Rental Market News Oct 16 – Oct 23 2020

Jason Mudford General Manager OBrien Real Estate

It’s “First in best dressed”

Hi Guys, it’s Jason Mudford from OBrien Real Estate with another edition of the Property News for October 2020 where real estate information is on the house.

The big news this week is commercial real estate inspections can now re-commence which is great for our commercial landlords and renters. And of course, on-site auctions can now return to Metro-Melbourne with up to 10 bidders allowed.

Last week we commented on the vacancy rate in rental markets particularly around Melbourne CBD and universities being mostly affected by the low numbers of overseas visitors to Victoria. But relatively speaking our suburbs are unscathed by this trend. Although Covid-19 is an event there is likely to be an economic recovery trend for the next 12 to 18 months until a vaccine is found, so today we wanted to share with landlords the 3 main things you should focus on if you are leasing in today’s market.

Number 1 is Price – Ensure you are in the market and not just on the market and by that, I mean ensure your home is priced right so that your home is leased in the quickest amount of time. Nationally the average weekly rental for a house is now $515 a week, holding out for $10 extra a week is all but evaporated in waiting on the market for one extra week, if it’s 2 or 3 weeks your waiting it starts to add up in the $1,000’s. Remember each week your property is vacant costs you 2% of your annual return.

Number 2 is the home Safe and Fit for purpose? – Ensuring your home is in good working order will not only help you attract a tenant quicker; your tenant will pay better and stay longer if the product your offer is in order. And it gives you the landlord that peace of mind. Testing electrical and gas appliances should be a prerequisite, but consider an electrical safety check if the home is older and hasn’t had one before. Ensuring adequate security exists like secure fencing. Locks on doors and windows should be a given check but consider security doors, a ring video doorbell or even an integrated security system. With the warmer blustery weather upon us ensure large trees are checked and pools are in compliance.

Number 3 is Presentation of the Home – Washing and cleaning is one thing, but replacing some old worn carpet and replacing tired curtains will not only increase your rental payments, but it will also get you leased to a quality secure tenant faster. Thoroughly review your home, consider cosmetic improvements that don’t cost the world and adds modernisation. Painting inside is always great, but also consider little things like door handles and knobs, showerheads, taps, toilet seat and basins. And outside consider your storage sheds, your washing lines and paving areas for outdoor entertaining.

Remember people are staying at home more than ever, whether that is working or playing. So even consider that study nook or home office. People will be moving from the city to the suburbs due to the ability to work from home and they will also be taking items out of storage with them, so consider your storage capacity too.

In closing, Victorians can stand proud of their State, for everything that has been achieved this year under the very trying conditions. And it’s timely that we are seeing many sporting achievements in from Victorians, the Vixens, the Melbourne Storm and the 2 Victorian clubs Geelong and Richmond in this week’s grand final. Enjoy your Friday off and the long weekend.

That’s all for this week, I’m Jason Mudford and remember the information provided is of a general nature you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.

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