Attracting Tenants Post COVID-19
I’ve been hearing grumblings in the media that landlords are struggling to collect rents from tenants.
I’m sure you’ve probably been hearing the same.
Is there any “real” truth to it?
Well, I’ve got a substantial property portfolio... and I can tell you right now I’ve got no issues with rents.
Maybe it’s because I chose the right properties to invest in from the start. Or maybe it’s because I’ve got great property managers. I don’t have this problem myself.
However, I can see that it may be a problem out there because many people lost jobs. And no jobs equal no rents, right?
So, how do we remedy this?
How do we attract tenants in this post-COVID-19 environment?
I have three tips for you:
Reduce Rent
You can hold off on trying to get market rent or maximum rent. And that’s going to hurt your cash flow long term. Or you can reduce your rent to attract more tenants.
Negotiate a Reduced Rent
This next one is a two-part deal.
You can negotiate a reduced rent and defer a portion later on down the track.
As an example, I noticed that some of our clients are in a situation with some tenants where they’ll take a bit less upfront but get the balance back at the end.
This can work as long as you have an agreement drawn out and get into communication with your tenant.
Get Creative with Offers
It’s also time to get creative to attract tenants. I’ve seen people offering Netflix subscriptions and Foxtel subscriptions for a small period of time. You may not think that it means a lot, but it could be the difference between getting a tenant and not getting one.
Regardless of which tip you choose, just remember:
Reduced rent and reduced cash flow are better than no cash flow at all.
Speaking of cash flow, if you’re looking for more opportunities to expand your cash flow…