There is a surplus of rental stock on the market, with the number of available rental properties up by 10 per cent from the last quarter across the east coast, The Agency has said.
But Maria Carlino, The Agency’s national director of property management, said that this should not be cause for concern.
“We tend to see a spike in movement as people resettle prior to Christmas holidays,” she said in The Agency’s summer 2018–2019 Property Report.
“Home owners purchasing a new property to live in, while still holding onto their existing home, [are] on the rise. They will often rent out the new purchase on a short-term lease in the hope of gaining a better sale price down the track.”
Ms Carlino also said that short-term leases are becoming more fashionable in Sydney’s beachside areas and on the Gold Coast.
“Where investors are looking to take advantage of higher rental yields over the summer months.
“Investors should be aware the short-term rental market works differently to the long term. The property needs to be styled and furnished attractively in order to stand out from the competition. The other key consideration is taking out short-term insurance; this works differently to standard landlord’s insurance.”
Ms Carlino said that in this market, it is important to secure a new tenant quickly and be firm with expiry dates.
She said that NSW is likely to follow Victoria in adopting new rental laws.
“These Victorian reforms, which aim to make rentals fairer, include capping bonds at four weeks and allowing only one rent increase per year.”
Ms Carlino said that the Queensland government recently undertook a state-wide survey of tenants, landlords and property managers.
“The survey asks about the property’s condition and for information on how each person’s experience has been. Already they’ve received more than 40,000 responses — a lot of which have come from tenants concerned about their safety.
“This could lead to sweeping reforms in Queensland and, if it does, it’s important the government achieves a balanced view between landlords, tenants and property managers.”