One principal has implemented a clever idea to stop rental gaps: pay existing tenants to help market the property.
Elevate Property Group director Daniel Bligh has introduced a cashback incentive for tenants who provide good access and presentation that gets the property leased during tenancy.
According to Mr Bligh, the idea has been offered to select landlords who are willing to pay some money back to tenants in order to avoid long vacancy periods after leases finish.
“My theory is that if we can offer incentives for tenants to tidy up the place, have it really presentable and give us a chance to show prospective tenants, then it’s in landlords’ best interests since it can be leased nice and quickly,” he said.
Mr Bligh told RPM another benefit of this system is that the property looks more presentable for photos and open homes.
“It markets the property in its best light when you photograph it or show it to prospective replacement tenants,” he said.
“Rather than a vacant shell, they’ve got their furniture and it looks more like a home, so people can really envisage living there.”
Mr Bligh noted that the offer isn’t for all landlords, since some don’t see the benefit or can’t weigh up between paying tenants upfront and losing money during vacancy.
“When you’ve got a property that is still tenanted, obviously the owner is still getting income, so the best way to avoid a few weeks’ lapse in income is to have it in its best light before it even becomes vacant,” he said.
According to Mr Bligh, it has to be done on a case-by-case basis since some tenants aren’t comfortable having their belongings photographed and advertised in listings.
“If you approach it right, compliment the tenant on their furniture and tell them it would photograph nicely, then they get on board with the fact that they’re helping you out and they can benefit also.”