You know that feeling that comes as Christmas gets closer?
The stressed, oh no! feeling? Our Property Managers tend to start feeling the Christmas stress around mid-November as Ryde rental demand drops while the numbers of tenants moving out of properties increases. The Ryde rental market slows.
This year, Christmas seems to be starting early. Rental enquiry has dropped 42% compared to one month ago and the number of people applying for property has fallen by a whopping 71%. In September we received 208 applications. In October that number fell to just 62!
Supply of property is increasing. For example, there are 68 two bedroom units available for lease on realestate.com.au in the Ryde area right now. We expect these numbers to rise as we head towards Christmas with more tenants giving notice and the supply of rental properties increases as new apartment buildings come up to completion.
Typically over this period of time we see many agents cut asking rents by as much as 10% to get property rented. For the last 4 years we have continued to show property over the Christmas break but an analysis of the results does not give much cause for hope. Between the 20th December and the 10th of January, while we have had plenty of inspections we are still to rent a property during this time.
While vacancy is bad, a bad tenant is worse. And there are plenty around. We watch out for applications with time gaps between properties leased, employers that are evasive and agents who we know have a history of giving glowing references for tenants that have moved address too often for comfort.
None of this is what you would want to hear if your property is coming up for rent. If your property is coming vacant, we will do our best to find you a good tenant. If your property is coming up for a rent review we may hold off until we get into the new year. The Ryde rental market has definitely dropped, which means to get the best out of your investment property, vacant or tenanted, you do need to tread carefully. You need to know what the rental market is doing, and respond intelligently.
If you’d like to know more about what the Ryde rental market is doing, or would like to subscribe to our monthly rental market updates – please contact us here.