On Friday, REINSW made sure to tell residential investors to not panic about the record high residential vacancy rates across New South Wales.
“Seasonally June and July are the worst months for rental vacancies across the board in Sydney,” emphasized DiJONES General Manager and REINSW member Kylie Walsh.
Walsh suggested that investors tap a professional agent to help them fill their vacancies, and also suggested that they should be ready to budget for durations of vacant possession.
“In order to maximise returns it is important for agents to work with their investors on insuring fixed term tenancies do not expire or come up for renewal during the winter months,” she said.
Suggesting one strategy to combat the problem, Walsh suggested signing tenants for nine or 18-month leases, instead of a standard six or 12 month contract. This will help investors avoid being exposed to seasonal fluctuations.
She added that current market conditions should also push investors to find innovative ways to market rental properties.
“Given the large number of property investments across Sydney, traditional forms of marketing may not work in certain markets.
“Investors should be looking at premium marketing packages on major portals, targeted social media campaigns, illuminated or picture signboards, and where appropriate placing virtual furniture in vacant properties.”
Finally, Walsh said that drone footage should also be considered if a property is near education, medical or transport facilities.
“We’re finding there is a high demand for good quality family homes, single villas and large townhouses. On the other hand, dated apartments and units without car parking are becoming a challenge to lease.”
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