The real estate industry is ever-evolving, especially the rental market. That's why it's important for landlords to stay on top of any changes, so they can continue to adjust what they're supplying based on general demand.
With capital city median weekly rents taking a dip in most of Australia, this is what landlords should know in order to stay ahead in a very competitive market.
1. Good apartment design is now more important than minimum size
Over the last 18 months, the Property Council of Australia has seen minimum apartment size ruled out. Good quality rooms are now judged on how space is being used rather than how much of it there is.
Asher Judah, Acting Executive Director of Property Council in Victoria, says apartment size regulations don't work. So rather than focusing on the square footage, landlords should be looking at the design of their apartments or homes for rent.
2. Capital city median weekly rents take a dip
July's CoreLogic statistics show a drop in rent in all cities except for Melbourne and Hobart. Melbourne even shows a modest rise of 1.2 per cent over the past 12 months. For the rest of the country, the capital city median weekly rents are at their lowest since December 2015.
It's important for landlords to be aware of this trend. Considering the rental market is strongly determined by the ability of the renter to pay rent, employment plays a big part in finding tenants for your property.
With the overall unemployment rate noticeably higher than in recent years and the private sector wage growth currently at its lowest since 1998, big parts of the rental market are left unable to afford higher rents.
3. RSPCA calls for laws to keep pets without the landlord's approval
Research from the Animal Health Alliance shows that 63 per cent of Australian households include a pet. Still, these pet-owners find it hard to find pet-friendly properties.
There has been a big push recently to allow tenants to have pets on their rented property without getting approval. While landlords typically prefer to restrict the right to keep pets, the RSPCA in Victoria called for laws to change this.
According to the RSPCA, 20 per cent of animals surrendered are a result of the 'no pets' rule on the tenant agreement.
For landlords it could be beneficial to remove this rule from the tenancy agreement, considering many pet-owners would likely be willing to pay a higher rent in order to keep their furry friends.
By adjusting to these changes, landlords with rental properties in Melbourne can definitely stay on top of their rental game.