Record Rental Demand
Depending on whose report you read, rental vacancy rates across Australia went down to somewhere between 1.47% and 0.8% in February, either way around half the level seen before the pandemic and the lowest level since late 2018.
Tenants are finding rental choice limited Australia-wide.
Most cities have tight rental conditions with tenants faring better in regional centres where vacancy rates may be higher. Hobart, Canberra, Darwin and, to a lesser extent, Adelaide may offer the best capital city news for tenants.
It is now harder to find a rental property in state capitals than their regional counterparts for the first time since the pandemic started. Low supply and increased demand drive the ongoing rental crisis, and this doesn’t auger well for tenants.
With demand for rentals expected to remain strong, the financial pressure renters across the country are already feeling will be exacerbated over the remainder of the year.
In Australia, the rental markets are heavily dominated by investors like yourself rather than corporate or institutional investors. And while you might feel the urge to ramp up your rental return, we ask our landlords to consider what they value in tenants.
- A good tenant will consistently pay rent on time, which ensures your investment property continues to deliver you an ongoing income stream.
- A tenant that cares about your property is instrumental when it comes to maintaining the value of your investment.
- Having a good tenant who communicates well with your property manager is a great asset.
- Keeping a good tenant in your property long-term is a worthy goal.
If there is no relief in sight for renters as prices continue to rise due to the chronic housing shortage, the way to increase supply is to get more people buying residential properties that already exist and make them available for rent… or build a lot more properties and make them available for rent. And look to State and Federal Governments for meaningful action on housing, with reforms and investor incentives that might boost the rental supply.
SOURCE: RE/MAX Australia
