The Rental Market

The media is correct in saying that rental prices continue to rise and that there has been and will continue to be huge demand from tenants and as such prices will continue to push higher over the medium term. In March, the Sydney wide vacancy rate dropped to an unheard rate of 0.8%. You would normally expect around 2.2% if you look at the last 10 years. The following link is to SQM Research showing the weekly rental prices for the Northern Beaches. In March it got to a high of $1,690 per week for houses and $907 per week for apartments.

What we are seeing today as the weather cools is a drop in the enquiry level from prospective tenants and as a result lower prices than 3 months ago. Every year we see a seasonal drop in demand through Winter as less people move and demand for a beach or harbourside location drops off. It will pick up again when the weather warms up and days get longer. If you are a landlord it is important to keep your leases running for 12 month periods when the prices are higher – summer to summer or spring to spring. For people renting winter is always the most cost-effective time to be moving.

If you are curious on whether you are getting the most out of your investment property, please give me a call. We can run a quick check up to make sure you are maximising your property.