Property managers to rethink game plan as renters dig in

With 1.6 million Australians renting nationwide, the survey found that more tenants were beginning to see their rental homes as long-term prospects rather than short-term residences.

According to the data, 24 per cent of renters reported they planned to stay in their current rental for more than five years, while around 13 per cent intended to stay in each of the one-, two-, and three-to-five-year timeframes.

In contrast, 35 per cent of tenants said they were unsure of their long-term plans, the largest response in the survey.

As the market tightened, CBRE head of research, Pacific, Sameer Chopra, said tenants were beginning to see the value of long-term stability.

“With nearly a quarter of renters planning to stay put for five or more years, households are viewing renting as a long-term solution,” Chopra said.

Similarly, NU Management founder Grant McKay said the sentiment aligned with what he had been witnessing on the ground, as tenants were looking to stay put for longer periods.

He said tenants were often prioritising the opportunity to remain settled and avoid re-entering the competitive rental market, a trend that extended to all renters.

“We have always experienced ‘family’ tenants requesting longer leases, typically 24 months for larger homes, but we are starting to see that request more and more for lower-priced apartments.”

The preference for longer leases was supported by 53 per cent of survey respondents, who said that even if their rent were to increase by $50 per week, they would stay in their current dwelling.

McKay said landlords needed to ensure that they found a property manager who planned around the current market to secure the best returns.

“When it comes to legislation, property managers need to talk strategy with the owner of the security of a 24-month lease versus exposing their property to a six-month lease,” he said.

“Complexities with ongoing changing legislation combined with changing trends mean that landlords deserve property managers that remain up to date and step up to more advisory roles rather than reactive audit takers.”

Amenities that drive interest

In addition to the driving forces of price and location, amenities have begun to play a larger role in renters’ decision-making.

With 42 per cent of renters prioritising location and price first, Chopra said the survey showed a greater focus on amenities that support tenants’ lifestyles.

“Beyond price and location, rental choice is anchored by core essentials like security, parking and pet-friendliness and increasingly, on stability,” Chopra said.

In total, 49 per cent of renters said security was the most important amenity in an apartment, while 46 per cent valued parking as a key feature.

Pet-friendly and laundry facilities were ranked as the next most important, ahead of leisure-focused spaces such as swimming pools, gyms and outdoor common areas.

The report found that “pet” was the most-searched keyword among renters, followed by “furnished”, “air conditioning”, “pool”, and “undercover parking”.

Location still reigns supreme for tenants

Despite tenants seeking new criteria, REA Group senior economist Anne Flaherty said location remained the primary deciding factor, with dwellings near the CBD attracting greater demand.

“Proximity to work, schools and transport are driving suburb selection, with established inner-city locations continuing to dominate search activity across Sydney, Melbourne, and Brisbane,” Flaherty said.

“Rent growth over the past decade has been significant across most markets, and renters are feeling it.”

The report showed that in Sydney, the eastern suburbs and the Inner West were the most searched areas for renters, with Surry Hills, the City of Sydney, and Paddington leading the way.

The trend was consistent across Australia’s other largest capitals, with Melbourne’s Richmond and South Yarra and Brisbane’s New Farm and West End all proving to be the most commonly searched in their respective markets.