Perth rental market on the improve
The feel good news regarding Perth property is slowly but steadily building momentum as the Perth rental market shows positive signs.
REIWA are reporting Perth is now at its lowest rental vacancy rate since September 2015 which is very welcome news to all the property people in the CapitalQ Community.
Firstly it means a better chance of gaining, and then retaining, a good tenant for your property. Secondly, it means your rent should stop falling and may even be on the verge of starting to increase once again.
The December vacancy rate of 5.5 per cent compares very well to the 6.9 per cent rate in the September 2017 quarter, and the 6.4 per cent rate in the December 2016 quarter.
“The Perth rental market has improved across the board in recent times which has had a very positive effect on the vacancy rate,” concludes Hayden Groves, REIWA President.
Nevertheless, we encourage all our property investors, be it residential or commercial, to stay vigilant when it comes to managing your tenants.
If you have one, and they are a pretty good tenant, you want to keep them! AND you want to avoid a vacancy at almost any cost. Even if it means giving up a little sweetener on the rent to get them to recommit, including holding off on a rent rise even when the Perth rental market might suggest you could be charging more.
Just one week vacant, will eat up on average 40 weeks of a $10 per week rent increase! Add to that Letting Fees from your property manager (usually equivalent to two weeks rent) and the result of holding out for that extra $10 a week, could mean it take 120 weeks to break even (and that is IF you can find a new tenant within one week)!
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