RENTAL MARKET WRAP
As we move into the final quarter of 2024, the rental market is presenting a mixture of challenges and opportunities for property investors nationwide.
Below are some key insights into the conditions we are seeing to help you make informed decisions for your investment property.
Slower Growth, Rising Vacancy Rates
Our local market saw a 0.8% decline in rental prices over the September quarter, reflecting the nationwide trend of slowing rental growth. Vacancy rates remain high, demonstrating increased competition to secure tenants. If your property is vacant, this could be a good time to review your rental pricing or consider offering short-term incentives to attract prospective tenants.
Overseas Migration & Demand Slowdown
One factor behind softer demand in the rental market is the decline in overseas migration. National data shows a 19% drop in net migration compared to last year, easing some of the demand for rentals. The increased availability of properties has given tenants more choice, resulting in some properties taking longer to rent.
Opportunities for Landlords
With rental affordability driving changes in tenant behaviour, there continues to be a shift toward group or multigenerational living arrangements, signalling a rise in demand for larger properties or multi-bedroom homes.
Also offering flexible lease terms or enhancing your property’s appeal through minor renovations or improvements could boost your rental property’s competitiveness.
Talk to us about reviewing your property management strategy to ensure you're maximising tenant retention and minimising vacancy periods.
For rental properties in NSW
The Residential Tenancies Amendment (Prohibiting No Grounds Evictions) Bill will be introduced into parliament this month.
- No-fault or no-grounds evictions: will be banned for both periodic and fixed-term leases and landlords will have to meet one of several "commonsense and reasonable" thresholds for evicting tenants.
- Fee-free methods of paying rent: landlords and agencies must provide tenants with fee-free ways to pay their rent, such as bank transfer and the Commonwealth Government’s Centrepay.
- Pets: must be allowed unless there is a valid reason.
- Crackdown on fees: renters will no longer be charged for background checks when applying for a rental property.
The reforms will be some of the most significant in the NSW rental market in a decade and we will continue to provide you with updates as they come to hand.
Additionally, the NSW Government has announced Rent Check, a free online tool developed by the NSW Rental Commissioner, for renters and owners to access current data on rent prices for comparable properties in their suburb. Go to www.nsw.gov.au/rent-check for more.
For rental properties in the ACT
From 9th January 2025, every new lease signed in a unit complex will require a Section 119 Certificate. These certificates will need to be ordered from the strata management company, provided to the tenant, and will be valid for five years once issued.
The Real Estate Institute of the ACT is lobbying on behalf of landlords for clarity around what needs to be included on the certificate, how long it will take to get certificates from strata companies, the associated fee, or the exact date of enforcement. These details will need to be signed off by the incoming Minister after the upcoming ACT election.
Home Swimming Pool Safety Reforms released in May continue to affect the lease and sale of homes. Information on the disclosure requirements can be found here.
Finally, the consultation period on minimum standards for rental properties and occupancy law reform closed on 2nd September 2024. A Listening Report sharing the feedback received is expected to be published in late 2024. While some of the proposed changes are basic (like having access to a toilet), others could have a large impact (such as minimum energy efficiency ratings on appliances and full-weather sealing).
Watch this space for more information on these changes.
Please get in touch
As always, if you have any questions or need assistance with your property management strategies, please don’t hesitate to reach out to your Property Manager or your local Blackshaw Real Estate office.
For any further information or queries please contact your Blackshaw Property Manager.
