Shift in Leasing Market Evident
Long-term renting in Australia is increasingly being driven by lifestyle factors and price, according to realestate.com.au’s Consumer Intentions Study. Around 71% of the 1107 Australians who responded to the survey say they would stay in a long-term rental property if they were allowed to decorate; whilst 41% said they would like permission to change the garden. Once they find something that suits them, most people want to stay in a property long-term. More and more people are finding that renting is a lifestyle choice and you do not have to tie up your capital in a mortgage.
Whilst data from consumer group Choice shows that only 6% of renters have fixed term lease agreements that run for at least two years, most would prefer a longer lease. The average stay is two to three years before people look to move. Younger people are, I believe, happier to move and trial different neighbourhoods, however families want the security of a longer-term rental.
Long-term renters may often also be owners who buy a property in an outer suburban area and choose to live in an area that is closer to work or has preferred lifestyle amenities. For people who want to invest and build asset worth, they may choose to buy property elsewhere and then choose to live in an area where it is convenient for work or school zones.
Recent legislative changes made in Victoria have been designed to promote long term tenancies and show that legislators are now prepared to regulate to cater to the needs of renters. The property industry should look forward and be looking at ways to make the process of finding and retaining a long-term rental property easier.
A recent leased property - 4 David Lane, Windsor is a great example of this. All four prospective Tenant applications received for the property, were medium-to-long term renters who desired this style property. We obtained a great result by achieving the highest price for a 3 bedroom residence in Windsor in 2019 to date, leasing at $1250 per week to a professional couple.
With Spring in full swing, now is a great opportunity to be future-proofing your home or investment, and learning about what potential tenants are looking for, recommended length of tenancies and the rental income you can achieve, particularly if you have plans to make a move in the near future.
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