Melbourne rentals for us have been up and down, very similar to sales.
One week you are shocked with numbers and visits, the next week you are scratching your head thinking what has changed and you have had queues of people walking through your properties with multiple applications…
Location is such an important factor when choosing an investment property, ask your buyer advocate where they believe the right places to purchase are.. Again they work in this field daily too!
With all properties, sales and rentals we all need to focus on our long term goal – Capital Growth…
If you have purchased an investment property that is not renovated, and lacks that wow factor it could well take longer to rent out unless it is in a location where there are little or no other properties for desperate tenants to move into at the time – is this bad, not always, remember you have bought the investment as a long term investment, and hopefully for a great price, allowing you the potential to value add.
At some point through your investments time, you may need to make the decision to tidy up the gardens, re paint, re do a kitchen / bathroom. (Your property manager can usually assist will any or all of this)..
However this needs to all be added up to what your budget has allowed and what the property manager recommends will add value and appeal to your property to ensure you get the best return without over capitalising.
An issue with some rentals are landlord expectations, if your property manager has done all due diligence and recommended the rent needs readjusting then you should listen, we watch monitor and work in this field daily.
If you reduce your rent minimally to meet the market and tenant the property out quickly, you will find the small adjustment you make could add up to less considering the time the property could be vacant.
This will all be discussed when we initially meet and work out a marketing strategy.
We notice at the moment properties especially units that are a tad updated, or have good size living areas are renting out quicker than something a little smaller. Again this changes when there are multiple properties in certain areas, it all boils back to demand vs supply…
This is where all the data companies work there numbers on, and there numbers can alter as much as they do in the sales data.. To get a median rental price, you place all rental prices in a line from lowest to highest and then take the middle figure; not always accurate, however these are the statistics all the media grab.
With regards to houses, the lower maintenance the gardens require the better, not all tenants have lawn mowers however this can all be discussed to be added or have the rents adjusted to allow someone to come and do the gardens or maintenance as required (your property manager can organise this also).
Inner city units are popular at the moment for investors.
With this happening remember when it comes to renting it out, at certain times there could be a lot of similar properties available at the one time, you need to think about this, especially if you are hoping for higher rent return, you will need to ensure your property is going to appeal to more people than the others, and this means, don’t paint it to just suit you, use neutral colours, same with blinds etc.,
If a unit doesn’t have washing machine facilities, some potential tenants will go to the next property, if the property doesn’t have good off street parking, potential tenants will keep looking especially if they have multiple choice. As street parking can be costly in some areas.
Location and proximity to public transport, again a very important factor to potential tenants.
If your property is close to public transport you will get people coming to look at it. The more visits you get, the greater the chance to tenant the property out quicker.
Always remember first impressions are important. If your property requires a small outlay to start with, it should pay you back faster if you have done is wisely. Your property manager is always willing to assist with ideas and recommendations. They will benefit from this too, If your property is in good order your tenants will be happy,
Below are some stats as mentioned above, these are from RP Data
If you have any queries or would like to transfer your rental property across to JPP Property Management, don’t hesitate to call 03 9523 1054 or email [email protected] Courtney or myself would be happy to chat to you about your investment.
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Despite property values dropping across the country in the first quarter of the year, rental yields are on the rise.
According to the latest RP Data figures, Hobart was the only capital to record a decline in rental growth.
Tim Lawless, research director at RP Data said detached housing was the big winner.
“While April’s values reduce across most capital cities, rents continued to show modest improvements. At the combined capital city level, the weekly rent on a detached house is up by 4.1 per cent over the year to April and unit rents are up by 3.7 per cent,” Mr Lawless said.
Growth in rents has been varied across the country with the largest increases in Perth where weekly rents have surged by more than 14 per cent over the year. Smaller rental increases were recorded across Sydney, Brisbane, Darwin and Canberra.
Rents in Melbourne and Adelaide were reasonably flat while Hobart went backwards by 3.9 per cent over the year.
According to RP Data, higher rents and lower home values are contributing to higher rental yields. The average capital city house is now returning a gross yield of 4.2 per cent, up from a low of 3.6 per cent just over a year ago.
Units, which typically provide a higher rental return, are providing a gross yield of 4.9 per cent, up from a low of 4.4 per cent.
Source: Rebonline.com.au