For many property investors, the new financial year means it is time to review the leasing agreements on their investments. Whilst a great, long-term tenant is the goal of most property investors, it can be difficult to gauge whether the time is right for a rental adjustment.
Speaking to your property manager about the current average rent for similar properties in the area will help you determine if your return is in line with comparable rents in our suburb.
If you decide to increase the weekly rent, ensure it is a gradual rise, rather than a one-off spike that can cause your tenant/s to leave.
Winter is traditionally a difficult time to rent properties in a coastal town. Our team worked very hard to reduce our vacancy rates before winter hit, but you will see that the change in season has caught some Agents off guard.
Our rental market has had a battering recently. We have suffered a downturn that can be attributed to the coal crisis. The ripple down effect of the miner lay-offs is still being felt. Added to that is a lack of confidence in the employment sector. Tenants have been leaving rentals to move in with family, so actually leaving the rental market all together
This downturn in rental inquiry was noticed by our team and we communicated that to our landlords immediately.
Although it is sometimes alarming news to receive, it is vital for a landlord to make informed decisions, especially when the may not live locally and be unaware of the market shift.
Media reports of strong rental demand in other locations can produce false confidence, or the assumption that the Rental Market is the same everywhere. That is simply not the case.
It is vital that your Property Manager notices any changes in the market and keeps you informed.