- There can be an understandable rush to bring in a new tenancy
- Having a pause, sorting out arrangements before starting a new one can reap dividends
- It's all about building relationships - in the article, 7 tips are provided
Only a little bit more than a few years ago, a landlord would be lucky if he had a short period in between tenancies. However, in the current uplifting property market, properties are leasing faster than we have seen in recent times with reduced stock on the market.
What is the best way to manage a short vacancy period in between tenancies? Here are seven tips…
Tip one: Do a pre-final inspection roughly one month before the current tenant has to hand over the property.
The pre-final inspection is valuable for both landlords and tenants, as it brings clarity around the requirements before the property is ready for hand over and avoids issues or disputes at a later stage. The property manager can prepare a list of items that may still require the tenant’s attention and provide another month for the occupying tenant to attend to the matters. The result is that the property will be ready for the new tenant when the previous one vacates.
Tip two: Share the initial property condition report with the tenant.
This report gives a clear idea of what we expect from the tenant and will assist them in bringing the property back to the standard it was in when they moved into the premises.
Tip three: Communicate with the current tenant, and let them know that the landlord has a deal with a new incoming tenant, and let them know the start date.
This information will give the tenant urgency to get the property ready.
Tip four: Allow a little bit of time between tenancies.
It is much better to allow for some loss of rental income than starting the new tenancy in a rushed manner, which can cause frustration during the early stages of the new relationship.
Tip five: Communicate with the new tenant, and let them know if there is a delay in handing over the property.
I recently had a tenancy where the start date got delayed by a month due to the previous tenant not being able to hand over the property at the initially agreed date. I saved the relationship by communicating with the new tenant, meeting them on-site, and keeping them informed.
Tip six: Offer support and availability.
Moving premises is one of the most stressful things for business owners and managers as it puts intense pressure on their resources. By showing support, showing you are available and ready to facilitate the transition for both the vacating and incoming tenant, and sharing information on their rights and obligations according to their lease, they will appreciate your efforts, and relationships stay intact.
Tip seven: Be friendly, professional, and approachable to all parties of the transaction at all times.
Property Managers and owners do not always know what happens on the other end. By remaining respectful to all parties involved, everybody will be appreciative and hopefully repay the respect to you by return business or by giving you referrals.
Bonus tip: Prioritise your mental health above all.
As property investors and property managers, we deal with many scenarios that are ultimately beyond our control. We can manage the situation and communicate as best as possible, but we cannot always control the situation. Remember to prioritise your mental health when this happens.
Short vacancy periods might sound like music in the ears of investors. However, it could bring along intense pressure that has to be avoided or managed depending on the situation. These seven tips might be a good source of information to assist with these ideal short vacancy periods. Good luck, and enjoy having an occupied building.