Although rent prices across the state have been on a downward trajectory the last couple of years, the rate of decline has begun to slow in recent months - a pleasing sign for the market.
However, for as long as listing stock in the rental sector remains above the long term average, rent prices will stay relatively subdued.
The good news for property investors is that real estate is cyclical in nature. Although landlords don't currently enjoy the dominance they experienced during the boom period, property investment is still a smart decision. And thankfully, interest
rates on borrowings continue to sit at record low levels, mitigating any short term financial discomfort you might normally experience.
Listen to the advice of your property manager
When pricing your property and preparing it for lease, I can't stress enough how important it is to listen to the advice of your property manager.
Tenants are out there. The very fact leasing activity in Perth was up 23 per cent in December 2016 compared to December 2015 proves just how active they are.
Meet the market
In order to secure a tenant, you must meet the market. Be sure your property appeals to the widest range of tenants possible as there is lots of competition out there, with (at last count) 10,476 listings for rent in Perth. Speak to your property manager
about the features and extras tenants are drawn to.
If you have a tenant leasing your rental, you should make an effort to retain them. In years gone by when the rental market favoured landlords, most would have been reluctant to agree to a rent reduction request.
Nowadays, if your tenant requests a reduction, you would be wise to negotiate with them. Less rent per week is better than having a long vacancy period with no rental income at all.
Be flexible
It is also advisable to be flexible with the conditions you put on your rental. For example, not allowing tenants who own a pet to rent your property can deter people who would otherwise be interested.
You'd be better off considering tenants with pets on a case by case basis, secure in the knowledge the bond and pet bond (and landlord insurance) will be there to cover any pet-related damage.
2017 - the year of opportunity
With signs emerging that the rental market has begun to stabilise, I believe 2017 will be the year of opportunity for current and prospective investors. Compared to investment markets on the east coast, yields in Perth are more appealing and property
values have held up comparatively well given the broader economic conditions in WA.
If you own an investment property, I advise you to ride out this temporary bump in the market.
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