As we navigate the ever-evolving property market, I wanted to take a moment to address the current state of the rental tenant market and its implications so we can be ahead of the game together.

It’s no secret the sales market has experienced a downturn in recent times, and as usual this trend also trickles down to the property management sector. With fewer prospective buyers in the market, there’s been a noticeable shift towards a tenant driven market, and in some areas we are in a ‘tenant market’ which we haven’t seen for some time.   

What does a tenant market mean?

When there are more properties available than tenant activity the term ‘tenant market’ is used. There are several implications for rental properties including decreased tenant demand and reduced tenant applications because tenants have more options to choose from. 

As a property management company, it means we need to work together with our rental owners to strategically attract and retain quality tenants. 

What are some things that can be done?

• Consider market conditions: Our property managers will be thinking about what needs to be done to make the rental property stand out in order to attract tenant applications. We need to be competitive with the market rent, make sure property photos/videos are good quality, and amongst other strategies, often even allowing pets opens up the property to a wider audience.
• Retain Tenants: We recommend looking after good tenants so there is lower tenant turnover. It is crucial to prioritise retaining good tenants, maintaining stable rental rates, and offering flexible renewal options to encourage tenants to stay long term. Although maximising returns is a priority, we advise against significant rent increases during this time, so tenants renew, and prolonged vacancy periods are avoided.
• Maintain quality property standards: This is a priority now more than ever with tenants who have so much more choice and can compare properties to the increase in new builds coming onto the market. If there are renovations, or spruce/touch ups needed – now is the time.

We are committed to providing you with the best advice, especially during market fluctuations. Our team is here to provide expert guidance and assistance in navigating the rental market landscape ensuring that your investment remains profitable and sustainable in the long run, until the market turns around again as it always does.