Perth rental market at 12 year low…

 

 

 

 

 

 

 

As at the end of August the Perth rental market had dropped to a 12 year low with a vacancy rate of 1.6%.  Perth’s vacancy rate has not been this low since 2008. Contributing factors to this could be a lack of new supply due to investors staying out of the market, returning expats to WA and investors selling their properties.

The vacancy rate has remained below 3% for 21 months, which has generally stabilised rents after the post mining boom downturn. A balanced market would see a vacancy rate sit around 3%. Some regional areas are experiencing a lower vacancy rate than Perth. For example Kalgoorlie and Albany are reporting a vacancy rate of 0.9%. Current rental listings with REIWA are sitting 50% lower than at the same time last year. This is creating a lot of competition amongst prospective tenants. We will start to see the impact of limited stock and its only a matter of time before rents start to rise.

Information has been sourced from REIWA.

Rental vacancy rates across the capital cities have tightened in the month of July – except for the Victorian capital of Melbourne.

 

 

 

 

 

 

 

Most rental markets tightened in July, with fewer available rental listings suggesting landlords of holiday lets are converting back to short-term leasing. The further easing of COVID-19-related restrictions across the country will have fuelled the fall in rental supply in all capital cities, except Melbourne.

reiwa.com data revealed Perth’s rental stock has been quickly absorbed, with listings falling by 17 per cent in May to 4676, which is the lowest they have been since November 2013.

It is also significantly lower than the same time last year when there were 7243 properties available for rent.

In May, Halls Head saw the biggest spike in leasing activity growth with 33 leases for the month and was closely followed by Nollamara (20 leases), Coolbellup (16 leases), Joondalup (18 leases) and Como (18 leases).

Source Domain & REIWA

Property Management Online Booking System

 

 

 

 

 

 

 

LESS VACANCY…….MORE RENT

MORE TENANTS…….BETTER RETURNS

Empire Property Solutions have a custom-built system that allows us to manage your rental enquiries 24/7. This allows us to look ahead to see how many people have enquired and registered to view your property.

We have access to real time data about the amount of interest in your property. This proactive approach makes it easy for prospective tenants to inspect your property.

HOW DOES IT WORK

• Genuine 24/7 system. 38% of tenants book inspections after normal business hours.
• Our system allows numerous inspection times to be nominated, meaning more prospective tenants can arrange to see your property.
• Inspection times and dates for your property are listed on the internet through our custom-designed software, Register Online.

 

Online Booking System

• Prospective tenants click on an “inspection” link and find the time and date that suits them best.
• When an inspection is booked, the tenant receives an instant confirmation.
• Tenants also get reminders, via SMS and/or email, about their upcoming inspection one day and one hour in advance.
• Our software is also accessible from smartphones (such as iPhones) & tablet computers (such as iPads) – so appointments can be arranged.

COVID-19 Lease Update

 

 

 

 

 

 

The ability of a tenant to break their lease during the COVID-19 emergency period raises questions from landlords and tenants.

Below are commonly asked questions. The responses have been provided by REIWA.

Break lease policies

Can the tenant terminate the tenancy?

Yes, the tenant during the emergency period can terminate the tenancy agreement:

• If the tenant is suffering financial hardship, then 21 days’ notice can be provided to terminate the tenancy. [section 20(2) of the Residential Tenancies (COVID-19 Response) Act 2020]
• Under the current provisions of the family and domestic violence provisions of the RTA [s18]
• If the tenancy is periodic, then by providing 21 days’ notice [section 20(1)(a)(i)] of the Residential Tenancies (COVID-19 Response) Act 2020}.

Can a tenant, in a fixed term lease, break lease at no cost if they are not suffering from financial hardship caused by the economic effects of the COVID-19 pandemic?

No, the tenant does not have that right.

Note: the wording in s20. is not ideal and a court faced with making a decision would revert to the intent as provided by the government in the parliamentary debates.

Can the lessor claim financial damages associated with the break lease from a tenant who is suffering the financial effects of the COVID-19 pandemic?

No.

What about outstanding rent that has accrued prior to the termination date?

Remains a debt owing to the lessor that if not paid can be claimed through the Magistrates Court.

Can the lessor claim financial damages associated with the break lease from a tenant who is not suffering the financial effects of the COVID-19 pandemic?

Yes.

At Empire Property Solutions we have noticed minimal impact to tenant’s ability to service rental payments. Enquiry from landlords and tenants at the beginning of the pandemic was high, however many questions have been answered by the government and policy implemented.

CREATE THE HOME OFFICE OF YOUR DREAMS

 

 

 

 

 

 

Whether you work full-time at home or occasionally need to conduct business in the evenings or on the weekends, a home office a great way to utilize an extra room. A dedicated workspace in your home can be designed to increase productivity and comfort. Here are 5 ideas to get you started.

1. Invest in a good office chair. Investing in an ergonomic office chair is essential. You may be spending anywhere from 30 to 50 hours a week sitting in it, so your back will thank you. Purchasing one with multiple adjustments is ideal so it fits you just right.
2. Switch up your lighting. Fluorescent lighting has been proven to be hard on the eyes. Make the switch to LED or halogen light bulbs in your home office and try to let in as much natural light as possible. Also, consider finding a desk lamp to reduce headaches and eye strain.
3. Keep essentials in reach and organized. Nothing says productivity like a clean, neat workspace. Select a desk with a lot of storage or install creative shelving to keep items like pens, pencils, extra batteries, calculator, notepads, and more stored within arm’s reach.
4. Decorate bright. Pick a color you love and use it to spice up the room. Use cheery yellow or red or relaxing tones like green and blue, instead of beiges and browns.
5. Aim for the view. If possible, place your desk so you are facing a window instead of a blank wall. Natural light can do wonders for staying alert and you can give yourself a short mental break when necessary by looking to the outdoors.

Perth Vacancy Rates Hit a 5-Year Low

 

 

 

 

 

 

 

 

 

 

According to a recent article released by REIWA, Perth rental market continues to show recovery with vacancy rates dropping to 2.8 per cent in the December 2019 quarter.

With the peak vacancy rate being just 18 months ago in June 2017 at 7.3 per cent, it’s a welcomed change to investors in Perth and a positive outlook for the year ahead.

Although we have seen a drop in vacancy, Perth’s median house price is still holding at $350.00 per week.

Damien Collins quoted in the recent article;

“When we drill down further and isolate houses and units, the results of the December quarter are very pleasing for landlords, with both houses and units experiencing increases in rents. The median house rent increased $10 per week to $360 during the December quarter, while the median unit rent increased $5 per week to $325.

“This improvement didn’t translate into an increase in the overall median as there were more units leased during the December quarter than houses, which has kept the overall median stable.”

“If the rental market continues on its current trajectory, we should see Perth’s overall median rent price increase in 2020, which will be a welcome development for landlords” Mr Collins said.

What does this mean for you as a landlord? 

The stability of our median rental values coupled with the decrease of rental properties available on the market, should see slight increases in rent throughout 2020.  We still need to see consistency with vacancy rates throughout the next 3 – 6 months however, it is a very good step in the upward direction.

It’s important as a landlord that you always ensure your marketing strategy is the right one for the type of property you have.  Attracting the right tenant within a short time frame can be a huge difference to the rental return on your investment throughout the year.

With Empire Property continuing to hold a vacancy rate at 1.9%, well below the state’s average, we encourage landlords’ to always ask for an update on where their property sits in todays’ market and asking what the best method of marketing would be for their type of property.

It is also important to ensure you are continuing to put your best foot forward.  Continuing to add value and improve your investment property will always help with the ability to achieve higher rents and attract quality, long term tenants that will result in higher returns.

If you have an investment property and want to chat about where your property sits in the market or even if you haven’t been 100% happy with the service you have been receiving, please give our team a call on 9335 7555.

Give Your Deck a Facelift!

 

 

 

 

 

 

 

Hanging out with your family or hosting friends on your old, dingy deck is not very appealing. Lucky for you, refreshing it doesn’t have to be difficult or expensive. Try your hand at the makeover ideas below!

Restore your decking. Depending on the shape it’s in, sometimes all your deck needs is a little love. If it’s still fairly new, your deck might just need a deep cleaning and a new coat of sealant. There is a multitude of deck finishing and cleaning solutions on the market to choose from to achieve this. However, if its more worn down, the rejuvenation process may be a bit longer, including searching for larger repairs, tightening any hardware, giving it a good cleaning, applying a stain, sealant, and paint, and more.

Add lighting. Ambient lighting can completely transform your outside space into a relaxing, cozy oasis. Consider adding solar lights that don’t require a plugin or battery replacement. The lights turn on automatically when the sun sets, making your deck come alive. You can also consider paper lanterns, rope lights, mason jar lamps, or small twinkle lights, depending on the style and mood you’d like to set.

Build a privacy screen. Privacy screens come in all styles, shapes, and sizes. Consider purchasing and installing bamboo fencing or lattice panels for a quick and easy solution. Or, if you are feeling a little more adventurous, you can build a wooden frame and grow climbing plants or vines or stretch outdoor fabric in between. Whichever route you end up choosing, make sure you get the most out of your efforts by evaluating all lines sight before building.

Home Equity. Getting a home equity line of credit allows you to borrow money against the value of your home. You receive usually up to 80 percent of your home’s value, minus the amount of your loan.

 

Must-Have Tools For Homeowners

 

 

 

 

 

 

 

 

 

 

 

 

 

When you own your home, things are going to break and, unless you want to spend your money on visits from a neighborhood handyman, you’re going to need to fix them yourself. Luckily, you don’t need an arsenal of tools to handle most home maintenance fixes. These five tools will cover most of your basic projects.

1. Cordless drill. A cordless drill is a must-have for installing cabinets, drawer pulls, hinges, picture frames, shelves and hooks, and more. Whether it’s for do-it-yourself projects or repairs, you’ll use your cordless drill just about every month.
2. Drain cleaners. Shower and bathroom sink drains are susceptible to clogs because of the daily buildup of hair and whisker clippings. You can use chemical clog removers like Drano, but they’re expensive and the lingering chemical scent is unpleasant. Instead, buy some plastic drain cleaners that can reach into the drain to pull out the clog of hair and gunk. You can purchase them on Amazon or at a local hardware store for a low price.
3. Shop-vac. No matter how careful you are, spills and accidents will happen and there are some tasks that just can’t be handled with paper towels or a standard vacuum, like pet messes or broken glass.
4. Loppers. Even the minimum amount of care for your landscaping will require some loppers to remove damaged branches, vines, thick weeds, and any other unruly plants in your yard.
5. Flashlight. You’re going to want something a little more powerful than your iPhone flashlight when you’re in the crawlspace!

 

 

Spring cleaning tips: 5 jobs you should put at the top of your list!

 

 

 

 

 

 

 

Spring has sprung and now is the time to dust off the old cleaning gloves and put some elbow grease into those jobs you’ve been putting off for months.

Before the nerves set in, rest assured that with a little planning, a spring clean won’t take up your entire day or leave your house smelling sterile like a hospital.

With some quick tips and some basic household items, your tough spring cleaning jobs will be finished in a jiffy. Here are five tasks to get you started.

1. Get those windows crystal clear: Window-washing doesn’t need to be associated with streak marks, smudged spots and expensive cleaning products. Cleaning your windows is actually one of the easiest spring clean jobs to wipe off the list. Using an equal parts vinegar and water mix, simply spray onto the window and wipe clean straight away with a paper towel or micro-fibre cloth in a horizontal motion.

TIP: If you have any old newspapers lying around use this instead of a cloth. The ink acts as a mild abrasive and allows you to make use of old newspapers.

2. Unclog your drains: Drains are an often overlooked part of your cleaning routine, but a clogged drain not only causes a horrible smell, but it can also really affect your plumbing. Tackle your clogged-up drains with a basic mix of vinegar, bicarb and water to break away built-up grime and leave drains smelling fresh. Pour a tablespoon of bicarb followed by a tablespoon of vinegar into your drain and let it work its magic for about 20 minutes. Rinse it away with some boiling hot water, repeat if needed, and you’ll have fresh-smelling drains without the hard work.

3. Clean out the oven: The baked-on stains in an oven are enough to cause anyone to vow never to cook again. But instead of reaching for the Uber Eats app or using harsh chemicals and scrubbing for what feels like forever, let your trusty household vinegar and bicarb mix do the hard work for you. Warm your oven a little to help break down some of the grease. Then rub a paste of bicarb and warm water all over your oven, followed by a generous amount of white vinegar. Leave it to bubble away and break down for about an hour – depending on how dirty your oven is – then wipe clean with a cloth.

4. Tackle your kitchen: You would be surprised by how many germs live in your everyday kitchen items – which is why you should replace or wash them regularly. Start by throwing away old cloths and sponges and cleaning out your bin with lemon juice. You can also give your wooden chopping boards a little freshen up with some coconut oil and half a lemon to keep the wood sparkling and to kill any lingering bacteria.

5. Improve your lighting: What if we told you brightening up a room is as simple as giving its lighting fixtures a once-over? Use a damp cloth to gently wipe away any dust build-up and let that spring feeling in with warm, clean light.

When tackling spring cleaning, think of a top-down method – do your lights first and finish with skirting boards and floors, that way you aren’t going over what you’ve already done.

Create an Evacuation Plan for Your Pets

 

 

 

 

 

 

 

 

An evacuation plan is a necessity for every home, especially if you live in an area where fires, earthquakes, hurricanes, flooding, and other disasters are a possibility. Many homeowners create evacuation plans for their homes and practice them with their kids, but far fewer have considered one for their pets. Take these steps to add your pets to your evacuation plan.

Assign pet evacuation to an adult. Everyone should know how to act during an evacuation, and that includes assigning one parent or adult to the pets. This allows the other parent and the children to focus on their part of the evacuation plan, so there’s no confusion during a high-stress moment when time is of the essence.

Keep evacuation maps and pet carriers readily accessible. If you need to evacuate, you should know exactly where every important item is. If you pets require carriers, keep them in a place that you can access easily.

Practice your plan. Include your pets in your home evacuation drills. It’ll help you see how they will respond and make changes to your plan if necessary. Getting your dog out of a window may not be as simple as you think!

Be prepared in case you get separated from your pets. No matter how much you drill your evacuation plan, it’s possible that a dog or cat will run off while you’re focusing on keeping your family safe. A microchip or a GPS-compatible tag can help you find your pets once it’s safe to return to the area.