The Melbourne rental market is still enjoying a very competitive leasing environment with properties in many cases receiving multiple applications. Effectively, Rental Providers can select quality tenants and in turn limit the risk of arrears. Miles arrears rate is consistently 1% of our 2500 residential portfolio, that is due to our outstanding Property Management team and thorough leasing and maintenance process.
Rents are increasing, whilst days-on-market decreasing
Across Melbourne, the vacancy rate is down to 3.2% from 3.8% in the previous quarter. Miles currently has a lower vacancy rate of 2.14%. In Banyule, properties are leasing exceptionally well with the median days on the market sitting at 12. In many cases, houses are leasing faster with two bedroom homes leasing within 10 days. Miles recently leased 59 York Avenue, Ivanhoe East a four-bedroom, two-bathroom residence with a pool for $1200 per week.
Adding value – 5 steps Rentals Providers should consider
Even though vacancy rates are low and properties are leasing quickly, it is still important for Rental Providers to make improvements which will assist attracting high quality tenants. We suggest the following:
- Fresh paint, carpets or flooring. For example, sanding and polishing older floorboards or replacing old carpet with new will provide an instant refresh. Simple updates to bathrooms such as a new mirror, fixtures or tap wear. Or try updating the cupboard and door handles in kitchens.
- Adding a dishwasher, storage or other appliances which potential tenants will find appealing.
- Professional cleaning. At Miles, your Property Manager can recommend and arrange reasonably priced cleaning crews.
- Tidying gardens, yards and outdoor areas will enhance the overall appeal of your property.
- Professional photography & styling. We recommend engaging a professional photographer and adding in virtual furniture for a styled and enhanced visual appeal. A neat and tidy presentation will also benefit your marketing campaign.
In many cases, your Miles Property Manager can assist or recommend with these improvements and maintenance. The key benefits of making these upgrades, if done correctly, will add visual appeal, increase long-term value without over-capitalising and enhance the rental potential of your investment.
If you are thinking about renting out your property, and you would like any information about our services, or an obligation free rental appraisal, please don’t hesitate to get in touch on 03 9497 3222 or visit our website.
