Welcome to the first Property Management and Investor Update for 2021.
The rental market continues to perform well and we are seeing a very high demand for quality, modern properties. With many tenants now working from home and spending an increased amount of time working and living in the same space, there has been a shift in what tenants are looking for when searching for a new home. Many tenants are now seeking renovated and modern properties with lifestyle options close to beaches, cafes and shops.
With demand for houses at a high level, we are also seeing extremely low supply and finding any houses that hit the market being hotly contested by quality tenants.
The other area currently performing very well is the modern two bedroom apartment market on Dee Why Beach and surrounds. We are seeing quality two bedroom properties leasing within the first two open homes, for above the asking price.
We foresee that the rental market will continue to perform well for the next few months at least, and continue through 2021.
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COVID Evictions moratorium + Extended Notice Periods ending
The NSW governments COVID-19 rental eviction moratorium is due to expire on March 26.
Along with the restrictions on evictions for rental arrears, the Government also extended notice periods to 90 days for ending a fixed term lease and periodic leases. We will wait to hear in the coming weeks if there are any changes to this date and will continue to keep you updated.
The Real Estate Institute of NSW (REINSW) has acknowledged the NSW Government’s intention to protect tenants in rental arrears beyond March 27 but has urged the Government to provide clarity on what “support” for landlords and tenants actually means ahead of the looming deadline.
This week, the NSW Government announced its intention to introduce legislation that will see tenants and landlords “supported” to enter a repayment plan for COVID-induced arrears – with tenants only to be evicted if they fail to meet the terms of that plan. However, REINSW CEO Tim McKibbin says it’s unclear what this support entails, given there has been no support for landlords to date.
“At face value, this appears to be an appropriate attempt to respond to the improving economic picture and resilient employment market. But, as ever, the devil will be in the detail,” Mr McKibbin says.
“Consumers and the real estate industry now await the fine print of the revised scheme, including new information on notice periods, repayment plan guidelines and other specific details in order for tenants, landlords and property managers to ensure they’re being compliant.
“The issue this announcement intends to solve is unclear. Tenants who are seeking assistance range from people who have sought a small reduction in rent, which the landlord has absorbed, to those who have no means to pay their rent whatsoever, leaving the landlord completely out of pocket.
“The Residential Tenancies Act already contains hardship provisions. It is unclear as to how any new legislation introduced by the NSW Government will solve problems which the existing provisions are unable to deal with.
“Ideally, any new legislation will pave the way for tenants to feel secure while ensuring landlords receive the income to which they are entitled, and which they depend upon.
“But we all need clarity on the fine detail urgently because the current arrangement ends in a few weeks, and Government intervention can create a bureaucratic burden on tenants and landlords,” Mr McKibbin said.
If you are thinking of making changes to your tenancy in the coming weeks please ensure that you get in touch with your Property Manager.
Our Property Management results 1/1/2021 – 1/3/2021
Leased: 41 properties
Number of open home inspections: 1,787
Average rental price: $768.00 PW
Average DOM: 15.9 days
Leased: 36 properties
Number of open home inspections: 1,170
Average rental price: $704.00 PW
Average DOM: 13.9 days
If you have any questions or would like to chat to a member of our property management team, please contact us on 9949 7077.