Landlords – consider the pet-friendly route to a 10-15% rent premium!
If you have an investment property then you have an interest in the real estate market. If you have an interest in the real estate market then you’ll be fully aware of changes in recent months. The long-running seller’s market suddenly switched to a buyer’s market with prices sliding steadily over a few months.
A buyer’s market in sales translates to a tenant’s market in rentals. The pool of potential tenants decreases as more people opt to take advantage of falling prices and buy their own home. Add to this the enormous number of new apartments going up everywhere you look and supply is beginning to outstrip demand by some margin. Tenants have more to choose from and they’re becoming more selective and demanding.
In suburbs across every Australian capital city, and in almost every major holiday destination along the East Coast, you can find a short-term rental property listed through Airbnb.
Most of these short-term rentals are being listed by the property owner, either an investor or owner-occupier, but increasingly tenants are illegally subletting a room or the whole property, unbeknown to the owner.
Given the high property prices in many cities, particularly in Sydney and Melbourne, many first home buyers are purchasing property in areas where they can afford but choosing to lease it out and live elsewhere. This has meant an uplift in the number of first-time landlords in the market.
Like many Firsts, becoming a landlord is both exciting and daunting. It’s a great way to earn ongoing income and take advantage of some of the tax breaks offered on property expenses.
But the business of being a landlord involves risks and responsibilities and requires active management, as well as the very important decision on who will manage the property.