With record low-interest rates, and a bias towards owner-occupier lending it is no surprise tenants are becoming homeowners, which is then having a ripple effect on the rental market. Also in addition to the Influx of brand new units and apartments, predominately being purchased by investors, tenants are spoilt for choice when it comes to rental options at the moment.
Even Zoran and Maddyson from the Hot Property team recently had a tenant break a lease due to the fact they had purchased a home, so this can happen to anyone.
Here are some helpful tips to help guide you through this period;
Discuss a Strategy
The first thing you want to do after a tenant has given your property manager notice they are breaking their lease is to discuss a strategy of when to launch the property online and begin marketing the property. Here at Hot Property Management, we like to launch properties as soon as possible to try and replace the tenant in a timely manner, usually 3-4 weeks prior to the vacate date is a good guide.
Secondly, consider any maintenance items that you can do to assist in attracting a replacement tenant this isn’t an opportunity to do a full renovation or anything. But perhaps a good time to trim large trees, mulch yards, install fans, update light fittings, install A/C units. These relatively small things that don’t cost all that much money, can really make a big difference when advertising a property for lease.
Although it’s not an obligation of the owner to do these sorts of things when a break lease occurs, it shows that you as an owner are assisting in reducing the tenants’ potential loss and it helps to limit your exposure to a potential vacancy.
The general rule is that the tenant is obligated to pay rent until a new tenant is found which is true. However, you as an owner need to act reasonably to assist in sourcing a replacement tenant, whether that be adjusting the rent to meet the market, or as in this case, invest into the property to assist in leasing it out.
Is your Property Manager giving you this sort of feedback? If not perhaps it’s time to change.
Contact the team at Hot Property Management today to discuss how we can help, 07) 3170 3760