Market heats up as tenants get competitive for rentals

As rental prices increase throughout Knox, tenants are offering to pay more than the advertised price to secure a lease

13 Quixley Grove, Wantirna

TENANTS competing to secure a rental property in Knox have been offering to pay more than the advertised­ price.

Agents report that prospective tenants have been increasingly offering­ to pay above the advertised price as more people move into the area and demand places pressure on supply.

The heightened competition has also pushed up rents.

Barry Plant Wantirna rental department manager Adele Clausen said people moving to the area to take advantage of its proximity to schools, shops and public transport were increasingly having to pay more.

Her agency had increased rents for all rental properties by about $5 to $10 each year for the past five years. The agency received many inquiries for rental listings across all Knox suburbs, with properties typically leased within one to three weeks of being advertised.

Although much more marginal, rent increases tended to mirror growth in sales prices, she said.

“It doesn’t go up significantly like sales prices,” she said.

But when sales prices increased it was common for some people to turn their attention towards leasing rather than buying.

“When retail prices go up we have more people moving to the rental side of things,” she said.

Ms Clausen said her agency leased a four-bedroom home at 13 Quixley Grove, Wantirna, within a week of it being advertised.

The property was listed for $520 a week and received 11 applications from prospective tenants. First National property manager Daniella Korosa said her agency found Rowville properties were getting particularly good rental returns­.

Tenants were generally willing to pay more for newer properties, she said.

No particular type of dwelling was more in demand than others, as tenants came from a range of backgrounds and had different requirements, Ms Korosa said.

Young families, retirees and university students sought to rent in Knox, with properties usually leased long term.

The age, type of dwelling and how it was presented were the key factors in determining rents, more than a property’s suburb, she said.

Rebecca. DiNuzzo

@news.com.au