The condo market is facing an oversupply crisis, leaving many landlords with vacant units and increasing competition. In such a saturated market, landlords must adapt their strategies to stand out and continue attracting tenants. According to Richard Carvajal, a Registered Financial Planner, adjusting tactics and offering flexibility is key to surviving and thriving in this challenging environment.
“Incentives are a sure way to either attract potential tenants to check your property out or to convince existing tenants to renew their lease contract,” Carvajal told Financial Adviser PH. Offering incentives, such as a discount or a free month of rent, can make your property stand out from others in the oversupplied market.
“Competition for tenants is tight right now, so the best way to gain an edge over other landlords is by working on ways to improve the appearance and upgrade some features of your rental property,” he said. Landlords should consider small but effective improvements, such as fresh paint or upgrading outdated appliances, to attract new tenants and retain existing ones.
“No matter how aesthetically appealing your property may be, if you don’t market it where your target buyers can see what you have to offer, you’re not going to get any success renting it out,” Carvajal explained. He stresses the importance of effective marketing in a competitive market. Utilizing online listings, virtual tours, and creative advertising strategies can help landlords reach a wider pool of potential tenants.
“Be open to negotiations,” Carvajal recommended, emphasizing the need for flexibility during this time. Offering rent reductions, payment deferrals, or even converting missed payments into loans can help retain tenants and avoid vacancies.
“Your effort to go the extra mile in showing your tenants consideration and respect will go a long way to win your tenant’s loyalty,” Carvajal concluded. Building a strong relationship with tenants through respect and open communication is essential, especially when dealing with financial stress and uncertainties in the market.
The takeaway:
In the face of an oversupply crisis, landlords must be proactive and adaptable. Offering incentives, improving property presentation, utilizing creative marketing, being open to negotiations, and treating tenants with respect can all help ensure success in a competitive rental market.
