Current Permanent Rental Market<< Back to Blog
Traditionally, the months between November to April are a key period for tenancies ending and beginning and markets of the past have displayed greater demand than supply. Now, however, those looking to rent on the Coast have a greater range to choose from and, even with an increased number of people wanting to rent, are able to be more discerning with their choices and take their pick from a range of properties.
“In the past, a property that became vacant would have six people vying for it, whereas now tenants have six properties to choose from. Choice for renters is far better than in the past.” It’s a curious situation that while there are more new people joining the Coast’s rental market, there is a wealth of choice for renters far greater than it has been for some years. While landlords may have to do more to secure a tenant than in previous years, the prospects for their property as a long term investment are good.
Rental prices on the Coast have levelled off in recent months after rising substantially by 10 to 15 per cent in the past couple of years, which may not be great news for landlords in the short term, but the long term outlook is looking good thanks to the fluctuations in the residential sales market. “Now is a great time to add to your portfolio because the net returns have strengthened with the lower sale prices,” “Over the last 18 months, rent prices have increased but sales prices have decreased over the last year.
The cost of buying rental property is 10 per cent less than 18 months ago, and the rental income is 10 per cent more. That means the net return is strong – five per cent compared to the usual four.” Landlords have to work hard to secure tenants. For tenants, this means not only do they have less urgency when looking for rental, but they also will have a higher standard of properties from which to choose.
For landlords, it means their property could potentially sit vacant for a long time, so they might have to spend money to improve the property and make it stand out from the competition. “Landlords have to market their property as best they can” So what do tenants look for? “Tenants now have options and choices and they are looking for quality. The key items tenants are looking for are solid, sound structural buildings that are low maintenance, have garages, ensuites, airconditioning and family rooms.
“They are also after security and modern homes where they don’t have to deal with maintenance issues. Location can also be another key requirement of prospective tenants. “A three or four-bedroom house with two bathrooms and a double lock-up garage is the most popular rental, particularly with side access for a caravan or a boat. “What we are finding is families want to be in school zones, while couples and singles are seeking proximity to the beach, recreational activities and entertainment.”
Landlords need to also be smart in their rental prices. “Tenants do have more choice and they shop online. If a landlord is asking too much, the prospective tenants just won’t show up. Likewise, tenants will save $10 per week on their rent if they possibly can. You really need to put your best forward.” Read more at www.mypropertypreview.com.au North Shore Realty promotes available permanent rentals using the major websites that specialise in real estate rental promotion, rental listing handouts, the touch screen at our Coolum Beach office and through our database of prospective tenants. Your property manager will contact you each week while your property is available for re let.