The Market

As a  property manager it is our profession to report the market conditions and adjust rental campaigns accordingly which often involves re-aligning price to be competitive with other properties in the market as well as other strategies to ensure your property is let as soon as possible.

The rental market is tough for landlords at the moment. There is a oversupply of properties on the market which is giving tenants the opportunity to apply for multiple properties, finding out which they are approved for and then selecting the one that provides the most value to them. This is the reason for many properties staying on the market for a longer period of time then usual.

Its no wonder that there are more rental properties on the market with sale prices also at a low, it allows more people to afford investments properties. It is also an optimal time for first home owners. Feedback from some property managers is that there are quite a few lease breaks that have been the result of people buying.

With many properties on the market, tenants have the chance to compare; largely price is a factor so to have your property let as soon as possible it’s important to listen to the advice from your property manager on what price to set. Although it may not be the return you are accustomed to we are here to report on the market and unfortunately the market determines where prices are.

A trend that has also been occurring is tenants applying at lower prices, sometimes they have seen that the property has been on the market for a while and feel as though the landlord would settle on a lower price. Other times they may apply at a price they feel appropriate based on the multiple properties they have seen. This supports the fact the market is determining where prices should be even if the properties are not priced accordingly.

Therefore don’t cut corners, even though tenants are withdrawing their applications after deciding on another property, ensure you carry out the appropriate background checks with references. It can be difficult to check references in a quick time frame but it is vital to do so.

The best way to stay competitive in this market is to ensure your property is priced right from the start but also understanding that the price may need to be lowered depending on the interest you receive. Rely on your property manager to have your best interest in mind and trust that they understand the market and are purely relaying to you the current market conditions.