Competition is the name of the game when it comes to rent levels and this story will become far more common.
As we have always tried to ensure we lease our properties to longer term tenants it is now common for us to have a situation where the rental market falling impacts the prices our landlords are achieving – the existing rents they were getting are now above market value. In one such occurrence a property that was being rented at $505/week had the tenants vacate. The owner is now getting $465/ week.
Our property managers always ring our tenants when we receive notice of them vacating to find out why. If it because of the rent we will try and renegotiate. Vacancy and rent reduction are a lot more painful than a rent reduction alone, particularly when the tenant vacating has been a good one.
The rental market out there is a very crowded crowd. There are 108 two bedroom units and 45 one bedroom units in Ryde right now looking for tenants.
If your property does come up for rent, this is what to look at:
Competitive Pricing – Anything thats over market isn’t getting looked at. I wish we could say different but it’s it just not happening.
Competitive Presentation – What was good enough 5 years ago, isn’t today. The only applications unattractive properties are attracting are from ‘unattractive’ tenants.
Competitive Marketing – one property that was taking longer to lease, leased right after we got new photos and new floorplans – including the interactive floorplan that keep people on the listing for longer. The new tenant had seen the property on the net but had not bothered to look until they saw the new marketing. Interactive floorplans and professional photography isn’t cheap at $275 but neither is vacancy!
To see an example of this, please click: https://www.realestate.com.au/property-unit-nsw-ryde-423926098