According to REIWA’s latest stats, Perth saw a decrease in the average time it took to lease a property falling to just 39 days, the shortest time its been since March 2015 demonstrating a steady increase in rental demand.
As supply gradually begins to tighten, we’re expecting to see an increase in rental returns as investors can begin to list their properties at higher prices. So far, we’ve already witnessed record rent increases in numerous Perth suburbs as a consequence of this including; Ocean Reef, Willetton, Applecross, Cottesloe, and Mount Lawley. According to REIWA data, the biggest price increase was experienced in East Fremantle where the average rent rose by $50 to $570 per week. Take a look at our latest Perth property market report for more insights on the rental market.
With fewer available rentals and competition running higher among prospective tenants now is a great time to enter the Perth rental market and get a great rental return for your investment.
What Perth’s Rental Market Has Going For it?
As previously mentioned, the reduced supply of rental properties has been driving a force behind the Perth rental market’s upward trajectory and consistent demand. According to REIWA, the number of available listings fell by 18% in December 2019 compared to that of the year before. That number is currently only sitting at 5737 available properties.
Perth is also experiencing a high level of affordability in contrast to that of Sydney and Melbourne making it an attractive option for property investors and buyers living interstate looking for value in the market.
There’s also been a steady increase in activity in the mining sector over recent months which has provided a much needed boost in employment numbers. As employment improves for WA mining, this demonstrates very good signs for the WA economy stimulating an increase in population growth and property demand.
All very great signs that the conditions in Perth’s rental market are primed for investors to receive a great rental yield on their investments.
How To Make The Most Of The Perth Rental Market
Coming off a strong rental market in 2019, REIWA president Damian Collins has predicted that WA should experience continued momemtum throughout 2020 with consistent demand in line with improving population growth and reduced supply as key drivers for the improvement. The timing to get into the market couldn’t be any better for property investors as Perth sits as one of the best value markets in Australia.
As we experience a big market shift in WA, we are seeing a lot more long-term renting as a lifestyle choice which presents a golden opportunity for new and existing investors to consider the variety of factors that will help maximise your property’s rental return in 2020.
The first thing to understand is that like attracts like. Purchasing a good quality property that presents well, offers excellent fittings and fixtures, and all the benefits of a lifestyle rich location also attract good quality tenants, and also means you can maximise your return from that tenant too. With these ingredients, this will prevent tenants from being so transient. If they’re happy with their surroundings and quality of the property, there’s often no reason for them to move – this of course is great for you as an investor.
Ensuring Your Rental Property Stands Out
If you already have the great area, we recommend paying attention to the primary things that are going to make your property stand out to quality tenants and increase your rental yield. This would typically include:
- Renovate to enhance the best features of your property and appeal to the emotional needs of tenants seeking a ‘home’.
- Sell the sizzle with a strong marketing strategy! In a competitive market, it’s important that you make your property appeal to your ideal tenants “dream”. Nothing does this better than good quality photos showcasing your home in it’s best light and painting the picture for those tenants who will appreciate the detail in your property. Tapping into the emotional appeal for your tenants will also help you boost your rental price.
- You might also want to consider staging your property to help tenants visualise your property fully furnished while demonstrating how the spaces can be best utilised.
- Increase your property’s value, rental yield potential and tenant pool with a furnished rental property. A well furnished apartment can rent out for up to 75% more than unfurnished apartments depending on the location. The added bonus, the cost of furnishing your property is often tax deductible if the furniture is brand new.
You can read more about our tips to increase your property’s rental value here.
Attracting and Retaining Quality Tenants
Even if your property should “sell itself” often your property manager can let you down by not being proactive and stringent enough in finding the most suitable tenant and/or looking after your existing tenants. They also might be lacking in experience or knowledge of your local area meaning they struggle to promote the appeal of your property. With Perth experiencing strong rental market conditions and indicators for growth throughout 2020, it’s never been more important to ensure your property manager is helping you get the most out of your property.
Here at Benchmark, our specialists focus 100% on property management which means the quality of our people, processes and standards centre around getting the most out of your property. With Perth’s rental market seeing sharp vacancy rate declines since 2017, our primary focuses have been to improve our leasing processes, driving and maintaining strong returns, ensure high quality marketing and, going above and beyond to look after you and your tenants.
Over the past 12 months alone, we have been able to achieve the following results for some of our clients:
- 3×1 home in Heathridge – leased $10 above median rent price.
- 1×1 apartment in West Leederville – leased $155 above median rent price.
- 3×1 home in Balcatta – leased $50 above median rent price.
- 4×2 home in Ocean Reef – leased $110 above median rent price.
- 4×2 home in Alkimos – leased $20 above median rent price.
At current, our rental statistics are up to 65% better than Perth’s averages! Our average days to rent are currently sitting at 19.8 days which is 45.18% below Perth’s average of 37.3 days (January 2020) and our properties are sitting at an average of 8.6 days vacant, that’s 65.18% lower than Perth’s average of 24.7 days (January 2020).
If you feel like your property manager isn’t putting you in the right position to get the most out of Perth’s strong rental market, then you might want to consider changing property managers.
Changing property managers may seem like hard work but at Benchmark Specialist Property Managers we make the process simple and easy. We can collect all the relevant documents and correspond with your existing property manager for a stress-free changeover.
With Benchmark, you’ll be relying on a committed team of specialist property managers who are well versed in bringing out in the best in your property. We also understand how important your financial goals are and how essential it is to find quality tenants at the right price to achieve strong rental returns.
Where To From Here?
As 2020 progresses, all signs are pointing to Perth’s rental market trend will continuing to strengthen. With vacancy rates on the decline and median rent prices steadily increasing it’s a great time to enter the market or reposition your existing property.
If you’re looking for an experienced Perth property manager or perhaps considering changing property managers to maximise your rental return contact us today and our friendly team will be in contact with you shortly.