The rental market is one area of real estate which is often overlooked by mainstream media when it comes to reporting current market conditions and trends. Many may be unaware that in the current climate larger rental properties have been steadily increasing in demand.
A shift in demand for larger rental dwellings
With a shortage of available rental properties and an increase in those looking to secure a rental, demand is sitting at an all time high. COVID-19 saw a change in the rental market particularly in relation to the type of property many are now looking for. After a year spent mostly at home, and a shift towards a work from home set up, the needs of the average family has changed.
Many renters are now looking for a larger dwelling that allows for a dedicated home office, or spare bedroom space that affords a work from home arrangement. As well as outdoor areas and extra living space to juggle the demands of home schooling, family time and lifestyle living.
The increasing demand for larger properties combined with rising real estate prices, has resulted in a growing number of buyers happy to sit on the sidelines and rent. As a result, we are seeing an increase in the number of available tenants.
It is not just demand that is increasing, rental prices are as well
With less than 400 properties currently available to rent in the Sutherland Shire, and only 60 of those houses, townhouses or villas with three or more bedrooms, the options are more scarce.
In demand larger dwellings are attracting a large number of prospective tenants with many going on to lease above the asking price. This is certainly the case here at Sanders with 75 National Avenue, Loftus recently being leased off-market for $780 per week, $60 above its previous rental price. Other properties are also reporting similar, with many leasing after only one viewing. 5 San Remo Avenue, Gymea attracted 16 tenant groups through its first open for inspection going on to lease for $600 per week. Similarly, 29 groups inspected 7 Jefferson Crescent, Bonnet Bay while 18 groups viewed 46/41 Bath Road, Kirrawee, both leasing after only one week on market.
What does this mean for homeowners and investors?
“For homeowners who have been contemplating a move, renting out your existing property and trialing a new location, property type or lifestyle is an often overlooked option, but one that is worth considering in the current market.” Rachel Fowler – Business Development Manager
COVID-19 and the shift to working from home has opened opportunities and made relocation to regional areas more feasible than ever before, with many looking for a lifestyle change and often a more relaxed and affordable location. Coined the ‘sea change’ movement, over the past twelve months relocating has gained popularity with residents of Greater Sydney, including from the Sutherland Shire.
If you have been contemplating a sea change or downsizing your current property, but are unsure about living in another location or a smaller dwelling, such as an apartment or townhouse complex, renting out your current property may be worth considering. Not only does it allow you to trial a new lifestyle, but it does so with the added security of having a place to come back to if the change doesn’t play out as you had hoped.
Equally if you own a rental property, particularly a larger townhouse, villa or house now is the ideal time to book a rent review, to ensure you are receiving the right market value for your property. If your property is managed by Sanders, our property management team is currently reviewing existing listings with leases due to expire and will be in touch shortly if we feel there is cause for a price rise.
For those with properties managed by other agencies we suggest contacting your current property manager. If you would like another opinion, feel free to contact our Business Development Manager, Rachel Fowler, who would be more than happy to provide a free, no obligation update on the current market value of your investment property.
The current demand for larger rental properties is showing no signs of slowing down in the foreseeable future. With an increasing number of buyers considering renting in the current market, demand for rentals particularly those of larger proportions is on the up. For those with a rental unit, the rest of 2021 also looks promising with the market having stabilised on the back of tightening supply.
If you would like to discuss your current rental property or the option of renting out your existing home, contact our team today. We would be more than happy to help you determine the best course of action for your situation.
Interested to know how much your property is worth?Book a free rental appraisal
Would you like to know the rental value of your home or investment? Why not call us on 02 9528 9899, email us or fill in the free property appraisal form.