4.5 % Vacancy Rate in Perth atm

Had a chat with a PM in the Morley area and she is saying that there is a 4.5% Vacancy Rate in Perth. The normal is 2.5%. A while ago it was at 0%.


What effects these vacancy rates? Is it perhaps because more fhb bought their own property in the last 6 months and moved out of their rented place that the vacancy rate went up? Could that be an impact?


I asked her about the demand for 1 bed with communal laundry and she was saying that they are in demand and that usually they would rent for $210.


I'm thinking if i do buy this property that I'd start off advertising at $210 per week and if its not tenanted in 3 weeks then drop it down to $200.

What do you think?

The lower the vacancy rate is the better isnt it? Means more people competing for the same property pushing the rental up?

Higher vacancy rate.... tenants have more properties to choose form. Less tenants looking for property to live in which means landlords must decrease their rental?

Is that right??


thanks
 
I dont know where your PM got her info from but all news is currently saying Perth is experiencing a housing crisis again with 220 people arriving in Perth every day.

Perhaps Morley is an anomaly but my property in Seville Grove i am currently getting ready to tenant out and my PM is trying to push me out the door as quickly as possible. Maybe Seville Grove is the anomaly :p
 
Had a chat with a PM in the Morley area and she is saying that there is a 4.5% Vacancy Rate in Perth. The normal is 2.5%. A while ago it was at 0%.
NOT according to sqmresearch, it is 1.8% in Morley.
http://www.sqmresearch.com.au/graphs/graph_vacancy.php?mode=/&postcode=6062&t=1

What effects these vacancy rates? Is it perhaps because more fhb bought their own property in the last 6 months and moved out of their rented place that the vacancy rate went up?
A little bit I suspect

Could that be an impact?
It would have to be at least some of it.


I asked her about the demand for 1 bed with communal laundry and she was saying that they are in demand and that usually they would rent for $210. I'm thinking if i do buy this property that I'd start off advertising at $210 per week and if its not tenanted in 3 weeks then drop it down to $200.What do you think?
Be guided by your PM - he or she has their finger on the pulse of the market every day. That's what you hire them for.

The lower the vacancy rate is the better isnt it?
Not for tenants. Yes for LLs.

Means more people competing for the same property pushing the rental up?
Yes

Higher vacancy rate.... tenants have more properties to choose form. Less tenants looking for property to live in which means landlords must decrease their rental?
Simple supply & demand equation.
 
cool yep i think im getting the picture on how things work. :)



Just watched today tonight two minutes ago and they were saying that its not bad being a tenant atm. A lot better than 18 months ago in Perth when they all had to fight for the same property.

They were saying that when interest rates start to go up so will rental incomes. Talked a bit about Gorgon. Anyone else see it? The guy from australian property monitors was on.
 
I was talking to a PM in Bassendean and it's similiar. I've noticed what would have rented for about $360 6 months ago is now renting for about $340. I'm expecting it to be back to about $360 in 3 - 6 months though. Just my opinion.

I've noticed heaps more properties are avail for rent ATM.
 
Hasn't the amount of properties available for sale dropped as well?

We've recently put our rents up across the board
 
cool yep i think im getting the picture on how things work. :)

Just watched today tonight two minutes ago and they were saying that its not bad being a tenant atm. A lot better than 18 months ago in Perth when they all had to fight for the same property.

They were saying that when interest rates start to go up so will rental incomes. Talked a bit about Gorgon. Anyone else see it? The guy from australian property monitors was on.

Honestly, I wouldn't believe anything I heard on Today Tonight or A Current Affair. It's utter crap.
 
I do not hink today tonight is all farce. My 5 IPs were all sold to FHBs. Obviously, they had to vacate from their lease. That is why vacancy rate is up.
 
Perth...

I have a few properties in Perth and my thoughts are...

If the vacancy rate is up, then I would put the property on the market at a lower rental amount (say $10 less per week). That way you get someone in to rent and the great thing about Perth is you can increase your rents every 6 months, just send the tenant a letter after 4 months giving them 60 days notice that you are increasing the rent.

If you wait 3 weeks to get $210 (you are down $630 - assuming it is empty), if you rent it at $200 straight off, you are down $260 over 6 months...still better to take less rent and have it tenanted IMHO....

Just my thoughts...

cheers
Propertygirl
 
and the great thing about Perth is you can increase your rents every 6 months, just send the tenant a letter after 4 months giving them 60 days notice that you are increasing the rent.

cheers
Propertygirl


Can you increase the rent after 6 months even if the tenant is on a 12 month lease?
 
Can you increase the rent after 6 months even if the tenant is on a 12 month lease?

Yes as Prop says Kim - but be careful here. You can either:

a) State a set amount increase at the 6 mth mark
b) Have a clause in the lease stating that you may increase the rent at the 6 month mark.

I'd go with option a. Even if you've gone a bit low the tenants are less likely to kick up a stink as they were aware at the time of lease signing.

I'll find that clause on one of my current leases for option b) though if you want it, as that's what I did. (IMHO it was the wrong move though).

By the way Kim you asked elsewhere (I think) for opinions on HouseSmart as a PM? First impressions are excellent, very professional and focussed on us (for a change!)
 
I do not hink today tonight is all farce. My 5 IPs were all sold to FHBs. Obviously, they had to vacate from their lease. That is why vacancy rate is up.

Yes but did your IP's have tenants in them?

If yes then that's 5 tenants out, 5 tenants in- no change in the number of tenants looking for rentals. Vacancy rate stays the same (unless your buyers were living at home with mum, then the vacancy rate actually decreases).
 
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