Melbourne tenants are again having to battle it out for a roof over their heads, as competition in the city’s rental market heats up.

CoreLogic’s Research Director Tim Lawless noted Melbourne’s unit market is now benefitting from higher demand as more domestic renters seek out affordable housing options in the unit sector. Demand for Melbourne unit rentals is likely to increase more sharply since borders opened up, with returning international students, migration from other states, and people moving back out of family homes driving frenetic conditions.

 

 

Tenants struggle to find homes as rental vacancy rate hits new low

 

We have seen that vacancy rates have continued to decline, suggesting that the empty pool of rentals will continue to shrink and rents are rising again. Tenants who were struggling in a fiercely competitive rental market last year are likely to find the situation has only worsened in the early days of 2022.

Melbourne’s vacancy rate has nearly halved since January last year and the number of available rentals has been slashed by 41.8 per cent. Some of the suburbs worst hit by empty rentals during the COVID-induced exodus from the CBD and surrounding areas had improved markedly in recent months.

Ironfish Research recorded 85 properties under the lease. Each property received an average of 58.8 inquiries and 14.2 applications. Some properties even received more than 200 inquiries, and as many as 74 applications, which shows that the market is booming.

 

 

What to do in a LANDLORD's market? 

1. Do your homework. Make sure you understand how much rent prices are for similar properties in your local area. Check that the area is suitable, then contact the agent and let them know it’s exactly what you are looking for and request an inspection as soon as possible. Even if it’s advertised as open on Saturday you might get a private inspection if you show that you are a genuine renter ready to sign up.

2. Have your documentation ready. Your updated payslip, bank statement, written references. Provide as much information as you can to show that you would be a suitable renter. Just like a resume, you want your application to stand out.

3. If you consider renewing a lease, contact your Property Manager to know your landlord’s plan. Let the landlord know you love the property and would love to extend your tenancy. Your landlord will likely want to keep you if you're a good tenant, as finding new ones are an expensive, lengthy process that will result in lost income for landlords.

 

At Ironfish Melbourne, we're committed to providing proactive advice to help our residential rental providers get the most from their investment property. Whether you already engage in our services or are on the lookout for a property manager, we encourage you to get in touch with one of our agents for more information. 

 

Source: Corelogic Property Data Analytics