It is the new year and the Ryde Rental Market is off and running.
Open houses are well attended and we currently have 95 prospective tenants booked in to see various properties at the next available open for inspections.
There have been a number of reports from government bodies on the current state of the rental market and delving in to the figures has really been a worthwhile exercise.
Did you know that according to the NSW Rental Bond board, the average tenancy length in Ryde Council area is less than 3 years. Rent.Com (a purely residential property website for leasing property) has analysed their figures and found the average vacancy period now in Sydney is 22 days. Vacancy is measures as the time between old tenant moving out and new tenant paying a deposit to lease the property. If we add one week between tenant depositing a rental and actually moving in to the property that makes a real vacancy period of 29 days minimum. Agents renting these properties charge one weeks letting fee so the owners are out of pocket 36 days rent all up and that is not including advertising costs. Whats important is that this is happening every three years so most owners are loosing 12 days rent each year on average.
I’m pleased to say we at Jackson+Rowe do a lot better. Our average turnover of tenants is 5 years, not 3. And our average period from old tenant vacating to new tenant paying deposit is 15 days. The all up effect, our clients loose on average slightly less than 6 days rent a year. Percentage wise, that means our clients earn 2% more than landlords who employ our competitors. And because our properties turnover less often, our clients have to do renovations less often to get their property rented. That’s an additional saving of $1000’s.
Another thing we know from our internal figures, the better presentation and equipped a property is when being shown for rent, the better the quality of tenant applying. And for us good tenants are people who will say in your property longer. Longer tenancies are a win:win as they say!
If you’d like to read our December Update please click here.