Risk 3 – Rental Vacancy

I am going to jump straight into Risk 3 – Rental Vacancy as this one can be very challenging!

What is a rental vacancy? Quite simply, your investment property doesn’t have a tenant and you have to foot the bill for the mortgage. There are three ways to avoid rental vacancy:

1. Buy a property that is in demand in a market with a very small vacancy rate. This ensures that your property will always be popular and you’re guaranteed to easily find tenants.

2. Set your rent to $10-$20 cheaper than the market rate. It may sound like you’re throwing money away, but you’re not! When you add it up, $10 per week is equal to $520 per year. If your rent is set at $500 per week, you’re basically only losing one week’s worth of rent.
When you compare that to a vacancy that can last upwards of two weeks, it makes sense to price your rent slightly lower to ensure you always have a demand.

3. Get a reputable property/rental manager and make sure that they LOVE YOU🥰
Send them flowers, heap praise on them, and make sure that they think you are the best thing since sliced bread. Why?
Whenever they have four properties that are vacant and only one tenant is looking for somewhere to rent, if your rental manager loves you, they’re going to give that tenant to
you. If you get cranky with your rental manager, giving them a hard time they are going to put your property as the lowest priority and that is going to cost you.

Is this making sense?

Next, I will break down the 4th risk – Interest Rate Rises.

If you want more information please reach out to my team at 1300 372 677 or info@integrityx.com.au.

~Daimien Patterson

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Legal Disclaimer: This information ('the information') is presented for illustrative and educational purposes only. It is not presented nor should it be treated as real estate advice, legal advice, investment advice, or tax advice. All investments involve risk and potential loss of money. If you require advice in any of these fields you should contact a suitably qualified professional to assist and advise you. Your personal individual financial circumstances must be taken into account before you make any investment decision. We urge you to do this in conjunction with a suitably qualified professional. Daimien Patterson, IntegrityX Enterprises Pty Ltd, and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers do not guarantee your past, present or future investment results whether based on this information or otherwise. Daimien Patterson, IntegrityX Enterprises Pty Ltd and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers disclaim all liability for your purchase decisions. You should do your own independent due diligence and seek the advice of qualified advisors before making any investment decision.