RENTING WHILE SELLING
Updated: Sep 28, 2020
Are you looking to sell your apartment? Do you want to earn some additional income while doing that? Is your answer "Yes" to both questions? Then read on.
The Missing 137 Days
According to statistics published in Domain in August 2019, a property is listed on the Sydney market for an average of 90 days before it is sold (up from 66 days from July the previous year) , while the average settlement period is about 6 weeks (42 days). This means that adding them all up, an average homeowner like yourself trying to sell his or her home can expect the whole transaction to take anywhere up to 137 days to complete.
If your property is vacant during this entire period, that means your income is ‘zero’.
Why keep your property empty for 4.5 months?
If you are making an investment today, say for $1 million, will you accept an investment term that generate no returns for 4.5 months? Then why are homeowners happy to leave their homes empty for the entire selling period?
For most homeowners selling an investment property, the focus is on the eventual sell price, rather than the rental income during this decisive time.
On the one hand, once a selling notice is sent out, tenants who have the right to vacate the property with a short notice period tend to do so to avoid disruptions and having to constantly coordinate inspection times. On the other hand, selling agents usually recommend owners to keep the property unoccupied, but furnished, so that it is always well presented during inspections. In fact, it is now common practice to rent furniture to ‘stage’ a property into an aspirational home- an effort to attract prospective buyers to move the property faster.
With pressure coming from all sides, homeowners may feel like they have no other choice, and simply factor this period of rental loss as the “cost” of selling.
But we have a solution: Rent while you sell
Airhosty saw the opportunity to minimize this loss through our short lease management service. We challenge the presumption that property in an ownership transition period should automatically lose its default function as a place to live in, an opportunity cost to owners, as well as a wasted resource for the economy.
Armed with a strong property management background with an experienced hospitality team, we understand an agent’s urgency to sell, an owner’s desire to obtain the highest price possible, and the frustration of tenants having to manage and coordinate inspections. Airhosty offers a holistic package for homeowners who are looking for a hassle-free way to earn additional income while selling their property. This is a unique proposition, and we know we can deliver because:
We can get the property ready to lease in as short as 5 working days
We have an experienced team that will manage the entire process
We have a working relationship with multiple short-term lease platforms, such as Airbnb, HomeAway, so that your property gets the maximum exposure, and not a day is wasted getting it leased.
In fact, to make it easier, we will even coordinate inspection time with your agent so that you don’t have to worry about any of it.
Killing 3 Birds with 1 Stone
1. Your agent will testify that a well-styled apartment (compared to an empty one) could help to set the right atmosphere and perhaps helps to move your property faster and potentially even fetch a better price.
2. Take some pressure off to sell in a rush, sometimes at the expense of accepting a lower price than you want to.
3. Earn an additional income.
It's Tried and Tested
Using this method, we have successfully managed multiple properties, and our clients saw additional income up to $ 31,000 during the selling process.
This is especially true as the property market softens over the last year, and we see increasingly longer selling periods.
Below are some actual case studies from our previous experiences managing the properties:
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