There’s been quite a bit of talk recently about the difficulties some landlords experiencing in finding tenants for their rental properties, with some reports indicating that some landlords have had to discount their rents in order to attract a tenant.
What has become clear recently is that the level of discounting on rents seems to depend on which area your rental property is in.
For example, recent analysis by Domain indicates that densely built-up areas of Melbourne like Southbank and the CBD experienced the highest level of rental discounts, with over 40 percent of rental properties discounted in May 2020.
It is important to remember that the inner-city rental market was impacted heavily by the pandemic due to its exposure to overseas migration and international students. Of course, with the tourism market coming to a halt during the lockdown, many apartments that were formerly available for short-term accommodation also moved into the longer-term rental market, increasing the supply of apartments for rent.
The data from Domain shows that more than 30 per cent of rentals in areas like Brunswick West, Docklands, Prahran, Toorak and West Melbourne were discounted last month. In contrast, suburbs in other parts of Melbourne like Canterbury, Cremorne and Burwood only recorded discounts to just over 3 per cent of rentals.
The key message to emerge from statistic like these is, (as we pointed out in one of one of our posts last month), the right advice from an experienced advisor can make a huge difference to the performance of your property investments.
So if you are currently considering buying a rental property, whether for the first time or the fiftieth, be sure to call the team at Ian Reid Buyer Advocates on 9430 0000, or go straight to the Ian Reid Buyer Advocates website.