Is it really time to be asking for a rental decrease?
This attached recent article from Jessica Irvine of sometime ABC fame, is suggesting renters should now be asking for rental decreases but is it really time to be asking for a rental decrease?
I believe that while there is some truth in the story, it is not the time for a huge number of renters to be asking for a decrease.
Read more here: http://www.smh.com.au/money/why-its-time-to-ask-for-a-rent-reduction-20161107-gsjq6i
The data she uses is all sourced from NSW, particularly the NSW Tenant’s Union and of course, this data seems to support the fall in rentals in Perth and the likely fall in rentals in inner Brisbane and Melbourne!
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I’d suggest to any renter looking for a new property or a new lease that they use their own common sense when negotiating. In Sydney and Melbourne in particular, yields for landlords (yield being rent paid) are now at their lowest ever. Landlords are not inclined to lower their returns even more. Common sense, in this instance, just means having a look around your area and on real estate web sites for comparable property for rent. If you are looking at a unit, then perhaps in some areas you may find that there are many similar units available for rent. In the knowledge that you can easily find another place if necessary at maybe a lower rental, then you MUST try and negotiate a decrease on your current rent or try for a decrease in the advertised rent. If the landlords are desperate, they will negotiate.
If you are sitting in a nice little townhouse or villa, or even a house and land close to the city or even in the middle suburbs of your city, you may find that you are lucky to have the property you are currently renting. There are many areas with plenty of rental properties, but make sure you are comparing apples to apples. It can still be very difficult in many areas of all our east coast capital cities to find the type of home you wish to rent, particularly if it is not a unit, and if there is a scarcity, be prepared to pay for it. Your landlord will easily find someone else who is prepared to give them what they want if you won’t! Maybe it is not time to be asking for a rental decrease.
If you want to know more about rental yields in certain areas or discuss buying new property investment, contact: [email protected].
