Advice from REIWA to Perth landlords can be taken as sound advice across the country.
With Perth investors concerned about some decline in the local market, REIWA Deputy President Damian Collins said they need to consider strategies to attract good tenants and maintain strong yield prices.
The winning strategy for investors was to offer “well-presented properties at realistic prices”, he said.
Investors who are doing best in the market were those who have built properties that attract a buyer happy to pay rent for a good looking and well functioning home.
“REIWA members are reporting that while overall enquiries had dropped off, well-presented properties at realistic prices are still being leased,” Collins said.
“They also reported that properties that offer better amenities like air-conditioning are in a better position to find good tenants,” he said. Collins also said property owners needed to be realistic about what could be achieved, but also suggested a long-term view of Perth’s growth needs to be kept in mind.
“As more large scale multi-residential developments come onto the market, we will see an increase of rental stock in the short-term, providing tenants with plenty of choice.
“However, over the long-term with population trends forecast to increase, the Perth rental market should adjust.”
Mr Collins said the decline in rent prices was having a positive effect on housing affordability for tenants in Perth. One factor that can be attributed to the decline in rent prices is the significant drop off of migration into WA, with the most recent ABS data showing that the state had seen a net interstate loss in the year to March 2015.