When reviewing an investment property, it is natural to focus on the weekly rent.
But the highest advertised rent does not always deliver the strongest overall return.
As tenants gain more choice across Sydney, landlords need to consider the bigger picture.
Every Week of Vacancy Has a Cost
An extra $20 or $30 per week can look attractive on paper.
But if a higher asking price causes the property to remain vacant for longer, that additional income can quickly disappear.
For example, securing the right tenant sooner may deliver a better annual outcome than holding out several weeks for a slightly higher rent.
That is why pricing needs to reflect current tenant demand, comparable properties and how your investment is performing in its local market.
Look Beyond the Weekly Number
Rental return is not only about rent.
Vacancy, tenant retention, property presentation and the quality of applications all contribute to the performance of an investment.
A well positioned property can attract stronger enquiry and give landlords a better opportunity to secure a quality, long term tenant.
Finding the Right Balance
The goal should not be to price an investment property cheaply.
It is about finding the right balance between maximising rental income and minimising unnecessary vacancy.
That balance can change as the market changes.
Regularly reviewing your rental strategy can help ensure your investment remains competitive and continues performing over the long term.
If you would like to understand how your property is positioned in the current Sydney rental market, speak with the Saliba Property Management team.