Could one simple strategy minimize the vacancy for your investment?

As a Sydney Investor, it’s likely that at some stage you’ve had a tenant on either a 6 or a 12-month lease. These have been the traditional lease terms. requested by tenants and offered by Landlords for many years;


But what if a simple change to this strategy could help to minimize your vacancy period?



As well as market cycles, rental demand is affected by seasonal trends. Even in the current market downturn, seasonal rental cycles are still evident.


These seasonal peaks and lows will vary depending on your property’s location, but as an example, year after year in the Eastern Suburbs & on the Upper North Shore we see a spike in rental enquiries and open home attendance over January and February when many tenants are looking to secure and then settle into new home before the school year, before the new work year, and whilst weather is warm.


Enquiry levels then start to dwindle around the end of March and into early April and remain sluggish right through to the start of Spring. Winter vacancies experience longer days on market and longer vacancy periods which often results in “below asking price rent” as tenants know they have the bargaining power.


By negotiating a fixed term lease that aligns with peak rental cycles in your area, you can decrease your chances of having to re-let your property during the slower times of year and maximize your chance of getting the best rental at a time when rentals are in high demand.


This may mean negotiating an 8 month or a 14-month lease for example, but many tenants are happy to do this if asked.


Alternatively, Investors with multiple properties may opt to stagger their lease end dates to avoid properties expiring at the same time resulting in multiple vacancies over their portfolio.


To find out more, contact your DiJones Investment Manager on 8356 7878.

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