McGrath’s Head of Property Management, provides some tips for tenants, with a focus on how you can increase your chances of securing the rental home you want.
Rents across Australia are rising and there is strong competition among tenants for rental homes, particularly in the capital cities.
So, I’ve asked McGrath’s Head of Property Management to provide some tips for tenants, with a focus on how you can increase your chances of securing the rental home you want.
But first, a bit of information on why the rental market is so tight today.
In short, it’s a combination of factors.
The biggest issue is a lack of supply of rental homes, partly due to falling investor activity since interest rates began rising, and a reduction in apartment development approvals.
On top of that, we have the return of migrants and international students to Australia, as well as more people returning to the cities after living further field during the pandemic.
Put all of that together and we’ve seen the fastest annual increase in rents ever recorded.
CoreLogic data shows an 11.7% increase in rents across the capital cities, with demand for apartments surging due to relative affordability and proximity to universities and CBDs.
This is particularly the case in Sydney and Melbourne where many of Australia’s best universities are located.
CoreLogic data shows this is where the strongest growth in rents is occurring.
Sydney apartment rents have risen almost 20% and Melbourne 15% over the past year.
The number of rental homes available across the capital cities is currently almost 40% below the five-year average, and 21% below last year’s level.
That’s why we’re routinely seeing long lines of tenants at rental inspections, and why vacancy rates are at or near record lows in most capital cities (bar Hobart and Canberra).
The regional rental markets are also tight, with rents still rising. However, demand is easing from peak levels during the pandemic when internal migration from the cities was high.
Here are 8 tips from the Head of Property Management for McGrath’s company-owned office network, Katherine Gaitanos, to help you secure the rental home you want.
The bottom line is be prepared, be proactive and ensure your applications are 100% complete.
The views expressed in this article are an opinion only and readers should rely on their independent advice in relation to such matters.
For more information including articles, checklists, guides and more visit McGrath’s Insights Centre.
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