Property Management Insight for September 2022
We have had a busy month in the Property Management Division, with 13 properties leased this month! The rent range for these leased properties has been between $325 p/w and $570 p/w and they consisted of apartments, townhouses and a home on a large block. The month of September has brought in a total of 62 applications on our listed properties, which has been a great result for our owners with many having multiple quality applications to consider. Our most recent report showed a portfolio vacancy rate of 0.88%, which is in line with statistics from REIWA, which has shown consecutive vacancy rates of 1% or lower over the past few months.
To give a bit of an insight into the leasing process, we have an electronic system linked in with the real estate listing sites, where prospective tenants can register their interest on a property, as well as book themselves into a home viewing time. This allows for easy registration for prospective tenants at any time of the night or day when they see the property advertisement! From there, we hold a home viewing and we would estimate around half of the registered attendees will attend from the online list. From those that attend, we estimate around half will apply. Viewings are important as they provide a chance for the agents to meet the prospective applicants in person, and for the prospective tenants to ascertain the suitability of the rental for their needs and help them make a decision on whether to apply.
In our experience, we are finding most prospective tenants will apply at the asking price, and only a small number of applicants are offering more. We also do find that prospective tenants are actively applying for multiple properties at one time, and this does mean that a prospective tenant may be awaiting the outcome of multiple applications. This is often a necessity for renters in the current market, with many having a short timeframe to find a new property before their lease expires. We are also seeing a lot of properties going to the sales market or owners are moving back into the property, which means good quality tenants are on the search for a new rental as quickly as possible.
Perth is a great place to live for many reasons, but one important factor that puts Perth at centre stage is that it has proven to be the most affordable city to live in around Australia. This data is based on the Real Estate Institute of Australia’s Real Estate Market Facts report, which outlines that both houses and units in Perth are the cheapest of any capital city to purchase! In a time where the cost of living is going up across the board, Perth’s affordability will hopefully entice more people to make the move to the West and create incentive for investment into property in WA. Furthermore, West Aussies can rest assured that yes, life is better in the West!
Warm Regards,