Melbourne landlords might need to lower rent to fill vacant properties: Leah Calnan

Melbourne landlords who find they are not receiving multiple enquiries every week about their vacant rental properties need to lower their rental expectations, according to Leah Calnan, director of Metro Property Management.

Speaking at yesterday’s Melbourne Home Buyer & Property Investor Show, Calnan described the Melbourne rental market as “a little bit tough” for landlords for the past year.

“If your enquiries are minimal, it’s a price point issue,” Calnan said.

She said Melbourne landlords should not always expect to receive the same rent or more for a property as tenants changed.

“You have to change with the market,” she said.

“It’s much better for you to receive 90% of that $500 a week, for example, than no money at all.”

She also pointed out that prospective tenants searched in price “blocks” – for example, $450-$495, and so landlords could appeal to a broader range of renters by ensuring the rent fell within that block. She said a difference of $5 a week, from $500 to $495, could entice prospective tenants who otherwise would not see the property in internet searches.

In addition to reducing their rental expectations, Calnan suggested landlords offer prospective tenants sweeteners and incentives to make their properties stand out. She suggested a free barbecue, free 12-month Foxtel contract, a Coles/Myer voucher or paying for the cost of removalists in order to entice tenants.

“For you it’s a tax deduction, but it’ll make the property more attractive to tenants,” Calnan said.