How To Minimise Vacancy When You Purchase An Investment Property

If you are you looking to purchase your next investment property, we can help you minimise vacancy from day 1.

When we know that one of our existing clients is going to purchase another investment property, we assist them to negotiate being allowed to advertise the property for rent and show the property prior to settlement. In addition to this, it is important to obtain permission to use the photographs from the For Sale advertisement. Often this discussion is left until after contracts have already been exchanged. By then it is too late.

For example, we had a client purchase a house in Keiraville. They were not able to negotiate showing the property for lease prior to settlement, but we were able to advertise the property three weeks before settlement. We advertised the property at $80 per week above what the selling agent had quoted. The first inspection was booked for 5pm on the day of settlement, with 18 people registering their interest. At that first inspection, we had 12 attend, and we received 2 applications. The approved tenant then moved in within one week of the property being available.

Another example, is a client of ours purchased an apartment in Wollongong. Prior to exchange, it was agreed with the vendor that the property could be advertised immediately, and shown 3 times prior to settlement. The rental appraisal by the selling agent was $330 per week, but we advertised it at $350 per week. 30 people registered their interest in the property, and at the first inspection, we had 21 people attend. 3 applications were then received. We had the tenant ready to move into the property on the day after settlement.

By following this process the property is vacant for the minimum time possible and we can maximise the rent.

In summary, during the process of making an offer on your new investment property, it’s really important to discuss and obtain an agreement on the following points:

1. Advertise the property for rent after exchange but before settlement
2. Use of the “For Sale” advertising photos
3. Show the property to prospective tenants prior to settlement

 

If you would like to discuss how to approach a selling agent with these requests, give us a call (02 4228 2555) and we’ll be happy to assist you.