The rental market nationwide has been experiencing significant shifts, and as a leading property management company, The Rent Shop is closely monitoring these changes. Our data shows a substantial increase in rental supply, with a corresponding decrease in tenant demand, signalling a crucial period for landlords and property managers alike.
In early June, there was a noticeable trend: an increase in rental supply alongside a decrease in tenant viewing numbers. According to Trade Me data, the number of properties listed for rent has surged from 3,400 in February to a staggering 11,863 in July. This nearly threefold increase highlights amore competitive market for landlords, making it essential to adopt proactive strategies.
With the influx of rental properties, retaining existing tenants has become a priority. Stability is vital in uncertain markets, and we are advising our clients to consider offering incentives or flexible lease terms to keep their current tenants. A happy, long-term tenant can be more valuable than securing new ones, as it minimises vacancy periods and the associated costs.
In today's market, it's crucial to be realistic about rental pricing. Achieving the highest possible rent may not be feasible, and setting an overly ambitious price could result in prolonged vacancies. Instead, we recommend pricing properties competitively in comparison with nearby homes. This approach can make your property more attractive to prospective tenants, ensuring quicker occupancy.
To stand out in a crowded market consider offering incentives. Recently, we have collaborated with several owners to offer the first week free on new tenancies. This strategy not only gives your property an edge over the competition but also attracts more interest from potential tenants
One key strategy we recommend is holding off on excessive rent increases until the market stabilises. Keeping rent within market levels can help retain good tenants, who may be sensitive to rent hikes in an uncertain economic climate. Offering competitive rent rates ensures that your propertyremains attractive to tenants, reducing the risk of vacancies.
Despite the challenging market conditions, The Rent Shop has successfully rented out 190 properties in the last two months. Our "days on the market" (DOM) metric currently stands at 16 days, significantlybelow the industry average of 22 days. This is a testament to our robust property marketing strategies and the dedication of our team. Our DOM has increased by 29% from June last year, reflecting the broader market trend but still out performing many of our competitors.
Our success in this competitive environment is due to several keyfactors:
- We use a mix of online listings, social media, and local advertising to reach potential tenants.
- As a premium partner with Trade Me, your rental gets maximum exposure to the market, which helps capture the highest level of enquiry possible.
- High-quality visuals attract more serious enquiries and reduce time-wasting viewings. We also place signboards for visual appeal.
- Our team responds quickly to enquiries and accommodates viewing times that work for potential tenants, ensuring we don’t miss out on any opportunities.We have recently invested in Renti - a rental booking system that streamlines tenant enquiries, making it a lot more efficient and convenient for tenants. This is a user-friendly platform for scheduling viewings, managing applications, and communicating with prospective tenants, which helps reduce vacancies and enhances the overall tenant experience.
- We thoroughly screen potential tenants to ensure they are reliable and suitable, providing peace of mind to landlords.
- Whilst we invest in technology, we don’t hide behind it. – We will physically phone prospective tenants to confirm their interest levels and to assist them with the application process if necessary.
Additional Strategies for Navigating the Current Market
- In a competitive market, it's crucial to make your propertystand out. Simple improvements, such as fresh paint, landscaping, or minor repairs, can make a significant difference in attracting quality tenants.
- Offering flexible lease terms, such as shorter leases or the option to renew at a stable rate, can be attractive to tenants who may be uncertain about their long-term plans.
- Allowing pets can significantly widen your tenant pool, as many renters have pets. With the potential introduction of pet bonds, landlords can mitigate risks, making it a good time to consider this option.
- Good communication and responsiveness can enhance tenant satisfaction and loyalty. Regular check-ins and promptly addressing maintenance issues can help build a positive relationship, encouraging tenants to stay longer.
Navigating Forward
As we navigate these market changes, we are committed to staying ahead of the curve and providing exceptional service to our clients. We believe that with the right strategies, it's still possible to secure quality tenants quickly, even in a market flooded with listings.
If you're a landlord looking for expert property management, The RentShop is here to help. Our experienced team can provide tailored advice and support to ensure your rental property is managed effectively. Contact us today to learn more about our services and how we can assist you in these challenging times.You can contact our Business Development Team on 09555-9100
