DR CHET SPEVENS | Finance Expert | CONTACT
Here in Betoota real estate laws dictate that leasing agents are not permitted to solicit or invite a person to offer more than the advertised rent.
For good reason. With Betoota’s low rental vacancy rates, hundreds of would-be tenants are showing up to every open inspection. With all that competition, some are taking it upon themselves to offer higher rents just to get that roof over their head.
Meaning your leasing agent doesn’t have to break the law anymore!
What a glorious country. With these huge crowds turning up to every opening inspection, it’s possible to double your weekly rent price. The renters are desperate.
There’s simply not enough houses to go round. It’s a landlord’s wet dream.
But this doesn’t mean you’ll automatically maximise your investment property’s potential rent. You still have to be smart about it.
And the trick is to create an auction-like atmosphere at the opening inspection. Don’t treat it like a rental, treat it like it’s a property you’re really selling. That means putting up banners, flags, getting some music pumping, and getting your leasing agent to bring their best suit and auction gavel to the party.
But remember, legally your leasing agent can’t invite higher bids, the prospective tenant must offer them. So your agent can’t actually say anything. But there’s nothing stopping him miming the actions. He can point and smile and shake his head and slam down the gavel when bids have reached their highest point.
Now if you’re the type of landlord I am, there’s a very small part of you that regrets price-gouging the lower class in their hour of desperate need. But let me ask you something: After just suffering through the most frightening housing correction in history, where your $2m properties lost almost 10% in value, don’t you think you are within your rights to make as much profit as you can while the sun is shining?
Of course you are! Landlords are God’s chosen people, so act accordingly.
So next opening inspection, illicit that mob mentality. Work the renters up into a buying frenzy like a pack of piranhas who’ve sensed blood in the water.
Do this, and they’ll happily cough up 75% of their take home pay towards rent.
