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Rental market moving forward
Stabilisation and a definite increase in demand for rental properties
year on year can be attributed mainly to the limited lending by all four
major banks, the over-supply of investment properties and where
desperate investors felt pressured to lower their rental prices.
Landlords also recognised the advantage of quality tenants and kept
their rental price the same to ensure continuation. Another factor is
the stable and low interest rates that affected most landlords, keeping
their monthly bond repayments at the same levels.
Tenants
have enjoyed flat to relatively low rental increases over the last 3
years. This was due to an oversupply of stock, and gave no leverage for
negotiations.
This year
sees the supply and demand dynamics shifting. There are more tenants
than stock, especially in the low to mid-priced properties allowing
property managers and landlords to be more choosey when placing a
tenant. It is very important to place the right tenant with clean credit
record, stable income and confirmed affordability. Ultimately the
landlord has the most to lose if a delinquent tenant is placed.
A property
that is in good condition attracts a better quality tenants. Also, make
sure property is well maintained throughout the lease term so the tenant
cannot use any "defects" as an excuse to withhold rent. |
