Melbourne rental market swings to favour tenants
RENTING? Then there’s cause for optimism as tenants gain the upper hand in Melbourne’s housing market. Here’s how to really seize on your advantage.
TENANTS are gaining the upper hand in Melbourne’s rental market as letting prices stall.
Weekly rents crept up just 1.3 per cent for houses and 1.4 per cent for units last year, according to CoreLogic RP Data.
In the last quarter, there was no change to the $385 per week median house rent, while the median weekly rent for a unit fell to $360.
IS YOUR RENTAL HOME A DEATHTRAP?
PLAN AHEAD TO TAKE THE STRESS OUT OF MOVING
A glut of choice for renters was reining in price growth, according to Wakelin Property Advisory director Richard Wakelin.
And the scales would remain tipped in tenants’ favour for some time, as investors continued to shore up the supply of rental stock, he said.
He shared his tips for renters to take advantage of the current market:
ALREADY IN A LEASE?
1. Don’t be too passive. Do your homework if a rent increase notice comes through to see if similar properties are available and check the going rent.
2. If the landlord is pushing for a rent rise, check the amenities in similarly-priced properties. Ask for an upgrade, such as a new stove or airconditioning, to bring the property up to the same standard.
3. Don’t overplay your hand. If you like the property and it meets your lifestyle needs, weigh up the cost of moving before starting to negotiate.
LOOKING TO SIGN A LEASE?
1. Know where conditions are in your favour. For example if you’re looking for a modern unit in Southbank, Docklands, the CBD or along St Kilda Rd, you’re going to have a lot of choice.
2. Do your homework. If you can find two or three properties you would happily live in you can push a bit harder.
3. Don’t be afraid to ask. Lower rent or an additional amenity such as new appliances or carpet are options. Consider locking in a rent freeze for 24 months, rather than sticking to the traditional 12-month cycle.