Articles will often appear in the press, in relation to falling rental prices and decreasing rental yields, specifically about the Sydney and Melbourne markets, as these are obviously the biggest rental markets.
But the media unfortunately have a history of ‘talking down’ the general real estate market, as possibly that makes for more interesting reading – a negative article must attract more reader interest than a positive one!
Certainly at different times of any year, rental prices will fall, but they will also increase at other times of the year. There are a number of factors involved with falling rents and also increasing rental prices and those factors don’t change. It’s a fact of life that properties are harder to rent at the end of any year – such as we’ve just experienced during the last months of 2017.
It’s also a fact that the demand for rental property is highest in the first quarter (or longer) of any year. It’s a welcome relief for us as property managers, to know that the tight months of November and December are now over for another year and we can now anticipate increased enquiry and more properties being let. We were attracting up to 15 groups of prospective tenants at our Open House inspections in January and as a result we rented 21 properties, this has continued into February.
The media doesn’t dictate what happens in the ongoing rental cycle, but they can certainly have a very negative effect on property owners, investors, prospective tenants and quite possibly – property managers!
If you have any questions on any aspect of property management, please don’t hesitate to call or send me an email… Jan Malmstrom 0408 769 053 or jan@investorsdirect.com.au
We look forward to hearing from you!