Rents Falling!

I'm not sure what the official stats are showing now...but my gut feeling is that rents may well decline this year, particularly in areas that experienced rental booms last year.

The one I dropped from $260 to $250 was rented at $190/week 15 mths ago (no work done to it in between), so overall it's not too bad.
 
I think it depends on location, demographic type, price relative to medium rents in the area.

I invest solely in melbournes residential CBD market. This area has a heavy concentration of wealthy overseas students. If anything their ability to pay higher rent has increased due to the depreciation of the AU$. To many the location of the property relative to public transport, amenities and place of study is more important than the rent.
 
Hi there,

Is there any anecdotal evidence out there amongst landlords that rents may be plateuing or even falling...broadly speaking?

Thanks.

Haven't followed this thread too closely, but thought I'd give you my view from my corner;

Talked to a new PM for two of our properties out west (W.A) a few days ago.

It turns out that one of the properties, which is currently at $285 p/w should be at at least $320 p/w depending on the interior condition, and maybe up to around $350 p/w. Yippee!! Mine will be at the bottom end of the scale for sure, as I'm positive the tenants have not done the right thing with the upkeep.

So much for the previous PM doing their job correctly, but more to the point; the rents aint goin' backwards boys and girls!!
 
I agree. My property at Trinity Beach (20mins north of Cairns) has not experienced the same degree of rental demand that my Mount Eliza and Frankston properties have during the same period. All boils down to Supply and Demand, high concentration of recent large scale development at Trinity beach over preceding 2 years has led to increased supply. However look at the cyclical nature and that means an increase in infrastructure, population growth and demand. Wait and see with this one.
Mt Eliza and Frankston show no signs at all of slowing in terms of rental growth. $30 increase p/w 3 months ago on Mount Eliza and it is now way too cheap by about $50pw for comparable properties (agent says average time on market for listed property for rent in Mount Eliza is 3-5 days so demand is currently nothing I have seen before) whilst Frankston is still strong. If you have quality, I have found you attract good tenants and very rarely have vacancies. Cheers.
 
My Western Sydney ones are still rising, despite there being a lot of FHBs out there purchasing the cheapies. It's all good.
 
I have tenants vacating in IP (Northcote 2 br apartment), currently paying $320pw. Advertised at $360pw, might be a bit high. We'll see how it goes.

I've got one in Northcote too, let us know what happens.

Update: Rented for $360pw, new tenant moves in Friday. Vacancy of 7 days.

Good result, except for a small matter of maintenance which will need to go to Tenancy tribunal for, but all's in order, and shouldn't be an issue. (Hopefully)
 
Update: Rented for $360pw, new tenant moves in Friday. Vacancy of 7 days.

Good result, except for a small matter of maintenance which will need to go to Tenancy tribunal for, but all's in order, and shouldn't be an issue. (Hopefully)

Good stuff.
 
Update: Rented for $360pw, new tenant moves in Friday. Vacancy of 7 days.

Good result, except for a small matter of maintenance which will need to go to Tenancy tribunal for, but all's in order, and shouldn't be an issue. (Hopefully)

Update on the update. Tenant that was moving in on Friday now can't until Sat week. Other applicant wants to move in on Tuesday and has offered $370. So vacancy is going to be 11 days not 7, but a better than expected increase of 15%, instead of 12.5%.

As a side note, it is actually the vacancy days when a tenant moves out, that is a key measure of the PM's efficiency IMO. A few extra weeks vacancy blows out any increase in rent.
 
I have to agree with this. The house next door was empty for about six weeks recently with one open for inspection lasting 15 minutes that I was aware of. The PM doesn't care because it is not his rent that is no longer rolling in. Made me awfully glad that we find our own tenants because we can move much more quickly than any PM, because we don't have 207 other things to do that day as well.
 
Mt Eliza and Frankston show no signs at all of slowing in terms of rental growth. $30 increase p/w 3 months ago on Mount Eliza and it is now way too cheap by about $50pw for comparable properties (agent says average time on market for listed property for rent in Mount Eliza is 3-5 days so demand is currently nothing I have seen before) whilst Frankston is still strong. If you have quality, I have found you attract good tenants and very rarely have vacancies. Cheers.
Other side of the coin on this one. We have had a vacancy in Mt Eliza for 3 months and have reduced the rental $25 over the period. Comparable market value with others in the area.

Basic house that we have just spent circa $20,000 renovating with new kitchen, bathroom, carpets, tiles etc beachside on a low maintenance 1600+m2 block with views over the valley and 2 Klms to the village.
 
Our rents are not falling at all - quite the opposite actually.

Last 6 months rents across our portfolio annualised have increased $6,000.

Since January last year they've increased $21,000 p/a.

With yield increases like that and interest rates dropping, we cant complain! :)
 
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But doesn't it annoy you when you have to keep updating your ITWV's Rixter ?? ;);)

And perhaps start to pay income tax on all that positive cashflow ?? :)
 
But doesn't it annoy you when you have to keep updating your ITWV's Rixter ?? ;);)

And perhaps start to pay income tax on all that positive cashflow ?? :)

I've found a way to kill 2 birds with one stone - buy another IP! :)

Bit of a shame that - having to acquire more IP's and increase your wealth even further in order to reduce your taxes back to zero and below :D
 
This is our second PM over the last 7 years, and she appears to be on the ball, much more so than the first agency. Perhaps it is time to sell!:confused:
3 mths is a loong time. Unless there is no rental demand at all in Mt Eliza it's only ever 2 problems with property:
Price or Marketing. Can you post a link to your ad? PM me if you'd prefer. I also live in the area.
 
3 mths is a loong time. Unless there is no rental demand at all in Mt Eliza it's only ever 2 problems with property:
Price or Marketing. Can you post a link to your ad? PM me if you'd prefer. I also live in the area.
Attached is the link and the photographs, really do not do it justice. Seven years ago the rental was $245 p/w and now it is $310 p/w, but I have just noticed that there are others listed circa $300 p/w so perhaps there is more competition/desperation.

The house itself is small but with 3 bedrooms, and maintenance is a breeze as there is only a 5 x 5 mtr section to mow with the rest being natural bush. The block is large at circa 1640 m2. Everything is new except for the bath and is freshly painted, carpeted, tiled etc.

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=67405755&s=vic&tm=1237241950
 
First thing I noticed is that it is showing as two bedrooms. Anybody searching for three bedrooms would not even pull your house up on a search.

Apart from that, the kitchen seems a bit light on, and could you consider maybe an Ikea free standing island or something similar to give more bench space. Of course, renters can put a kitchen table in, but not enough bench space for most families in my opinion.

Looks fine to me, neat, clean and rather inviting to me.
 
First thing I noticed is that it is showing as two bedrooms. Anybody searching for three bedrooms would not even pull your house up on a search.

Apart from that, the kitchen seems a bit light on, and could you consider maybe an Ikea free standing island or something similar to give more bench space. Of course, renters can put a kitchen table in, but not enough bench space for most families in my opinion.

Looks fine to me, neat, clean and rather inviting to me.
It was originally listed as a 3 bedroom, however the response was that the living area was small so, on advice from the PM, we decided to try the 2 bedroom approach and potentially use a bedroom as a dining room or study if required. We shall see.
 
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