Leasing Market Movements - September

As the vacancy rate in the general rental market continues to rise above 4.5%, at Caporn Young, we have managed to keep our vacancy rates down to 1% over the Winter period. As we move on from the quietest period of the year, and into Spring, we will begin to see more properties coming onto the rental market. In light of this, we need to make sure we are prepared on a price, marketing and presentation level to give our landlords the edge in a competitive market.

With this increase in competition, it becomes even more vital to ensure, as a prospective landlord, that you arereceiving sound advice on the current market conditions. A poorly priced property can mean that it remains vacant for longer and offer no return on investment.

When you are seeking an expert opinion on the potential rental value of your investment, it is essential that you are presented with recent, relevant supporting evidence to back up the listing price. Everyone wants to achieve the highest possible price but this figure will, ultimately, be determined by the market of the day. If an agent gives you a value that sounds too good to be true, it probably is - and this is when things can become costly. I have seen this occur too often recently, resulting in properties being left on the market for months at a time, becoming stale and costing landlords thousands of dollars.

Presentation of the property is paramount if you are to achieve a premium price. This ranges from a general garden tidy up, to professional home cleaning, re-painting and/or possibly replacing old carpets. As Summer approaches, something as simple as a split system air conditioning unit (from $1000 installed) may give your property the point of difference to others in the same price bracket and attract a higher quality tenant.

Not only will the presentation of your property help to minimise the vacancy period, any maintenance carried out is likely to increase the value of your property and may provide you with some substantial tax deductions.

Despite increasing competition, we continue to have a strong list of tenants seeking premium properties throughout the Western Suburbs and we could have the perfect people for your property right now!

James Heath, Business Development Manager - Leasing