Record low rental vacancy rates and rising rent costs in Australia are leading to a country-wide ‘rental crisis’. According to Domain, last month’s vacancy rates (available rentals as a percent of all rental properties) reached lows of 0.8% in Melbourne, 0.9% in Sydney and 0.6% in Brisbane; while Perth came in at an all time low of 0.3%. These low levels of available rentals have been sustained for most of 2022, a situation not seen in the last 20 years.
So, what has caused record low rental vacancy rates and this rental crisis?
Domain’s chief of research and economics, Dr Nicola Powell, said the rental crisis was a result of reduced new housing supply and investment activity, the rise of short-term letting and a drop in household sizes as people sought out more space during the pandemic
The rise of Airbnb style letting has also been a factor, with many properties that were traditionally long term rentals moving to the short term market.
The re-opening of Australia’s borders after the pandemic has seen a rise in demand for housing, negatively impacting vacancy rates. Many expats have returned home to their own properties, which has required existing tenants to vacate.
There has also been a clear spike in overseas demand, primarily driven by the return of international students. China’s new policy that online degrees would no longer be honoured in China has resulted in a significant influx of students physically moving to Australia since January.
Interestingly, there has also been a shift in the type of housing people are looking for. Existing tenants have started to look for properties that suit the new work-from-home hybrid environment, so having a larger home or a home with a spare room is often a key factor when looking for a rental.
How does one secure a rental property in this type of market?
Relocation consultants at Australian Relocation Mangers work with agents and landlords day in day out, so understand exactly what they’re looking for in a tenant. Our key tips include:
- Be organised. Have all your paperwork ready so you can apply for a property immediately once you have inspected it. It takes time to prepare your application so star the process early. Make sure you have adequate I.D., proof of income and your rental history in order.
- Different agencies use different online applications, and they can be lengthy and complicated. Be sure to submit a complete and clear application.
- If your referees know you are applying for a property and are expecting a phone call or email from an agent, then they’ll reply promptly.
- First impressions matter. You don’t need to wear a suit and tie, but dressing professionally can earn you a tick with the agent.
- Real estate agents, property managers and landlords want to know you’ll be a reliable tenant, that you’ll pay your rent on time and treat the property as if it were your own. Proof of a solid rental history puts you at a significant advantage.
If you are relocating to Melbourne, Sydney, Brisbane or Perth and need some help to find a rental property, then contact us. We are experts at finding rental properties and can help you put your best foot forward in a very competitive rental market.