Property Management Market Wrap | Autumn 2023

PropertyManagementMarketWrap

anotefrom TaylahCagalj

Just like that we are already one quarter down for the year, Easter is upon us and Christmas feels like a distant memory. It's been a whirlwind for the Property Management team over the past few months. While the dust settled for the sales teams on the back end of COVID, rentals had the opposite effect.

We have reached record low vacancy rates for the RT Edgar network, stock is minimal and rents continue on an upward trajectory.

While it's been a difficult time for renters to secure accommodation, rental providers and investors are capitalising on high rental yields and soaring demand.

We hope you enjoy this quarter's edition of our Property Management Wrap

Business Development Manager RT Edgar Toorak

Investors are reaping rewards in Melbourne’s innersoutheast suburbs where the rental market is flourishing The City of Stonnington offers huge opportunities for investors and rental providers who are taking advantage of the region’s high rental yield and robust capital growth prospects

High demand and low supply of properties are driving up rents, and investors are securing quality renters, longer leases and favourable returns.

The availability of homes to rent is at a record low across all Stonnington suburbs, according to RT

Edgar Toorak Business Development and Leasing Manager Taylah Cagalj

Vacancyratesplummetto1%

RT Edgar Vacancy rates have plummeted to 0.9 per cent, the lowest in 16 years for the office, and the rate across Metro Melbourne has dived to 2.3 per cent, according to the Real Estate Institute of Victoria

Properties priced between $350 to $750 are attracting large groups at open inspections and many are leasing after the first visit, Ms Cagalj said.

Modern and well-maintained dwellings are highly sought after, particularly those priced from $350 to $750 per week are drawing multiple offers and snapped up within days.

Melbourne’s median rent price has seen a 17.7 % rise to $644 for houses and a 25.7% rise to $501 for units in the months since January 2022.

SQM Research

There is pent-up demand for larger updated family homes priced from $2000 to $4000 per week, especially in Toorak, Armadale and South Yarra, where they are in low supply

Welcometothisissueof MarketWrap,dedicatedto keepingyouinformedabout currentconditionsinthe rentalpropertymarket.

maintenanceandnearamenities."

Ms Cagalj’s advice to those wanting to rent in this highly competitive market is to do their homework and consider adjusting their expectations

“To increase your chances, you may have to compromise on location or extend your search to surrounding suburbs,” she said.

“You need to be flexible in all areas, including the features of the home, such as a study, second bathroom or garage ”

To successfully secure a property and avoid delays, application forms have to be fully completed and up to date, ID checks done, references in order and work emails provided

“Anything extra that you can give us will help, including telling us why you are looking to rent and why you would make a great tenant,” Ms Cagalj said. “Put your best foot forward, introduce yourselves to agents at opens and make yourselves known ”

Head of Property Management Darren Pearce expects the buoyant rental market across Stonnington to power through the coming months, while there is a limited supply of rental properties in the area

"We understand the market and can assist with all aspects of rental management, including new legislation."

Taylah is an area specialist in property management and can provide valuable information to both investors and renters. For more information or to arrange a rental appraisal, follow the link below

RentalAppraisal

"Rentersarepayingapremiumfor homesthatarerenovated,low-

REIV VacancyRates

NotableLeased Properties

28ClendonRoad Toorak

Leasedfor$1980.00perweek

This Hollywood inspired residence designed by Edward Billson of the Walter Burley Griffin School is set on 765sqm of land with inground heated swimming pool surrounded by the most luscious and beautiful gardens perfect for entertaining and is situated in one of Melbourne’s most prestigious addresses just moments from Loreto Mandeville Hall and Lauriston Girls School, Malvern Road trams, Toorak Station, Orrong Park and charming Beatty Avenue, within minutes to Hawksburn, Toorak Village and High Street Armadale

Comprising a wide entrance hall, an expansive and vogue-worthy family sitting room bathed in natural light via detailed glass windows, second sitting room/home office with open fireplace and leafy outlook, dining room and family/kitchen meals area with Miele appliances. Further four bedrooms, two bathrooms, versatile studio/gym, laundry, alarm, video intercom, heating/cooling, auto gates, gas heated pool and storage

56ClarenceStreet MalvernEast

Leasedfor$1600.00perweek

Set in a prime leafy pocket of Malvern East, right on the edge of the prestigious Gascoigne Estate, this grand 1920's residence provides first class family living and entertaining with an expansive fivebedroom layout over two levels and has also featured in the TV series 5 Bedrooms

Showcasing a charming period façade the property comprises large formal living and dining rooms, a sundrenched North-facing family and meals area, multiple outdoor entertaining precincts, substantial well appointed kitchen, study, three bathrooms, double garage and generous storage. There is also a fully self-contained studio/6th bedroom that can double up as a home office or granny flat (ornamental fireplace only throughout the property)

17aMoorehouseStreet

Armadale

Leasedfor$2600.00perweek

Stunning architecturally designed state-of-the-art home with private lift offering three bedroom plus study/guest bedroom accommodation, expansive open plan living areas, seamless indoor/outdoor entertaining and abundant Northern light on a landscaped low maintenance parcel with own street frontage

An innovative façade introduces stunning open plan living and dining spaces with gas fire and separately zoned sitting room with media storage each designed to capture northern light and retract to a landscaped feature courtyard, superb marble kitchen equipped with Miele appliances, Qasair range, integrated Liebherr fridge/freezer and zoned butler’s pantry, generous study, large main bedroom featuring extensive walk-in robe/storage, lavish ensuite and outdoor terrace, two additional bedrooms with robes sharing central ensuite bathroom, fully equipped Miele laundry.

2KilsythAvenue

Toorak

Leasedfor$1700.00perweek

Private elevated and ground floor residence with luxurious gardens in a stunning court location minute from Toorak Village. Designed generously in 1930s traditions this huge floorplan over 400 sqm internally of living space all facing north, enjoys excellent natural light, super spacious rooms, good circulation throughout and resistant to noise and weather due to its triple brick construction This beautifully maintained property has two or three generously large living areas, large modern kitchen with BOSCH appliances and ample storage in kitchen and a large separate dining room. A beautifully presented courtyard enjoys North, East and Western aspects which enable regular outdoor dining

Legislation Update

Reminder

A reminder to all rental property owners to adhere to all safety and minimum standard checks

Electrical Safety

On 29 March 2023, the electrical safety rental minimum standard commenced.

The electrical safety standard requires that rental properties must have modern style switchboards, with circuit breakers and electrical safety switches installed Electrical safety switches are correctly known as residual current devices (RCD, RCCB or RCBO).

Rental providers are responsible for ensuring their rental property complies with the electrical safety standard by engaging a licensed or registered electrician

Rental providers are encouraged to engage an electrician early to ensure that they are meeting their legislative obligations.

Ifyourrentedpremiseshasacircuitbreakertypeswitchboard

The rented premises can meet the new minimum standard if the electrician adds circuit breaker components to the power outlets and lighting circuits, without the need to add to or modify the circuit protection to other circuits (such as fixed cooking equipment, hot water units or air-conditioning circuits). The circuit breaker components include: an overcurrent circuit breaker and a residual current device (RCDs), or an overcurrent circuit breaker and a residual current operated circuit-breakers without integral overcurrent protection (RCCBs), or a residual current operated circuit-breaker with integral overcurrent protection (RCBOs).

Ifyourrentedpremisesdoesnothaveacircuitbreakertypeswitchboard

Some properties do not have circuit breaker type switchboards, such as older properties that have a panel and fuse board or a federal fuse board With these older type fuse boards, an electrician may not have the option of adding circuit breaker components (such as RCDs, RCCBs or RCBOs) and may have to replace the entire switchboard to ensure the rented premises meets the electrical safety standard. In this case, circuit breaker components will be required for all the circuits at the switchboard, including fixed cooking equipment, hot water units and air conditioning circuits

RentalProvider Information

With winter almost upon us, here are some tips to help ensure that your property is safe and well maintained:

Gutters - We recommend that gutters should ideally be inspected and, if necessary, cleared at the end of autumn each year. Regular inspection and cleaning will prevent water overflowing from blocked gutters, which can cause water damage to the interior and exterior of your property

Roof inspection - Property damage caused by leaking roofs can be costly to rectify and so early detection and repair of problems such as broken tiles, signs of moisture, water staining and damaged or rusted flashing is essential, particularly for older properties

Service heaters - As we head into the cooler months, we recommend that you have your property's heater/heating system checked by a licensed professional to ensure that they are running efficiently and importantly that they are safe, as carbon monoxide leaks can be deadly. It's a good idea to get these checks done before the onset of winter, as there can be delays in booking qualified tradespeople at this time of year. For those properties with a split system, we recommend periodically cleaning the filters to prolong the life of your system and avoid motor burnout.

Note: It is important to remember safety checks are separate to servicing and maintenance of systems.

Garden Maintenance - In addition to regular maintenance we recommend trimming tree branches that overhang the roof, windows or driveways as these present a potential hazard and can cause property damage in storms.

Security - It is strongly advised security is prioritised for all properties A property will be favoured by renters if the adequate systems and measures are in place. Consider cameras, dead locks, security screens, additional locks, locks on window , alarm system and sensor lights

8ideastohelpimprove yourrentalreturn

A well presented property will attract great renters, without a doubt As a rental provider, you may be keen to make improvements that will increase the worth of your rental property and create a welcoming, functional space that tenants will love to call home

When it comes to property management, however, you need to avoid overspending on things that won’t truly add value. We look at some rental property improvement ideas that will help maximise the return from your property while delivering the most bang for your buck

1. Kitchen Makeover

Kitchens are the hub of the home and improving them tends to yield a better return on investment in the long run Focusing on a few key things can change the overall look without completely remodelling. Painting or re-laminating cabinetry doors and updating the hardware can give your kitchen a whole new look and feel Depending on the age of the property, a new sink might be required to modernise the space.

2. Beautify the Bathroom

Start by spot fixing areas like grouting and silicone to give the wet areas the refresh it needs Update your cabinets with a lick of paint and new hardware rather than putting in a whole new cabinet. Installing stylish faucets and shower heads might just be the statement piece needed to change the whole look of the room

3. Replace Ageing White Goods

Setting up your property with a dishwasher, washing machine and dryer can be a real plus for tenants who dislike having to lug these items from one place to the next However, if they’re outdated and visibly look like they've been through years of use they can really detract from a property’s desirability. Nowadays, it’s easy to get great deals on appliances, so check the condition of your white goods and replace them if necessary

4. Walls, Floors and Curtains

Making your property more attractive to renters and increasing its value needn’t involve a major kitchen or bathroom renovation Repainting, re-carpeting and replacing damaged or disintegrating blinds and curtains are some of the most costeffective and quickest ways to get everything looking brand new again

5. Open Up Dark and Cluttered Spaces

Brightly lit, spacious living areas are understandably high on most renters wish-lists. Eliminating a non-structural wall, opening up a small archway or getting rid of old or overly bulky built-in joinery can work wonders to give houses and apartments extra space A well-positioned sky light could add lots of value as well

6. Create an Outdoor Haven

Having an attractive outdoor area to escape to is a highly sought-after feature of a property If your rental property has a yard, deck, patio or balcony, ensure it’s in tip-top condition and that you ’ ve got the right contractors in place to make sure it’s regularly maintained With driveways, lawns, plant beds, borders and fences, a little can go a long way to making the property look desirable.

7. Make it Pet Friendly

Pet ownership has skyrocketed in Australia in recent years and it’s no surprise that more renters are looking for homes where their pet buddies are welcome and have provisions in place for their stay Allowing pets in your property will put you ahead of the game and potentially allow you to charge a higher rental. Small changes like fixing fences and swapping carpet for petfriendly flooring are also great ideas

Add More Storage

ck of storage can be a deterrent for many, and finding ver ways to include extra storage space can add value to ur property and help it to stand out Consider installing builtin the bedrooms or adapting dead space by fitting it out h cupboards or shelves

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