Sydney West rental is going soft?

[RetireRich101]

is anyone experiencing a very soft rental market in Sydney West for the last few months?

I have a property in St Marys have been trying to lease out for the last 3 weeks without luck
Started $420, then $400, now $380 and is still getting 1-2 applicants. And even with $360-370 with close to xmas, it might hit a panic button..

Maybe I started a tad bit high, but Managing Agent is telling me the rental market in the west has been soft for a while, with investors building granny flat everywhere...

 

[DaveM]

Yes it can be a bit slow, and xmas is not helping. But realistically its returned to normal. The days of queues of 50 people at opens is mostly gone, you are back to 1-3 apps per listing.

There has been an influx of investors buying up properties so the rental stock is higher, and also a move from renting into buying due to low rates and high rent making owning cheaper.

One thing my agent did mention is there is no shortage of applicants, but there is a shortage of decent applicants.

 

[RetireRich101]

Yes I think a combo of renter becoming buyer due to low IR and investor buy and build GF.
I had an applicant. 1 mother with 4 teens. She doesnt have wage and I can't see she can afford... So you're correct about quality of applicant's at present.

 

[Serenas]

is anyone experiencing a very soft rental market in Sydney West for the last few months?

I have a property in St Marys have been trying to lease out for the last 3 weeks without luck
Started $420, then $400, now $380 and is still getting 1-2 applicants. And even with $360-370 with close to xmas, it might hit a panic button..

Maybe I started a tad bit high, but Managing Agent is telling me the rental market in the west has been soft for a while, with investors building granny flat everywhere...

We happened to have one in St Marys as well, and it has been rented for so many years with the unchanged tenants (rent up to $320 for the last year or so), and I was considering putting up a bit rent, but then seeing that someone's else's three bedroom house is only asking for $300. So I think perhaps I better stop thinking of the rent increase possibility. ---ours is an old not renovated house, we have been thinking of taking back the house and get it renovated then rent it out again.

One more thing I noticed about that area is, Granny flats are rented almost as high as other granny flats in Parramatta region etc.(Or if not as high as, similarly as high anyway). So it seems to me, the West Sydney is always an area with people who are very sensitive and responsive to a little rental increase or decrease, because of their nature of low income something?

 

[RetireRich101]

Probably best to talk to your PM to get a feel if Tenant has any plans to move on then decide if you can slip a $5 or $10 increase..

you would try to keep existing tenants there at least after the new year.

if house needs a touch up, i would suggest to do this few months down the track to see if we can get more quality applicants. the existing tenants has been there few yrs, so I imagine they get are accustomed to their own dirt, wear and tear, but not so for new tenants