals before deciding on the term that suits you best. While periodic agreements may provide more flexibility for those wishing to sell or develop the property, fixed term agreements provide greater security and control of your investment, as well as greater peace of mind.

Be sure to discuss your investment goals with your property management agency. Provided you have no immediate goals for your property that require vacant possession, coordinating a fixed-term agreement with peak rental seasons may prove the more beneficial option.

How can we attract the right tenants?

As a landlord, finding the right tenants is vital to your success. An ideal tenant is one that consistently provides prompt rent payments and treats your property with the same level of care that you would. It’s also important keep in mind that the same property characteristics that appeal to you may not appeal to all tenants, so it helps to market specifically to the type of tenant that is looking for what your properties provide.

Factors that can affect the type of prospective tenants you attract are the time of year, how your property is presented, the advertised rent and the processes you have in place to properly handle enquiries.

Once you have settled on a suitable application that asks all the right questions and gathers all the right information, thorough application evaluations should be your next priority. Proper investigation into rental histories, tenancy databases, rent payment histories, references and previous property inspection reports are all important considerations when distinguishing ideal tenants from your pool of applicants.

Key Takeaways:
Prospective tenant applications require quality over quantity — but having both is the best way to secure ideal tenants for every single one of your properties. Paying close attention to the factors above is how Image Property Management can help you achieve it.

How much will my property rent for?

This is every investor’s top question. Performing searches on realestate.com.au or domain.com.au may be an acceptable way to gauge comparable properties, but they aren’t the final word on how your property should be priced when it’s ready for market.

Image Property Management has access to market industry data software that allows us to create a Comparative Rental Analysis (CRA) before you advertise your property. A CRA provides a much more in-depth market analysis of similar properties, including their exact rental amounts and how long it took for them to be rented.

Most importantly, the CRA shows the difference between original advertised prices and the actual subsequent rents, often showing a significant gap between the two.

Key Takeaways:

Current rental listings may provide some superficial insight into comparable properties, but they are most often a far cry from actual reality. Substantial discrepancies between advertised prices and actual rents more accurately reflect the facts behind the nuanced and ever-changing real estate market. Equally critical is how long it takes similar properties to rent—an especially important factor if your property has been sitting vacant.

By providing the crucial data of a thorough CRA on your properties, we can help maximum rents to match exactly what the market is willing to pay at any given time.

How long will it take to rent my property?

How long a rental property remains on the market indicates a number of things: its pricing compared to similar properties, its presentation to prospective tenants and specific market demand for properties like yours. Vacant properties may necessitate an alternative approach to currently occupied ones in order to reduce periods of vacancy.

Your property management firm should provide you with current “days on market” figures for properties comparable to yours. These figures can inform your dialogue and help you settle on optimal pricing in order to reduce vacancy periods and ensure maximum income consistency that is also optimised for the current market.

Key Takeaways:

The pricing and market demand for comparable properties, in conjunction with the proactive approach of your property management agency are the biggest determiners for how long it will take to rent your property.

Which is best: open inspections or private viewings?

Not long ago, open inspections were considered the preferred viewing method for most any rental property, but such is generally no longer the case. Open inspections involved a publicly advertised date and time for potential tenants to stop in, view the property and ask any questions they may have. The main disadvantage is that it allows whoever wishes to attend, without any prior vetting by the landlord or their property management agency.

Private viewings have become more popular, allowing potential tenants to be investigated prior to the viewing to ensure they are serious, reliable prospects. Many property management firms utilize software like Inspect Real Estate, which lets prospective tenants the ability to book an online inspection. The property manager now has their name, phone number, and email address, allowing the agent to perform a preliminary screening of the potential tenant ahead of time.

Though single parties generally schedule private viewings, your property management agent may include other prospective tenants to attend at the same date and time, or they may cap the number of viewers allowed for security purposes. If there is currently a tenant occupying the property in questions, respecting their privacy should be a priority, helping ensure the tenant transition remains amicable.

Key Takeaways:

While private viewings have gained in popularity, both viewing methods are still viable options, and you should choose one that best suits your preferences. Whatever method you choose, your current tenant’s privacy, your property’s security and your property manager’s safety should remain your top priorities.