Monday, July 08, 2013

Market Wrap Up - June Quarter 2013

In South Australia, the median weekly rent of $325 remained steady since the beginning of the year. The average turn round time on properties for the industry is 27 days. Toop&Toop’s vacancy rates have been sitting around 14-20 days well under the average.

Consumers demand A Better Industry
Consumers are becoming increasingly savvy about their rights and demanding in terms of their expectation on service levels.

Specialist knowledge of local areas and a depth of understanding of maintenance issues is the necessary to meet consumer needs.

Residential Tenancy Legislation Changes
The burden on owners and agencies has increased with the new legislation. New laws around hanging abandoned goods, the decreased time frames for inspections and increased privacy requirements.
One bonus is that documentation regarding a tenancy can now be emailed rather than snail mailed which will save time and prevents claims of documentation not being received.

As a private landlord it is becoming a logistical minefield adhering to these new laws and the requirement for all documentation to be submitted and processed on time.

Delays in actioning maintenance
Tenants believe that their repairs and maintenance issues are not being addressed in a timely manner once reported.

Over 47 per cent on a national survey responded that they experienced significant delays in their requests being actioned.  From an agents perspective there is always a question of balancing between what is classified as landlord or tenant responsibility.

It also depends on the rent and the age and condition of the property when it was tenanted. A $210 per week property is not going to be in the same condition as a $410 per week property. 

There is however the safety issues for example  any electrical repairs or what is considered an emergency such as blocked drains or flooding.

An agent is able to act as the broker and with their experience can successfully navigate between both parties rather then have the tenant and landlord at opposing ends in terms of view point of who should do and pay for what.

It is important that all maintenance is followed up and addressed even if it is to inform the tenant that they are responsible.

With tighter budgets landlords have become less willing to approve repairs as economic times have put a squeeze on their returns. The influx of sales properties has also meant the rents have remained the same and in some case declined. This has allowed tenants to be fussier and take preference over homes that are in a better condition or have upgraded facilities.

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