Well the rental market is continuing to slow which probably isn’t a surprise to anyone who has had a property for rent this month.
And if that’s you, you aren’t alone. According to Rent.com.au, across Sydney the number of days a unit is vacant before finding a tenant is now 24 days with a house is taking 27 days.
When you add to those periods an extra 10 days on average between a new tenant being secured (which is when rent.com.au treat the property as leased) and the tenants actually moving in and paying rent, we are really faced with well over a month’s vacancy.
Again, our friends in Rent.com.au report that their average rent advertised hasn’t moved which is good news because over the last 6 months that figure has been falling each month. Across our rent roll we have seen the same with property being rented averaging pretty much the same amounts as what they were leasing for when the tenants vacated. The harsh reality is though that a number of these properties were being updated and improved in some way between tenants so clients are having to spending money to keep their properties bringing in the same rent. Given that we are competing against more and more new properties, this probably isn’t so surprising. Prudent management to maximize your properties investment & careful consideration is again, the rules of the residential investment game!
Lastly, I thought this might interest you given all the myth and rumour about the tribunal and our ability to protect owners. In the last 2 months we have made claims on 12 tenants bonds out of 39 who vacated. That’s 70% of vacating tenants who moved out and left the properties clean and rent paid up. Of the 30% who didn’t and we had to claim money, our property managers handled the conversations so that all paid without dispute. The average amount claimed was less than $500. Over the years we find that the vast majority of bond claims can be handled without triggering a visit to tribunal.