Selling your home can sometimes be a daunting and somewhat stressful journey, particularly if the house you intend to sell is occupied by tenants. It is for this reason it is very important to sell your investment property with your managing agency.
Read below to find out why you will save time, money and maintain your peace of mind…
1. Relationships are everything
Selling your property with residing tenants is about coming to a mutual agreement. Your real estate agent will need compliance from the tenant to complete a number of essential tasks integral to sell your property. These tasks can include styling the property, taking photographs for marketing, hosting one (if not more) open homes, and/or conducting multiple private viewings.
As you can probably understand, this can become an inconvenience for the tenants and can result in conflict between real estate agent and tenant. It is not uncommon for a tenant to refuse photography of any personal items in the house, which can prove to be very difficult.
By selling with your managing agent, you can avoid this conflict as the tenant already has a trusting relationship with the agency. They are much more likely to allow access to their home and to maintain the property at a certain standard that is needed to sell a house. It can give a tenant peace of mind knowing they are dealing with a single entity that they know and trust.
This relationship between tenant and agency also allows you, as an owner, to sell with your tenancy still in place, rather than waiting until the tenants vacate. This will save you money as you will continue to receive a steady income whilst the property is on the market.
2. Connections generate attention
Selling with your managing agency also automatically comes with an established relationship with a very large rent roll. Did you know that Arrive manages over 400 properties, resulting in an ongoing relationship with over 1700 tenants and owners?
Your Arrive agent will notify all owners looking to increase their portfolio as well as our active buyer database, which can even result in selling your property off the market – saving you thousands of dollars!
Additionally, if an investor has their eye on your property, they’ll generally be pleased that there is an already existing tenant at settlement. This is because they won’t have to search for someone to rent the space, and also they’ll be receiving rent immediately following settlement.
3. Location, location, location
Your managing agency will have extensive expert knowledge of the area your property is located in. Our agents are privity to school catchment areas, socio-economic targeting & interest, buyer idiosyncrasies, historical events, access points, motorways, bus routes and various other location-specific secrets that are exclusive to that particular area code.
This expert knowledge of your property’s area can result in a faster and more valuable sale, resulting in satisfaction on both ends of the transaction.
As a property manager, your landlords engage you not only for your ability to upkeep their properties but also for your ability to help them maximise their rental yield. The more value you add to your clients, the more satisfied they will be and the more referrals they will send your way.
To help you out, we’ve compiled five ways you can help your landlords boost their rental yield:
1. Reduce their costs and expenses
The simplest way to calculate rental yield is to take the annual rental income, deduct any annual expenses and costs from it and divide this number by the purchase price, then multiply that figure by 100 to get a percentage. This means that the lower the costs and expenses associated with the property, the greater the rental yield.
There are a few straightforward ways to do this such as conducting regular inspections to avoid small maintenance issues from snowballing, reducing maintenance costs by hiring efficient tradespeople, avoiding tenant turnover by carefully screening tenants, retaining great tenants and staying up to date with market insights to minimise vacancy rates.
2. Furnish the rental property
A furnished rental property can be much more attractive to potential renters who don’t have their own furniture. It’s a complete package that can often attract a higher rent. However, you should do the math before deciding whether to furnish the property or not. You should consider the cost of the furniture, potential cost of damages and any associated tax benefits such as claiming the value of the furniture.
Additionally, even if you decide to leave the property unfurnished, you can still furnish the rental property for open for inspections or real estate photos and videos to showcase the potential of the space. Be sure to make it clear to potential tenants that the property is to be rented without furniture.
3. Upgrade household appliances
Do the household appliances look like they’re from the 80s or 90s?
If so, you might want to look into upgrading the dishwasher, air-conditioner, heater, taps and replacing older kitchen appliances with more modern ones. In the long run, this can help you attract higher quality tenants and help your landlord save on maintenance costs which far outweighs the initial cost of new or quality second hand appliances.
4. Renovate the property
If the rental property has a study that isn’t being used or a formal dining room that is outdated, you can convert the unused space into an extra bedroom to automatically increase your landlord’s rental returns.
You can also consider refreshing the bathroom or kitchen, restoring the flooring or carpet, adding a fresh coat of paint or updating old lighting fixtures to boost the rental yield and value of the property in the long run.
5. Invest in quality real estate photography
Don’t underestimate the power of quality real estate photography as it can make or break your listing. Not only can it entice potential tenants to click through to the listing but it can also motivate them to attend an open for inspection.
In addition to that, quality real estate photos can help you attract a larger pool of quality tenants and increase your chances of leasing the property sooner. So be sure to highlight the top selling points of the property in the photos. For example, if the property has a great view or a spacious, sunlit living room, don’t leave it up to the imagination!