Wow, 2015 was a busy year. The new horizons space globe passed by Pluto, Zayn left One Direction, there was a female winner of the Melbourne Cup and not mention Rentwest Solutions let over 600 properties, 639 to be exact. Amongst a year of negativity marked by a rising vacancy rate and falling rental prices I’d say that’s pretty darn good. Every cloud has a silver lining and we’re quite confident in saying we’re happy with ours. Unfortunately it would only be fitting that I repeat the effect of the cloud (I’m sure we’re all sick of hearing it).
Property Market Initial Reflection
In the last 18 months and particular the last 12, the property market has continued to suffer as a result of adjusting to the fall in the resources sector and subsequent changes to population levels in Western Australia. Over the three months prior to December the median rent was $400.00 per week. One would assume then that this is now below the $400.00 mark as the market continues to decline? Actually, no, it has remained the same! The median rent currently sits at $400.00 per week. $410.00 for a house which is a 1.5% rise, and a 2.5% rise for units to $380.00 per week. So this must mean the market is stabilising? REIWA seems to think so.
Property Market Progress
In an article released on 6th January 2016 REIWA President Hayden Groves said “The rental market has also showed signs it is stabilising with weekly rents increasing across the board and listings at levels consistent with the month prior.” There are signs when we look at the statistics of how many properties have been leased in the last week. There were 1700 properties leased last week (as of 7th February 2016) which is more than double the number of properties leased 4 weeks ago and an increase of over 300 from this time last year. Unfortunately there has also been a rise on the number of properties that have come available. This week there were 10,042 which is a rise of around 240 from 4 weeks ago and over 3500 from this time last year. Looking at these figures from a different perspective. This week, unless my maths is wrong, 16% of the properties available have been leased, 4 weeks ago it was 8% and this time last year it was 21%. Is the market really steady? I think it’s a bit premature to really know.
Rentwest’s 2015 Performance
That’s enough on how the Perth market was doing, let’s see how 2015 was for Rentwest. As stated earlier we leased 639 properties last year. You probably remember but we’re quite proud so like to repeat it. There were 251 working days in WA last year. That means we leased, on average, 12.5 properties a week. I think those Friday bubbles were well deserved. It wasn’t all luck. There was a fair amount of hard work put in! We conducted 3332 home opens. With an average of 15 minutes for a home open that means we spent 833 hours showing properties to prospective tenants. We also had over 10,000 enquiries and now have over 44,000 prospective tenants on our database. All contributing factors to our incredible 97% occupancy rate. We’re not pessimistic, we like to focus on the positive numbers but for those who like hearing the vacancy rate, it’s 3%. The current Perth metro rate is 6%. So in a nutshell what does this mean? It means we lease property efficiently.
97% Occupancy Rate
12.5 Properties Leased Per Week
639 Properties Leased
3332 Home Opens Conducted
10,368 Tenant Enquiries
44,266 Prospective Tenants on Database
Our Dedicated Leasing Team
It also means we have the potential to continue leasing property. We have started January on a high as our figures reflect an overall increase in all aspects from December. We have received 1135 enquiries, conducted 197 public home opens of which 324 tenants registered to inspect and we have received 125 online applications. Not too bad considering there were only 19 working days in January. All in all, the leasing team at Rentwest are good, very good. We are the largest independent Property Management firm in Perth and with it comes the largest dedicated leasing team in Perth. We have a dedicated leasing team. That means that is all they focus on. We have a team of 4 working over the full 7 days tirelessly working to ensure we lease property, and lease it fast!
Forward to 2016
Our current aim for 2016…to continually improve on our previous performances and we are extremely confident we will do so with the result of more happy landlord and happy tenants. If you would like to be one of those happy people give Rentwest Solutions a call. The firm with a focus on leasing.