The question that all landlords must think about is how best to attract tenants. New Zealand is predominantly a renting nation and competition is strong between landlords to secure the best possible tenants. Those landlords that use the appropriate mediums to market their properties and reach the widest audience are generally those that see higher rents, fewer vacancies, stable tenants and long term tenancies.
On any given day in any major city, there are hundreds of “For Let” advertisements chasing the elusive best tenant. In the main, the bulk of the ads are placed by private landlords (although this is changing), followed by licensed real estate property managers, and then non-licensed property managers. The amount of money spent on advertisements in the New Zealand Herald each month could be enough to feed a small third world country.
It seems that the first reaction of most private landlords and property managers when faced with a vacancy is to reach for the phone and place an advertisement in the paper. However there are alternative options to attract tenants which are more effective.
There are 8 broad “sources of tenants” that we find useful to monitor.
- Renewals−Existing tenants renewing fixed terms or moving into other properties we manage.
- NZ Herald−Largest metropolitan newspaper in Auckland market.
- Web Page−Allen Realty web page plus various other sites we use
- Local papers−Suburban and other print media.
- Corporate referrals−Organisations that refer tenants to us.
- Signs−For Rent signs on vacant property.
- Other referrals−Referrals from sources other than corporate.
- Other−All other sources
The following table summarizes three recent months of letting data, and from those we can make some interesting assumptions and conclusions. These show the % of properties rented for the month via each source.
What this table shows is that over a three month period an average of almost 40% of Allen Realty’s’ new tenants come from internal sources. Internal sources include our web page, www.allenrealty.co.nz, existing tenant movements/referrals, office listings, for rent signs and our prospective tenant database.
Other external New Zealand property websites are also useful sources at about 50% of all new tenancies. But most interesting to note is that the New Zealand Herald and local newspapers are NOT a significant source of attracting new tenants (this is probably one reason media companies are purchasing many websites). In this day and age where tenants have greater resources than the past, the majority of prospective tenants are not using the Herald and other papers to source property. Websites (whether an agents or external) provide prospective tenants with a platform to view properties, including many photos, and to also make comparisons between properties. From their home or office they use the web to investigate the area, its amenities and infrastructure. It is also interesting to note approximately a quarter of tenants secured actually use the web to apply to rent the property. So not only is it beneficial to advertise on-line but also to have a platform whereby tenants can apply on-line. It is not only about reaching your audience, but making it easy for them.
Clearly internet advertising must be a priority and it is essential to list properties on multiple sites. Although the cost of one advertisement on line is increasing (trademe is currently very high at $99 per listing), many property managers cover the cost of this charge in the management fees which average $22.50 per week plus GST. However, check the fine print as some property managers (usually unlicensed) on-charge this cost. Realestate.co.nz is also a good site, and like trademe, all Allen’s’ properties are listed on this site automatically.
Another interesting point is that our tenant vacancy rate stays reasonably stable year in and year out. Regardless of seasonality, tenant friendly rental markets, landlord friendly rental markets, the number of properties available in the market, government policy, or any other external factors, our vacancy percentage rate remains stable. This is only because we source a high proportion of new tenants from mediums other than the “open market” where most landlords are competing. If we were only advertising using standard mediums we would expect a higher vacancy rate as the market experiences its seasonal lows. However, like other professional property managers Allen Realty has an advantage in attracting new tenants, as not only do we cover many bases but enquiries come to us.
All landlords, large or small should be recording the source of the new tenant, so they can decide where to allocate their resources based on facts. If a private landlord or small rental agency relies solely on newspaper advertising, the result could be little success in attracting tenants, and long vacancy periods. Think outside the square and maximise your exposure! Those landlords using multiple mediums to advertise for tenants will generally be the investors that get more bang for their buck!
Coworking Countdown – 4 Things to Prepare Before You Move In
The coworking scene has done anything but slowed down. Coworking spaces in Auckland alone vary between your upmarket, corporate office to the trendier, chic ones. Certainly, investing in this type of commercial real estate has never been more attractive. There is a space for everyone in this landscape and for businesses looking for new workspaces there’s not only variety available, there’s options at an affordable price.
When a business has finally found an office, in one of these buildings they have not only found a workspace, they’ve also found community as well. One coworking space – Servcorp – is a good example of the way work and networking have intersected to provide business with the chance to grow. This new way of leasing premises is highly attractive to the leasee and the property owner. Here are some tips for moving into a new coworking space, so the business can prepare to maximise their working experience.
Continue reading to learn what you can do to prepare for your move to your new coworking space to ensure the move is as seamless as possible.
Coworking presents professionals with the chance to use the space to just work or to build on their professional network. Before getting comfortable in your new office, sit down and take inventory of the tasks beyond work that you would like to accomplish. When writing down your goals and objectives, keep in mind the types of activities that you would like to engage in the space.
Of the many activities, formal networking events and community social events are the types you want to pay attention to if you plan to use the space to build a social network. Not that you have to be out and about every night, but scheduling time to promote your business is one way to maximise the coworking space. Ultimately, if the purpose of coworking is to build a networking platform or to grow your business, find ways to incorporate the more social aspect of the space.
Tool Of The Trade
Another thing that professionals moving into a coworking space should prepare for is knowing what amenities the space provides. Standard spaces fit out the office with exceptional IT services and office equipment, but other amenities include programs and conferences that help teach entrepreneurs how to build their businesses. Before moving into your space, consider checking out all the perks of working in your coworking space.
Moreover, make sure you know what is available for use in the office, so as to bring supplies if necessary. While staplers and other office products come standard in a conventional office, some spaces might not make this available to employees. On a larger scale, make sure there is a receptionist available, and if not, know exactly how to retrieve any messages.
Change Of Business Address
Before leaving your conventional or home office, make sure that clients and other important people know your new location and phone number. One simple way to do this is to email clients of your relocation as to avoid any mix-ups. Furthermore, make sure to forward any business mail to your new location, as to avoid missing important parcels. Finally, make sure you know the building’s office hours for scheduling appointments.
Check out the coworking space’s event calendar. In addition to the numerous networking opportunities in the day, many coworking communities hold events to get the professionals to engage with each other. Make an exerted effort to attend at least a few of the events every week to raise your business’s profile. You never know what opportunity awaits when engaging people from your profession and others.
Preparing And Putting Coworking To Work
Coworking makes moving effortless simply by alleviating much of the work associated with relocating. You can, however, maximise your move by putting together an agenda of how you plan to use the work to benefit your business. Your plan will help you use your space more effectively for building a platform for business success.
Auction Site For Renters
New Zealand will soon see the rise of a new auction site for renters. Just in on stuff.co.nz Rentberry has confirmed they will be launching here and in Australia. The online service offers renters the opportunity to bid for rental properties. Landlords set the ‘reserve’ or rent level they hope will generate lots of prospective tenants interest and then the bidding war takes off.
New Zealand will soon see the rise of a new auction site for renters. Just in on stuff.co.nz Rentberry has confirmed they will be launching here and in Australia. The online service offers renters the opportunity to bid for rental properties. Landlords set the ‘reserve’ or rent level they hope will generate lots of prospective tenants interest and then the bidding war takes off. Landlords get the final say on whom is the successful applicant and while they may review the highest bids first, they won’t be choosing the tenant just based on what they’re prepared to pay.
An Auckland property management company spokesperson said common-sense will prevail among Landlords. Securing long term tenancies with tenants that have good credit histories and references will remain the top priority. Prospective tenants information is available to the Landlord in the service so they can select the tenant without delay.
Rentberry will provide more transparency of the selection process with prospective tenants and Landlords learning what the true market value is for their property. This is a positive move for investors especially those who are new to the rental market and Landlords whom self manage their rental properties and may currently be charging more or less rent.
There has been some healthy criticism of the service even in it’s infancy. In America affordable housing advocates are angered by the service and tenant groups in Australia are wary that the service will push up prices.
Rentberry has been operating in the USA since 2016 and is currently expanding into 1000 cities there. It’s focus is on renting Apartments and this is where we see the service take off in our neck of the woods in our main centres in New Zealand.
This blog article was written for PropertyBlogs by Mobilize Mail.
Tenants Let Off With 4.8% Increase
Weekly rents rose just 4.8 percent in the twelve months to July 2016 according to Trade Me Rent Price Index. Tenants will be relieved Landlords are being realistic and not keen on hiking rents arbitrarily. Property sales have slowed and the average asking price has dropped significantly up ten percent since July 2015.
Weekly rents rose just 4.8 percent in the twelve months to July 2016 according to Trade Me Rent Price Index. Tenants will be relieved Landlords are being realistic and not keen on hiking rents arbitrarily
Property sales have slowed and the average asking price has dropped significantly up ten percent since July 2015. Of particular interest is the slow down in property asking prices in Auckland where a typical property listed in June was just $3,750 less than the asking price in July. According to this article Investors are buying most of the houses.
In Auckland City and on the North Shore investors have purchased 50 percent of the properties on the market. A North Shore and Auckland City property management company spokesperson said investors are listing new properties with them. In Auckland City it’s mostly apartments and there’s high demand for quality living quarters downtown.
“In July 2011 New Zealand’s median weekly rent was $350 a week, that has risen by $90 a week over the past 5 years, while at the same time the increase in the average asking price of a typical New Zealand property has risen by $200,000 an increase of 51 per cent.”
While there’s the odd sensational article on ‘greedy landlords’ hiking rents to unprecedented levels evidence proves otherwise and tenants are the winners.
In the regions there has been some catch up with rents rising by double digit percentages in Northland, Manawatu, and Marlborough. However urban average rents have remained stagnant.
This blog article was written for PropertyBlogs by Mobilize Mail.
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