what about the rental market?

Much of the recent yarns around real estate have been focussed on whether property sales are up or down…but what about the rental market? It is worthwhile reflecting on this area of the market more specifically and what it means for landlords and tenants.

With the number of people attending rental viewings reaching in some cases the high 20’s and with unprecedented amounts of rental enquiries there is no doubt that it is a landlord’s market.

This acute demand for rental properties stretches across the board for homes of all price ranges; however the demand is particularly high for apartments and middle range homes. The influx of people requiring rental properties is partly fuelled by arrivals from over East and overseas, by affordability issues and difficulty in financing. There is also a growing demand for single occupancy accommodation.

According to REIWA, the plummeting rental vacancy rate from 3.4 per cent in the June quarter to 2.8 per cent in the September quarter is an indication that more individuals are choosing to rent than own, resulting in stronger rental returns for landlords.

On the other hand, the strong demand for rentals will progressively cause rent prices to rise. Combine this with falling interest rates and we will start to see the number of first home buyers increase. In short it’s a simple case of supply and demand and affordability is the key factor responsible for swinging the market which ever way.

But what should a property manager be doing in such a market context for you as a landlord you ask? They certainly should be providing you with letting solutions that maximise the return for your investment. Just as a sales agent should utilise solutions to ensure that your property isn’t under sold…they should be using methodology that ensures that you don’t under rent your investment.

You may have heard of Realmark’s sales method – Set Date Sale, whereby all offers are presented by a certain date with no set asking price advertised. We employ as one of our To Let options, a similar approach for listing rental properties – Set Date Rental; which ensures that the most competitive rental offers are presented which is vital in the current market.

However, price is not the only important consideration for landlords, property managers should also be employing a thorough and structured system to ensure that not only a good return is realised but screened and referenced quality tenants are secured as well.

An informed property manager can also alleviate the headaches of the legislative requirements, market your investment utilising multi-medium marketing strategies to attract the largest applicant pool as well as save your precious time ensuring your property is well looked after.

As for tenants, they need to be informed if they want to be competitive. For instance, every applicant should now have their own ‘tenant CV’ and be willing to sell themselves. This hasn’t always been necessary in previous years but is important in today’s market if you want to even be considered.

Needless to say, whether you are a landlord or a tenant you should remain educated about the ‘ins’ and ‘outs’ of renting, which can sometimes be a complex web of legislation and things you should know. To assist in sharing such knowledge, Realmark have launched an advisory website for tenants and landlords which can be accessed by visiting rentalpropertiesperth.net.au. There, people can find advice like how to create a memorable first impression for your rental property in order to achieve a premium rent price and equally as important, how to attract the right kind of tenant.