A look at the rental market data in Perth and Mandurah and whatthis means for Property Investors
According to data from REIWA June Qtr 2013 reports, the Perth Metropolitan medial weekly rent is sitting at $475. That’s an increase of 1.1% from the 3 months prior, and a large 10.5% increase from 12 months prior.
In Mandurah, the median weekly rent is $380. That’s an increase of 5.6% over 3 months, and 11.8% over 12 months. With such a large jump in the last 3 months, perhaps it’s time to consider reviewing your weekly rent price.
If you haven’t raised your rent (in over 12 months)
If you have investment properties in Perth and haven’t had a rental price increase in the last 12 to 18 months, it would be worth considering this. You should discuss this with your property manager – but keep an open mind – everything is relative. Your property manager will know a lot more about what other properties around your specific area are doing.
If you have recently raised your rent (in the past 6 months)
If you’ve recently raised your rent, suddenly jumping up to raise it is probably not the greatest idea at the moment. Here’s why.
1. Perth’s median weekly rent has remained unchanged at $475 per week all the way through to August last month.
2. Tenants have more options:
With recent conversations and media focus on the rebate drop provided to First Home Buyers, the data from REIWA (Real Estate Institute of Western Australia) makes sense; the First Home Buyer market has been running hot.
How does the First Home Buyers rush affect Property Investors and Landlords?
People who would otherwise be considered potential tenants are now considering buying. There are many people jumping on the first home buyer’s bandwagon, taking advantage of the extremely low interest rates from the banks, and making a move into their own properties.
This has been reflected on the number of rental properties available for rent on the market.
At the end of August, reiwa.com showed 4,027 rental properties on the market. To give you some perspective, that figure is up 9% over the last 3 months, and up 75% over the last 12 months. Push the rent up too high now, and you risk causing too much stress and friction, which may give your tenant a few options; options that aren’t in your favour.
As usual, it’s always best to talk to Rental Management Australia directly about these issues on 1300 440 166, Remember, what’s right for one property investor won’t always be right for another.
Thank you so much for the great work over the past 12 months looking after my investment and I look forward to another fruitful year.