To the surprise of many real-estate watchers, the Sydney rental market tightened further this October with the latest survey from the Real Estate Institute of NSW (REINSW) showing vacancy rates fell another 0.6% rounding out to 1.9%.
What does this mean for owners of rental property and property management across Sydney? It means the demand for vacant housing is at an all time high; vacant rental spaces are filled almost as soon as they are left unoccupied. And while it may present a crisis for tenants looking for vacancies, it’s a golden time to be an owner of property available for rent—weekly rental rates are high in properties all across Sydney and, despite this, the demand seems to be increasing.
And yet, there are still some owners of property that are never able to fill their vacancies. Having rental properties vacant for weeks on end while looking for tenants can put a huge dent in your investment returns.
Here are some professional tips to getting your vacant rental property filled as soon or before it hits the market.
Implement these 3 essential rules to get your vacant property filled with tenants today!
Whether you’re new to the market or an old hand at the property investment game, getting the best possible return from your investment is on the top of everybody’s list of concerns. Contacting an expert in residential property management services The Australian real estate market, particularly the Sydney market, finds itself in a rather volatile position at the moment. With a shortage of new developments, the rental market is tighter and more competitive than ever.
In order to ensure you’re making your investment work for you it’s important to avoid a number of mistakes many who enter the property market find themselves making. Here we hope to discuss just two of the key errors new investors make, in the hopes that you can avoid falling into these costly traps.
1. Not calculating all the costs.
Many new investors looking for rental properties Sydney tend to make the mistake of believing that investing in property is going to be a passive investment strategy. This is entirely untrue. As an investor in property you become a landlord, and will be required to actively play a part in the continued management of your investment.
When you’re calculating all the costs involved in purchasing an investment property, there are a number of questions you need to ask yourself. Is there a glut or shortage of properties? What type of rental properties are in demand? Is the area growing or declining? What is the typical occupancy rate? What is the condition of the property? Could you rent this property out quickly, or will you need to renovate? Asking yourself these questions in the planning stage of your possible investment will help you to recognise the warning signs of a bad investment property early.
Properties that are older, or require more maintenance (such as weatherboard homes,) are going to cost you more to maintain. This doesn’t change whether your property is leased or not.
Are you going to be able to cover those costs?
2. Not understanding all the risks.
Purchasing an investment property is no different to managing a stock portfolio, in that you need to have a clear and well defined picture of your end goal. Consider the first time property investor, one that wants to take advantage of capital appreciation in a quick moving market. To see how a quick moving market can change suddenly, you only need to look back to the GFC to see how quickly the market can affect property sales.
When a vendor shows you a number, the expected return on your investment or the projected income from rent, make sure to take time to consider all the risks and find out all the information behind the number. Ask yourself questions like what is the potential vacancy rate? What are the yearly improvement costs versus major costs that you will need to factor in?
Being driven by the quick buck can often be a catalyst for disaster. What happens if you need to sell the property? You need to decide whether this will be a short or long term purchase, and define a clear and flexible exit strategy.
Residential property management services can be an effective way of overcoming these key early mistakes. In the property investment game, experience can go a long way, so contacting someone with experience will help you make sure you don’t lose out when you should be coming up trumps.
As the real estate market in Sydney continues to tighten, and the availability of rental properties continues to decrease, many investors are asking themselves, where do we go from here? For those concerned with residential property management services, a number of questions are also being raised as to which direction our industry will take next.
While the crash in Sydney house prices that many doomsayers predicted last year never really eventuated, a number of real estate experts are identifying the key concern for investors over the coming years will be the return gained from rental income. As the selling price for homes in Sydney isn’t increasing as quickly as the residential property management services may have liked, the returns on capital gains will continue to reflect this slow growth. As such, it’s becoming apparent that rental yield is the most important consideration influencing investors, and is likely to be a larger component of total return (income plus capital gains) than in the past. They say the best returns and lower risks are being identified in properties away from the inner-city, in Sydney’s southern and south-western suburbs.
The pressure on Sydney’s east and inner eastern suburbs has meant a larger percentage of the population is being drawn to the “railway suburbs” of Sydney’s outer western ring, these being the growing suburbs of Liverpool, Campbelltown and Penrith. The managing director of specialist residential property management services SQM Research, Louis Christopher, says the best opportunities over the next couple of years may lie in the outer suburbs of Sydney, more than 25 kilometres from the city centre.
One of the reasons Christopher identifies this area as an interesting one to watch is that rents there have had compounding annual growth rate of up to 7 per cent over the past three years. He identifies a growing number of families looking for affordable housing is one of the key reasons prices are being driven up. While public transport and traffic flow remains congested in the inner-city, infrastructure projects such as rail and roads are being extended and improved and hospitals upgraded.
All this being said, the investment market continues to remain strong in the inner-city and eastern suburbs. Properties in the inner-city and eastern suburbs are generally considered a safer long term investment due to higher land values. The higher price tag can often deter first home buyers, but second-and-third time home owners remain willing to foot the higher price tag in return for a stronger long-term investment. While the east is likely to have a subdued year ahead, this makes it an opportune time to enter this market if you want to buy with less competition.
Lastly and not at all least, it is important that one of the most important to remember on of the most important factors which will ensure the continued growth of prices in the inner-city and eastern suburbs is that Sydney’s climate, lifestyle and natural beauty continue to place the city as one of the best places to live in the world – it’s hard to beat the early morning swim or surf on the way to work!These are all factors to remember when considering property management Sydney.
Rental increases are music to the ears of any owner of property but can sound the death bell for tenants in a rental property in Sydney. An increase in rent often reflects a strong economy and growth changes for the population and further, makes the decision to buy that much more appealing. When you consider that there is an average of twelve people looking at each single property on the market, it is a competitive place and the ratio of supply to demand offers insight into the rental price increases. Areas in Sydney which have increased rental costs in recent months include the Inner West and the Eastern suburbs. So let’s take a look at the cost breakdown of buying and renting a property in Sydney. The average cost of a unit in Sydney is $450,000- $500,000 or $600,000- $700,000 for a house whilst the median weekly rent for a unit in Sydney is $450, or $500 for a house. With rent this high it is little wonder that more people are asking why not purchase instead and put their rental money into their own investment for their future.
Becoming an owner of property is a big commitment, but a commitment with great rewards. The idea of paying off your Sydney residential property and securing your own home is very appealing and there has been an increase in Sydney residential property purchases since the slump last year. Overseas investors have shown particular interest in Sydney as there are still properties available with positive gearing. Although the first home buyers grant has decreased since last year and last year saw an increase in interest rates from early in the year, with increased rental costs offering a higher return, the appeal to buy is still strong.
The demand for properties is also set only to increase which is great news for purchasers or any owner of property and terrible news for tenants in Sydney rental property. Despite the fact that the high cost of unit development in Sydney has resulted in fewer units and houses being built, the Government has a very open plan for migration to Australia, with planned increases in skilled migrant entry, so property demand is sure to increase against the already short supply.
Some suburbs in Sydney where property management companies have reported that rent increases are outperforming inflation include Edgecliff, Ryde, Surry Hills, Bellevue Hill, Coogee, Lane Cove, Bronte, Rose Bay, Newtown, Rushcutters Bay, Woolloomooloo, Cremorne, Pyrmont and Glebe with some rents increasing by over 12 per cent. Rent rises were highest in Sydney followed by Melbourne and Brisbane had only two suburbs reporting rent increases exceeding inflation.
Whilst locations which yield the best financial returns in Sydney may not be convenient locations for your own lifestyle, keep in mind that if you purchase a property you can rent it out as an investment property and rent somewhere cheaper or more conveniently located. Also if it is not the cost but the time needed to invest in finding the perfect property then keep in mind there are numerous home property management companies in Sydney which can help you not just with your purchase but with the ongoing maintenance and running of your residential property in Sydney.
If you are not yet in a position to purchase your own investment property in Sydney and are on the hunt for your next rental property in a competitive market, then we have gathered some helpful tips that can help you keep ahead when securing your next rental property in Sydney.
So you’ve found a suitable property in a preferable suburb and you want to secure it, unfortunately you are probably not alone. But don’t fret, you can take action to stand out and get the attention of the owner and your offer in first. Try contacting the real estate agent of any rental property in Sydney before the inspection date to set up a private showing, this way you may be able to beat the crowds and secure the place first, before the other applicants even get a foot in the door. It is best to call ahead and most rental agencies provide the personal number of the property manager responsible for the property with the advertisement. Call early and you may even land an inspection that day.
If you get lucky and squeeze in an early inspection of your preferred rental property then be sure that you have given the property a thorough inspection as if you still attend the weekend showing, there will be a lot more crowds and it will be that much harder to get out the tape measure and start mentally placing your furniture. Also any noises such as street and overhead noise may not be as obvious amongst the noise of the crowd. A one-on-one inspection of your possible future rental property in Sydney will allow you to ask a lot more questions to the agent or owner as well and gives you more time before the scheduled public opening to weigh up the pros and cons of the property.
If the viewing times are secured then be prepared on the day. Have your forms pre-filled if possible and your bond ready to lay down that day. Be sure to talk to agent on the day and the owner if they are present to build up a relationship and rapport that may help you to stand out against other competing interests for the rental property. Be courteous to the other people inspecting and ask the owner or agent for a personal chat when they have time and you may land yourself a private walk-through once the crowds have gone.
Remember to have valid and up-to-date information for all reference checks, you don’t want to miss out on securing your dream rental property in Sydney because you had the wrong number or insufficient proof of identity.
Keep in mind the property management functions in place as well, as if your owner is living overseas then you will want them to have a local property management company overseeing the property so any repairs and maintenance you require can be done swiftly and you are not left footing the bill of that leaky light.
Happy hunting and good luck securing your next rental property in Sydney.
If you find yourself in the fortunate position of being able to buy an investment property in Sydney then there are some tips you may like to keep in mind.
When purchasing an investment property there is a lot to take into account before you dive in to the market. If this is your first property then you will need to do your research to get yourself in a position to successfully begin property management in Sydney. The type of property you are looking for may very well determine which suburbs are the most suitable.
Location is extremely important if you want to rent out your investment property, as certain suburbs are a lot more competitive and desirable for rental properties in Sydney. Check the facilities that the suburb offers and put yourselves in the shoes of the future occupant. If you were living here would you require public transport and how efficient is it? If you are looking to buy an investment property which is larger and more suitable for a family then are there education facilities close by and family-friendly restaurants or suitable parks? If purchasing an apartment as your first rental property then how suitable is the property for high-density living, for example, is the property sufficiently sound-proofed to cater for the noise to other occupants? Is there any parking available for the future occupants?
Be sure to ask as many questions as possible to be alerted of possible defects in the property you may have missed, speaking to the previous owner, occupants, neighbours and local businesses will give you a better idea of the suburb and alert you to any issues they encounter before you make the exciting leap of purchasing your Sydney investment property.
It is also key to keep in mind the maintenance costs of the property along with your property management fees .Your investment property will need to be kept in a safe and livable condition for the occupants. This can range from ongoing plumbing or electricity maintenance to pest control and fitting repairs. A property management company can take a lot of the stress out, by organising and carrying out regular inspections and being the first point of call for tenants. Be sure to choose a company whose values are aligned with yours and who have systems in place with sufficient access and open communication.
A property management company can also be extremely useful when choosing appropriate tenants for your new investment property as a property management company can specifically tailor the rental of your property to appeal to your target. From providing a floor plan for applicants to allowing 24/7 access to a personal property folder containing inspection reports, rental statements and professional photos of the property, there are some superior property management companies which allow all these as part of their service.
Are you planning on moving to Sydney and have no idea where to rent? Finding rental properties in Sydney can be a difficult task especially if you have never visited the area before. Before you decide to make your move down to the buzzing and always moving city of Sydney and purchase the best rental properties in Sydney there are a few considerations to make which will help narrow down your choices. Research is always important when deciphering an appropriate rental property. A few essential factors to research and consider when deciphering possible rental properties in Sydney include:
Location: which rental properties in Sydney are you looking? What is your ideal location? Would you like to live in the huddle bustle of the city or would you prefer the calm and sequestered country life? Are you considering a high-rise condo or townhouse? When making these decisions you should consider which would be appropriate in your circumstance, for example are you planning to continue your studies? If so it would be important to search for rental properties in Sydney that are located near educational facilities such as universities/colleges/tafe etc… do you have a vehicle? If not you may wish to find rental properties in Sydney that are located near transportation to save you the grief of finding multiple transportation methods.
Finances: before moving you must consider the budget of various rental properties in Sydney and match it to your own. You should be realistic about the price and pay attention to the interest costs associated with the mortgage or financing on the property, the annual taxes and any monthly maintenance fees. You may also come across other expenses including furnace cleaning, maintenance and inspection. Crating a list of all possible expenses will further ease the tension of finding the appropriate rental properties in Sydney.
Finding a good tenant: it is important when picking your tenant that they show a good history of paying rent and a regard for cleanliness and safety especially in your absence. You should consider their credit which can be achieved by finding out their employment status or getting into contact with their previous tenants and landlords.
As discussed there are a few critical factors to consider when picking prospective rental properties in Sydney. Your desired location, financial ability and possible tenant should be researched well which will help ease your transition and ensure a stress free move.
Do the words residential property management strike fear in you? Do you turn away from these words and look the other way as you do for an ex-girlfriend or ex-boyfriend? Many people see the words residential property management and are infused with confusion and stress. It can be very difficult to manage your own property, but with a myriad of different residential property management companies it is not impossible. Picking the right company for you can be an arduous task as their many possibilities and potential companies. But with a few tips and recommendations on picking the right residential property management company you may be on your way to undergoing successful residential property management.
When picking the right residential property management company it may be a good idea to have a meeting or chat with them to really decipher the advantages and services of that company. Getting to know them builds trust and interactivity and increases the flow of communication. While in the meeting it may also be good to ask the some questions including:
Their knowledge of the local market: knowledge of the local market will allow for the company to cater to those living in the area increasing chances of more tenants.
References: asking them for testimonials and references will show the experience and level of satisfaction from that specific residential property management group. Having this reassurance
will allow you to remain confident in the strengths of that group.
Accounting and revenues: asking them about their knowledge of accounting and revenue will allow you to scope out your financial gains and losses and evaluate the effectiveness of your decision.
Researching and asking these important questions from potential residential property management companies will help you make an effective and uniformed decision.
Silver bullet realty is a prime business in residential property management. With a high standard of customer service and professionalism silver bullet realty offers exceptional property management services.
Property management fees manifest in all different ways when you’re a property owner with tenants. Don’t expect to be dishing out just the standard property management fees such as repairs and maintenance. What about the state of cleanliness that tenants leave your property in and who is responsible for what?
The phrase ‘reasonably clean’ is often used in lease contracts and in court cases where a property owner wants to win a claim against a supposed unlawful tenant. But the term reasonable can mean different things to different people, that’s why we advise property owners to accept that there are additonal property management fees that don’t usually fit the standard description.
In order to revive an apartment or home back to the original state it was leased out in, ie. back to a sterile clean state, tenants will sometimes need to spend the landlord’s money in order to have it looking as if no one has lived in it. In this case, there is a clear distinction between reasonably clean and sterile clean.
While we can expect decency and respect from our tenants, it’s important to also take responsibility in order to do the right thing and avoid conflict. This way, everyone, both property owner and tenant maintain a good relationship and you get the most out of your investment property.
Are you looking to buy investment property? Well then now is the time to have the right understanding and expectations as a property owner. Here are some important areas to be mindful of as they can often cause conflict and upset to property owners.
1. Wear and Tear
It’s important to keep in mind that you will buy investment property and others will live in it – and every person who rents your property will live differently to you. Expect bumps and scratches to paintwork, woodwork and other items and remember that items naturally age as well.
2. The Rent Arrears Process
It’s always best to be firm about receiving rent on time. It is crucial not only to understand there will be a substantial financial loss when tenants don’t pay their rent, but also we strongly urge landlords to be covered by a quality landlord insurance policy (speak to us for more details).
3. Repairs and Maintenance
This is simply having the right expectation that everything that is provided as part of the tenancy, whether inside or outside, on the grounds or in a shed, has been provided in good working order. If an item breaks down, it must be repaired within a reasonable time frame. If it cannot be repaired, it must be replaced quickly.
These three tips should help keep you and your tenants maintaining a good relationship so you can enjoy your valuable property investment even more!