Brisbane Rental Market- Timing lease agreements

Hello,

I posted late last year about the Brisbane rental market and how we were finding it quite soft. It is traditionally weak in most states in December but we find Brisbane especially slow leading into Christmas. We had found the rental market had softened in the proceeding 6-9 months anyway so added to the traditional quiet times we ended up having through the Christmas -New Year period 8 vacancies and knowing we had 6 leases expiring in Mid Jan.

Pleased to report the enquiry levels have been very strong and all 14 properties have been re-let with several having a 5-10% rental increase, we now only have one property vacant which was listed yesterday and not available until end of Feb.

It will be interesting to see if this becomes a trend or is just a seasonal occurrence, the activity does seem stronger than normal so time will tell. We were not expecting a significant upturn in the rental market so it will be interesting to see how it plays out.

We always try and have leases end in mid Jan and avoid December if at all possible, sometimes it is not possible but should be achieved whenever it can be. Landlords who had vacating tenants in Jan had absolutely minimal gap and in most cases received a rental increase, a much better result than those
landlords with leases ending in December.

Regards

NPB
 
Are these your properties, or do you manage them?

I always end leases mid to end of January as this seems to be the best time to find new tenants. I'm in the middle of negotiating leases now, but find that rents are soft and when I look on re.com to compare "apples with apples" I am rather hoping my tenants don't compare too closely, or we could lose them.

Still, we have increased rents by $10 to $15 and had these increases accepted. One was challenged (tried for $15 and settled for extra $10). I still think this particular rent is low, but with a development planned for this house, we don't want the tenant to leave or we face trying to find someone to rent for a very short term.

This is inner south-east Brisbane area. I don't know if others are finding rents to be soft?
 
Raised rent in Sunnybank and Carina recently by $10 per week, other BN properties flat with one at same rent for last 3years, I could increase this one but tenants are excellent and there seems to be a bit of stock around the same level or slightly cheaper. Never had any vacancies in BN for more than a day (fingers crossed)
 
Are these your properties, or do you manage them?

Hi Wylie,

They are properties we manage for clients.

We were surprised how quickly they all rented and the increases achieved given how soft the market was at the end of last year. Will be interesting to see if that was just a seasonal jump or a general market improvement

Regards
 
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