Stand out in a cooling market

Key strategies for landlords to attract tenants

As predicted, the rental market is starting to cool, and landlords must adapt to remain competitive. Recent data from Trade Me Property shows a 40% increase in rental listings in July 2024 compared to last year. This surge means landlords must work harder to attract and retain tenants. Two critical factors that can make a property stand out in this increasingly competitive market are ensuring the property is well-presented and considering a pet-friendly policy. 

An increase in rental stock naturally leads to more options for tenants who can afford to be more selective about where they live. Properties that are poorly presented or do not meet modern tenants' needs may struggle to attract interest. When supply exceeds demand, well-presented properties are more likely to secure tenants quickly and at fair market rent.

To give you an example of how the market has changed, OneHub powered by Trade Me highlights the increases in listings from July 2024 to July 2023.

For landlords, having a property available is no longer enough; it must be presented in the best possible light.

The Importance of property presentation

First impressions are crucial in the rental market. A well-presented property attracts more interest and can justify a higher rental price. Tenants seek clean, modern, and well-maintained homes that are environmentally friendly and affordable.

To achieve this, landlords should focus on the following five key areas:  

• Understand your market: Tenants have options, so understand your marketplace and your property's appeal. Consider the demographics - if the property is safe for young children or can be made safe for them. A broader appeal increases the chances of securing a good tenant.
• Cleanliness and Maintenance: A spotless property shows tenants that the landlord is diligent and cares about maintenance, giving them confidence that issues will be promptly addressed. Maintenance issues should be resolved before marketing. Prospective tenants often look for faults, so a well-maintained, compliant property is essential. 
• Modern Fixtures and Fittings: Investing in modern fixtures like updated kitchens and bathrooms can make a property more appealing. Even minor updates, like replacing outdated light fixtures or adding a fresh coat of paint, can significantly enhance the property's appeal. Also, think about modern-day living, such as EV Charges, LED lighting, and security. 
• Marketing: Now that the property is well presented, marketing should commence, and your property must stand out. If you are using an agency, find out what platforms they will be publishing on, and do you have the option to get a premium marketing package? Ensure the listing has professional photographs, and consider staging the property to help potential tenants visualize themselves living there. Use walk-through tours and floorplans. Finally, a good old-fashioned 'For Rent' sign on the property ensures that your property will be well marketed to local traffic, whether it be on wheels or foot. 
• Pet-friendly: Besides well-presented properties, landlords should consider the benefits of allowing pets. As the number of rental properties on the market increases, landlords who offer pet-friendly accommodations may find themselves with a competitive edge. Many tenants, particularly families and individuals who rent long-term are pet owners. However, finding rental properties that allow pets can be challenging, creating an underserved market. By opening their properties to tenants with pets, landlords can attract a broader pool of potential tenants and often secure longer-term leases. Moreover, by offering a pet-friendly policy, landlords can foster goodwill with tenants, leading to a more positive landlord-tenant relationship. 

Of course, there are potential risks associated with allowing pets, such as damage to the property. However, these risks can be mitigated with a well-drafted pet agreement outlining the tenant's responsibilities and requiring an additional pet bond. 

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