Real Estate Information

Real Estate Information

Property Management (Balancing Act : How good tenants can keep costs down)

Since the end of the emergency rental moratorium in late March, REIWA has reported that Perth’s median rental price has increased to $420 a month at the end of May.

As a landlord, adjusting your rents can be a balancing act between meeting market conditions and retaining good tenants who value and care for your property.

If you currently have a long-term tenant in your property, the benefits of keeping them can often outweigh any increased rental income.

Here are three reasons why it can pay to keep good tenants.

  1. They want to stay and will care for your property

Good tenants will care for your home as if it were their own, ensuring no damage is done and keeping the property neat and well maintained, which can help minimize the cost of any ongoing maintenance and repairs.

  1. No vacancy periods

The current rental market in WA is incredibly tight and the vacancy rate has hovered below 1% for a long time now. Because of this, you may think that getting a new tenant will happen overnight. However, this isn’t always the case, and often – even in such a tight rental market – there will be a period where no one is in your rental property and you will be losing money.

It is also important to consider what could happen down the track. While the rental market is tight now, it will likely correct itself in in the medium-term as more rental properties come on stream to help satisfy demand. If you’ve opted to re-lease the property at a higher price, this new tenant may choose to move on once their lease period is up. This could mean you will be facing a longer vacancy period in the not-too-distant future. It is important for landlords to consider both the immediate and also long-term impact that bringing in a new tenant may have.

  1. No costs associated with re-leasing

In addition to considering the potential for lost income while your property sits vacant, you also need to consider the costs associated with re-leasing your property.

If your property is managed by a professional property manager, you will need to consider their letting fees, which are often equivalent to one to three weeks of rent. You will also need to cover the marketing costs required to help promote your property (including photography and online advertising). All of these processes will cost you money directly from your pocket, and while you will be benefitting from a higher rental income, it is important to understand how much these initial costs can eat into your extra returns.

While rents are increasing, our property managers are also beginning to witness a rise in tenant expectations. Because prospective tenants are being asked to pay higher prices, they are beginning to expect properties with more features, as well as ones that have been better maintained.  

The best of both worlds – raising the rent and keeping the tenants?

As we’ve outlined above, sometimes it can make sense to keep the current tenants that you have, but that doesn’t mean that you need to miss out on increased rent altogether.

A good property manager will be able to work with your tenants and can come up with solutions that suit both parties, and one common practice is to incorporate rental increase clauses into lease agreements.

Instead of dramatically increasing the asking rental price upfront, rental increase clauses allow for rental increases after six months, something that can benefit both the landlord and the tenant while keeping your property in line with changing market conditions. Landlords will benefit from the increased rental returns that align with movements in the broader market, and tenants will be able to remain in a property that they are happy with while having time to prepare for the increase in rental payments.

REIWA (15/07/2021)


REIWA (15/06/2021)


7 Common Home Selling mistake

  • Setting a PRICE without CAREFUL RESEARCH
  • PRICING too high from the start
  • Using an ODD listing PRICE
  • OVERPRICING because you’re in no RUSH to SELL
  • Getting EMOTIONALLY involved
  • Expecting the HOUSE to sell ITSELF
  • Trying to sell on your OWN

-Updated 30/05/2021


Perth’s median house price had increased to $508,000 for the first time since December 2018, according to the latest reiwa.com data.

“The Perth property market continued its strong recovery in April. It’s a testament to the strength of our local market that even with the Easter and Anzac public holidays, as well as another lockdown during the month, that prices continue to rise,” Mr Collins said.

Perth Rental Market

Listings for rent increased 2.5 per cent during April, with 2,731 properties available for rent on reiwa.com at the end of the month.

“This is an encouraging sign and only the third time in the last 12 months that we have seen listings for rent increase in Perth. Now that the rental moratorium is over, it appears investors are starting to return to the market.
“Although there is still a long way to go, this is a positive trend and one we hope will gather more momentum in the coming months.”

REIWA (15/05/2021)


TRICKS & TIPS FOR PETS OWNERS

  • Rub cords with wedge of lemon
  • Stop Cats from scratching furniture
  • Spray mixture of 1 cup of water, ¼ teaspoon cinnamon & ¼ teaspoon of cayenne pepper
  • Pacify chewing puppy
  • Oil of cloves, wipe it on the legs of anything wooden
  • Getting rid of fleas naturally
  • Swim in sea

Updated (29/04/21)


WA house prices tipped to increase 15% in 2021

There are a number of factors contributing to the strong price growth and expect to continue to see this year.

  • WA is still the most affordable state, median house sale price is $495,000, which is down from the peak of $550,000 in 2014.
  • We hit the bottom of the market around June 2020, and buyers are now eager to get into the market taking advantage of the record low interest rates.
  • There is also a fundamental imbalance between supply and demand in the sales market right now.
  • When you factor all these components in, it is a PERFECT STORM for higher-than-expected house price growth this year.

REIWA (15/04/2021)