The Rental Market - Let’s not divide property owners and tenants, let’s look for balance solutions says Chantelle Collin, Head of Property Management Bresic Whitney.
Let’s unpack some of the significant events to have taken place in the rental market over the last few months, starting with the announcement that Trina Jones had been appointed the state’s first Rental Commissioner. Trina will make an important contribution to what is rightly and widely acknowledged as an incredibly difficult, even impossible, environment for many people looking to secure housing.
Recent weeks have also confirmed that Chris Minns is seeking to progress amends to residential tenancy laws through the recent release of a consultation paper. This includes the formalisation of no-grounds tenancy terminations, portable rental bonds, changes to pet allowances and more. This week also highlighted the Federal Government’s commitment to national housing, which includes the “Better Deal for Renters” Plan.
These are factors that will play a critical role in shaping and defining the reality of leasing, and owning, an investment property in NSW. All things considered, there is change ahead and we don’t quite know to what level or what the full implications will be.
Spring and Summer will likely once again reveal the full force of renter demand and underlying lack of supply after a seasonal Winter lull. At the same time, we can see a higher-than-usual number of investors exiting the market, brought on by the record-high interest rates and cost of living. CoreLogic data shows a recent 36.3% increase in Sydney with former investment property listings.
How can we, as an industry, contribute to our market in a way that is constructive and will have a positive impact? And from a very real, important perspective, what does a potential, significant decrease in managed portfolios mean for some real estate businesses’ viability.
I certainly do not have all the answers. However, what I do know is that a healthy market is one that can comfortably accommodate and fulfil the needs and wants of both tenants and property owners. It won’t always be a perfect equilibrium; however these two groups should not be pitted against one another as opposing forces. An overwhelming number of our clients at BresicWhitney, for example, recognise the benefits of keeping a trusted long-term tenant, who cares for the property, over re-signing a new tenant who may be willing to pay a higher rent. Yet for some owners (just as it does tenants) there may come a point where a situation becomes no longer financially viable. That’s when these hard, sometimes life-altering decisions need to be and are being made – be it due to unaffordable rent or repayments.
As undersupply is at the crux of the current rental crisis, if investors continue to exit the market at the current rate, it will further reduce the viability of securing a home for many tenants. Long-term private investment, in a way that is accessible and attractive for owners, is key in ensuring NSW has a healthy and balanced rental market. Just as amplifying the voices and rights of tenants are in this.
As this public debate continues to unfold over the coming weeks and months, I encourage us all to stay mindful of the bigger picture and not focus on dividing owners and tenants, but on solutions that bring them together. Solutions that work to better the security, viability and reality for property owners and tenants. Solutions that will lead to better long-term outcomes.
By Chantelle Collin, Head of Property Management Bresic Whitney