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Strategic Rental Pricing in a Flooded Rental Market - Why Chasing the Highest Rent Could Be Costing You More
If you're a landlord in Mount Barker, it's time to take a serious look at your rental pricing strategy. Right now, the local rental market is saturated, with 41 properties currently available for lease, and the average time to secure a tenant sitting at around 40 days — that’s nearly six weeks of no rental income. For landlords relying on steady cash flow, that kind of vacancy can hit hard.
Why is my Property Sitting Vacant?
Many landlords fall into the trap of thinking, “If I price it high, I’ll get more return.” But what this mindset often overlooks is the relationship between price, demand, and vacancy.
When you set your rent at the higher end of the scale, you significantly reduce the pool of tenants who can afford it. Fewer enquiries, fewer applications, and ultimately, a longer time on the market.
In fact, according to recent data, the average rental price in Mount Barker is now out of reach for the average household income in the area. This means a growing portion of local renters simply can’t afford what's being advertised. Even those who technically can afford it are likely to shop around — and they’re comparing your property to others that are more affordable or offer better value.
What High Pricing Actually Gets You
When a rental sits empty, every day is money lost. Even just a few weeks of vacancy each year can wipe out any gains from charging an extra $20 or $30 per week. Plus, properties that are overpriced tend to attract short-term tenants, who are more likely to move again at the end of their initial lease — leaving you with more advertising costs, more leasing fees, and another potential 6-week vacancy.
Let’s break that down:
* No rent for 6 weeks = ~$3,000 loss (based on $500/week rent)
* Leasing fee & advertising = ~$500–$1,000 each time
* Short-term tenants = higher turnover and maintenance wear
That’s a potential $4,000+ loss per vacancy cycle — all because the rent was priced slightly too high.
How to Get It Right
Now compare that to a different approach: pricing your property competitively based on current market conditions. Not “cheap,” but realistic and appealing.
By aligning your rent with what long-term tenants are actively looking for — and can actually afford — you attract a wider range of applications, find the right fit faster, and often secure tenants who stay for multiple years.
Long-term tenants =
* No advertising or re-letting fees every 12 months
* Fewer vacancy periods
* Better tenant relationships and care for the property
* Stable, consistent income
It’s not just about “getting someone in the door.” It’s about choosing a pricing strategy that supports the health and longevity of your investment.
Let’s Do the Math:
Option A: High rent ($540/week), but 6 weeks’ vacancy every year
Annual rent: $540 x 46 weeks = $24,840
Option B: Fair market rent ($500/week), no vacancy
Annual rent: $500 x 52 weeks = $26,000
That's $1,160 more in your pocket by charging less per week — simply by eliminating the vacancy period.
Peace of Mind Matters
In a tight and competitive rental market like Mount Barker, chasing the highest possible rent isn’t a strategy — it’s a gamble. With the average household already struggling to meet current rental prices, landlords who price smart will have the upper hand.
By prioritising tenant demand, affordability, and long-term relationships, you create a stable, consistent income stream — and save yourself the stress and cost of frequent turnover.
Your rental property is an investment. Price it like one.
