As we ease our way into autumn we have seen our vacancy rate steadily increase from as low as 0% in March to 1.16% as at end of April 2010. Historically this is still very low level of vacancy. Typically we do see the vacancy rates showing an upward trend in the autumn and winter months. (Refer to the Vacancy Graph below).
Did you know that our leasing strategy differs throughout the year depending on seasonal fluctuations in the rental market?
One such instance is leasing property during the months of May, June & early July each year. During this period we recommend lease terms of 7, 8 or 9 months. This ensures that any leases written will expire from mid January of the following year and in turn ensures that your property is tenanted across the Christmas holiday period, avoiding the possibility of extended vacancy periods.
Whilst this may result in maintaining rent at the same level for a longer period, any potential vacancy in the Christmas holiday period (December/January) would quickly erode any financial gain achieved through a rent increase opportunity in say, November or December. This information is general advice, and I must stress that our recommendations are based on a case by case basis, taking into account individual clients requirements.
You may be interested to know that our entire team from Focus attended the Leading Property Managers of Australia, National Property Management Conference in April and returned with some great ideas to use in our business.
We were also honored to be awarded ‘Property Management Website of the Year - 2010.’ I encourage you to have a look as we have a fantastic resource section ‘Investor Tools with information from interest rates to legislation.
Feel free to contact your property manager if you have any further questions.
Until next time, take care.
- Bernie Mitchell
