Every landlord wants to minimise vacant periods and find a quality tenant for their investment property as quickly as possible.
So when is the best time of year to advertise your Perth property for rent?
What is a good time to list your property for rent?
Timing is one of the many factors that plays into finding the right tenant for your investment property, and there are better times than others to list your property for rent.
When rental vacancy rates are low
Listing your property for rent at a time of low vacancy rates makes it much easier to find a tenant. When the supply of rental homes is low, and demand is high, properties tend to rent out more quickly, and it often leads to higher rents too. As rental properties attract more applicants when vacancy rates are low, it also means that landlords have a wider pool of tenants from which to choose, increasing the chances of finding a quality tenant.
As data from REIWA shows, Perth has been experiencing low vacancy rates for twelve months now. As of September 2021, the vacancy rate sat at 0.9%, well below the 3% rate considered the mark of a balanced rental market. Rents have increased by approximately 15% over the same period, with the median Perth rent now $450 per week for houses and $400 for units. Properties listed for rent while vacancy rates remain low have a good chance of being tenanted quickly.
During rental market busy periods
The beginning and the middle of the year are traditionally busy times in Australian rental markets. Tenants are often on the move at the start of the year while school is on holidays and work is quiet. A second, smaller flurry of rental market activity tends to coincide with the mid-year school holidays. Because lease agreements are often done on 12- or six-month terms, it creates a cycle that sees tenants looking for a new rental home at the same times each year. Listing your property for rent at these times can be advantageous – after all, there are more tenants looking for a home – but it also means your property will face more competition.
However, it’s important to note that COVID-19 has changed things. When COVID hit our shores last year it had an impact on vacancy rates, which fell from 2.0% in June 2020 to 0.9% in September of the same year and have hovered between 0.8% and 1.2% ever since, according to REIWA. What this tells us is that rental properties are in constant high demand at the moment.
As far as rental listings numbers are concerned, REIWA President Damian Collins noted at the beginning of November that ‘the biggest issue facing the Perth rental market is … a shortage of rental stock.’ He also predicts that demand for rentals will likely only increase further when our state borders open next year.
When your property is at its best
Every property has different qualities, and sometimes those features come into their own at different times of the year. For example, properties in coastal suburbs are often at their most attractive to prospective tenants in spring or summer, as are homes with a pool. If your investment property is in a beachside suburb, it can make good financial sense to time your listing to coincide with the warmer months, if you have the choice.
When your current tenant’s lease is coming to an end
The best time of year to list your property for rent, as far as your rental yield is concerned, is when your current tenant’s lease is due to end. Minimising the time between one tenant moving out and the next one moving in is the best way to avoid losing rental income.
What is a bad time to list your property for rent?
An experienced property manager will always be able to find a tenant for your rental property, but there are times when it may take longer than usual.
When it’s the holidays
Real estate, both rentals and sales, tends to be quiet over the Christmas and Easter periods. Many people are away on holidays, new listings slow right down, and property inspections take a break. Listing your property for rent during holiday periods will likely mean it takes longer to find a suitable tenant.
How can landlords control the timing of a rental listing?
You can’t always control the time of year that you list your property for rent. If your tenant moves out unexpectedly, you’ll want to replace them as soon as possible, regardless of the time of year. And people need to move house for all sorts of reasons, at all different times. But you can plan for your next lease to end at a more convenient time of the year by setting the lease term accordingly. Rental agreements can be set for any number of months – they needn’t be set in six or 12-month increments.
Right now we’re doing our best to avoid vacancies in the properties we manage over the Christmas period.
With vacancy rates at historically low levels, now is an ideal time to list your Perth investment property for rent. Contact our specialist property management team for advice about listing your rental property today.