By Joel Davis, Image Property
We’re rocketing towards the end of 2020, that annus horribilis that we’re all anxious to put into the rear-view mirror, and we’ll soon begin a new year, which, in rental market terms, is the high season.
The new year is when people are moving for work reasons, study reasons, and “fresh start” personal reasons.
It’s historically the busiest period for property managers who are putting in long days vetting applicants on behalf of their valued clients, applying an experienced eye to the applications and ensuring only the highest quality tenants are invited to move in.
Brisbane’s rental market is tight, with a vacancy rate sitting at a whippet-thin 2.5 per cent and the Sunshine Coast is even tighter, at a wafer-thin 1.5 per cent.
This means that just 2.5 per cent and 1.5 per cent respectively of the total rental stock in each market is available for rent, which are tight market conditions with demand generally outstripping supply.
At this stage, all the signs point to more of the same for 2021 because without a strong influx of supply (a massive building program that will bring investors to the market to buy rental properties) the rental market will continue to be under pressure.
The high level of demand means landlords will face an increased number of applicants for their property.
In addition, with the steady rise of southerners relocating into our relatively low-COVID, low-restriction state, the rental market in the southeast corner will face even more pressure.
Spotting a diamond in a box of baubles
With all those potential tenants clamouring for your property, how do you find the best tenant for your property?
Finding that one perfect tenant might feel a bit like hunting for a needle in the world’s largest stack of hay, but it is also a blessing in disguise.
For the savvy landlord, the rental season is a golden window of opportunity that presents the chance to find that perfect tenant, the person (or people) who will look after your property as though it was their own, pay the rent on time, and generally be trusted to look after your investment.
It helps to understand what you’re looking for in a tenant.
If, for example, you’re tired of tenants moving on after just 12 months, then perhaps look for the tenant who has a history of long-term rental periods behind them.
This tenant may not be the highest-income earner, or the one prepared to pay the most rent, but it’s all about understanding what is most important to you.
Partner with an expert
Of course, with an opportunity that only comes around once a year, it’s important not to squander it.
If you’re busy, with a lot of work or social commitments in the new year then it would be well worth considering a property manager, who is someone who can take all of the hassle out of the process for you.
They will assess the many, many applications, weed out the unqualified, and present you with just a few of the highly desirable candidates for your ultimate selection.
This process reduces the risk of choosing a bad tenant, reduces the demands on your time, and reduces the stress on you as the landlord.
The cost of a good property manager is offset by the money saved in other areas of property management and remember the cost of fees are typically tax deductible.
Property managers have a ready suite of trades at their fingertips, saving you time finding someone to fix that broken cupboard door.
They also have an expert understanding of all the relevant legislation that applies to your property – do you?
Most importantly, an expert property management team will ensure that you don’t waste the opportunity of the rental busy season and will help you find the perfect tenant for your property.