You can watch my latest rental market update for Perth, in the video below.
Rather than go over loads of stats with you, I just have one to share:
90% of our rental properties are leasing for or above the asking price, 10% are leasing under that mark.
We’re finding that about 30 people are going through a home open for a well-priced property, which is about how it has been for the past few months.
The upcoming concern is the end of the emergency (eviction moratorium) period at the end of this month, because this is a time when tenants may have to vacate and rental increases can come into effect.
We are seeing a lot of desperation. The rental market is very hot around $350 per week, which is a ‘safe’ budget for many tenants and families.
The next jump is to $750 to $1000 per week, and there is a lot of demand for properties there. We’re also seeing a lot of demand for 3-bedroom properties. People are looking for extra bedrooms in case they have to bring in a friend who can otherwise not find a rental.
Remember, that a property manager has a lot of applicants for every property, so you need to be a 10/10 applicant to be seen. Don’t skip anything on the application, as it may mean you are overlooked. This can cause a lot of frustration.
With the end of the eviction moratorium later this month, there are going to be tenants that now have to leave as they cannot afford the higher rents.
Those tenants that are “not perfect” will probably target private rentals, where they believe they have a better chance of getting the tenancy, as opposed to “super strict” property managers. This is an issue for those that try to lease out properties themselves.
Beware of bringing on tenants on these higher rentals, as you could have problems a few months in if they cannot pay the rent.