It’s been a challenging time for Perth property owners over the past few years.
With higher vacancy rates, lower rental returns and falling property prices, investors haven’t enjoyed the same success they once did in the Perth property market. According to recent suggestions, however, change could be on the horizon for property owners in WA. And whilst the market certainly hasn’t yet recovered, there are still many benefits to investing in Perth property.
Is now a good time to invest in Perth property?
Despite reports of an upturn in Perth’s rental market, this year’s vacancy rates have shown an increase since the start of the year, with rates currently sitting at around 7.6% as opposed to January’s 6%. In spite of the volatility of the current market, however, indicators do suggest there may be improvements as early as next year, although there are many factors that could influence the rental market during this time. However, this isn’t to say prospective buyers shouldn’t start investing in Perth property.
Whilst WA’s current rental market sits in favour of tenants, property investment could still be a smart long-term strategy for Perth’s prospective investors. In fact, some would say there is no better time to invest in property. With property prices and interest rates hitting a record low, now is a great time for first-time buyers or seasoned property investors to add to their property portfolio.
“If you have the equity and cash to support a mortgage, now is definitely the time to be looking at buying other properties” – Michelle Rigg, Rentwest Solutions General Manager
Property managers vs. private owners
It’s no secret Perth’s property market has been favourable to tenants in recent years. These high vacancy rental markets can prove a challenge for private owners who manage their properties independently. Due to high vacancy rates, owners will generally have to open property regularly and answer more calls and emails from prospective tenants. This hands-on market can become particularly difficult for property owners who also have a full-time job. This is where having a dedicated Perth property management team to manage and screen potential tenants can help alleviate stress and time.
Not only will professional property managers oversee the day-to-day running and maintenance of your Perth rental properties, they can also help handle negotiations and requests from renters such as reductions in rent or general property improvements. It can be difficult to say no to these requests as a private owner, but property managers will help you determine whether the requests are reasonable and provide a third-party buffer between you and your tenants.
How to handle high vacancy rates
In high vacancy rental markets, it’s important your property stands out from the crowd and presents its best during property openings. This can reduce your vacancy periods and help attract more interest from potential tenants. At Rentwest Solutions, we provide advice and marketing tips to ensure owners maximise the appeal of their Perth rentals during vacancy periods. Our marketing package provides owners with feature properties on REIWA and other property portals that can otherwise prove costly for private owners. Rentwest Solutions’s properties are still leasing despite the challenging rental market. “It really comes down to properties being priced right and presented well”, explained Michelle. The key is to know the rental market and adapt to what works in the current climate.
Rentwest Solutions’s property management solutions
Despite high vacancy rates within Perth’s property market in the past year, Rentwest Solutions has consistently maintained a lower vacancy rate than the overall average by three to four per cent. As a large property management team, we are able to open properties at all different times of the day, seven days a week. This has allowed us to bring new tenants to home opens outside of working hours. Our dedicated team have worked with property owners throughout this challenging rental market to maximise the appeal of their Perth rentals and keep vacancy rates at a minimum.
For more information about our property management services, get in touch with the Rentwest Solutions team on 9314 9888 or email us at [email protected]