February was a pretty busy month with a lot of property being leased and some pretty interesting results for the Ryde Rental Market & Ryde rents…
We track a lot of different lead indicators when it comes to the Ryde rental market and I thought you might be interested in knowing what we know and what those numbers might mean for the coming year.
A couple of things these figures say to us. We have to have 6 people on average inspect a property before we get an application. And for every 5 applications we get, we only accept one. While the figures do show this, I can tell you from experience, of the applications rejected, we say no to 40% of them because we can’t confirm their history or references. In other words if in doubt, we would rather say no. About 30% are rejected because having confirmed their history, we don’t feel comfortable that they will be stable or look after the property. The final 30% are usually for financial reasons, either their rent they can pay is too little or their ability to pay too limited.
Ryde Rent Performance
67% of properties were leased at the price we wanted
14% of properties were leased above price what we wanted
17% of properties were leased below the price we wanted
Those results suggest a weaker market and giving the number of tenants looking, the best we can say is that we do not expect rents to improve over the coming year.
The last figure we look at is average vacancy – vacancy can be what hits landlords the hardest, so it is important to keep an eye on this figure!
Average Days Vacant – 18.4
This too, is an indicator that the rental market is quieter. Normally at this time of year we would expect the vacancy period to be falling below 14 days. We’ll see what March and autumn brings but we expect this year to be quite challenging. There will be more new property coming on the market and competition for good tenants will be fierce.