We think this market peaked some time ago! And not just in this area.That’s not saying we are facing massive rent reductions across all rent ranges but there are some price pockets that are struggling. Newer units are facing a lot of competition and the market is constantly making more new product available for rent as large developments in the area are being completed. The last three months have been particularly difficult as the rental market has seen a much larger increase in tenants moving to newer properties, buying properties and having properties sold that they had been renting.
One new trend that is an absolutely great idea, is that we are starting to modernise properties while the tenants are living in them. Full kitchens and bathroom replacements are being completed in a two week period. The tenants obviously must be agreeable and the rent is abated for the period. The result: The work is timed to fit owner's cash flow, the down time is only two weeks and the tenants get a new property and are able to stay. The owner avoids having to wait for the tenant to give notice and move out before ordering a kitchen. That order usually takes 6 weeks, installing the kitchen another 1 or 2 and then getting the place re-rented 2 more weeks after that. If you have a good tenant, they will stay and pay a higher rent for a better property.