Plus learn the facts – Lease renewals
Vacancy rates for the month of February in our office were at an all-time low and by the end of the month were still sitting at 0%.
It truly astonishes me that more people aren’t investing in property on the Central Coast when we’ve got higher than ever returns, low vacancy rates and exceptionally strong demand.And many experts are also tipping the Central Coast to be one of the next hot spots in terms of capital growth.
We had a prospective tenant call into the office just last week simply to confirm that our website was showing the correct information with only one rental property available. The answer to her query was yes.
For any prospective tenants we suggest that they call or email agents to request that their details be registered onto their database. In our case, we issue weekly updates about new properties that have hit the market. To register for our weekly property alerts, email us at firstname.lastname@example.org
Demand is still far outweighing supply on the Coast meaning there’s never been a better time to start or expand your investment property portfolio.
Lease renewals – the facts
A good managing agent always keeps on top of lease renewals. This month we’ve been contacting many of our landlords about their upcoming lease renewals and recommend that all landlords are diligent about keeping on top of this process to ensure it’s not left until the last minute, by which time the tenant may have found somewhere else to go. If you’ve got an A1 tenant living in your property – one who pays the rent on time and looks after your property well – then it pays to keep them as long as possible. A 12-month lease is a particularly good term as it offers a win/win all round. The tenant has the security of knowing they will not have to move and the landlord has a guaranteed income for this period.
We find some landlords are sceptical about offering long term leases to their tenants for fear that something may go wrong. In reality, if something goes wrong with a tenancy, the landlord has the right to seek termination, the process being the same regardless of the term of the lease.
The managing agent’s job is to help create property wealth and having a guaranteed income is a huge part of that. Always make sure your agent reviews the rent before offering the tenant a further lease term to ensure you are achieving an amount that is in line with the current market. In short, if you have an A1 tenant, lock them in and regularly renew and review their lease!