Today, Heather Jopson shares how the team at Beyond PM help manage your vacancy costs to maximise your return.
Watch the video to find out more.
Transcript for: ‘How We Help You Manage Vacancy Costs?’
“Vacancy cost is one of the harder items for a property investor to plan for. You can plan for your rates, your water, your insurance each year but maintenance and vacancy are two things that come out of the blue at you a little bit sometimes.
So, you need to know that the property manager that you’re working with has got genuine strategies in place to reduce your vacancy costs.
What’s Not An Admin Job?
A couple of the things that we do at Beyond Property Management; When we’re drawing up a lease for a client, this is not an ‘admin job’, this is a strategic job and we’re looking at ways to minimise the vacancy costs overall for our client.
What’s The Best Time Of The Year To Start The Lease?
So, we’re going to look at what time of year is best for your property for the lease to come up; If you’re a house with ducted air conditioning and a pool, you don’t want your lease ending in the middle of winter because that’s not when people are going to be pay you a premium for those beautiful summer services.
A lease, actually, doesn’t have to be 6 or 12 months; Legally a lease just needs a start date and an end date. So, it’s really important that we look at the time of year that we’re having your lease end for you.
What Day In The Week To End The Lease?
Another thing that we do is actually even to the detail of looking at the day of the week that we end your lease. We have our leases ending on a Monday; That means that we can do our vacant inspection on a Tuesday, it gives Wednesday for the tenant to return for any cleaning or maintenance items; And then Thursday we’re doing the new entry condition report for your new tenant to move in on Friday.
Why Is This Important!
That’s a really quick turnaround and if end the lease on any other day then our client is incurring vacancy on a Saturday and Sunday. If we’re looking at a $420 a week rental, that’s a $140 to our client.
So, you need to make sure that your property manager respects your money down to even that little detail like that; Because those things are really important in terms of looking at vacancy cost and the overall return that you’re getting from your property.”