Let’s Rent Monthly Property Management Update – July 2020
We’ve entered this month on a relatively positive note for property management.
Thankfully we are seeing the rent relief requests and negotiations easing which we are all finding a relief…. I know many of our clients have found these negotiations challenging too so thanks so much for your understanding and patience.
I talked about redundancies last month but no new ones popping up so that is certainly a positive sign for the time being.
The 60 day stop on termination notices expired 13th June so we are now able to issue termination notices for non-payment of rent even in situations where tenants have been Covid affected and been offered rent relief. There is still the requirement to pay rent under the residential tenancies agreement so those tenants who have chosen to pay short or not paid at all can now be taken to tribunal for redress.
As a result, the wait time for mediation at NCAT has pushed out to 6 to 8. We are doing phone hearings which is actually working well. My experience is that members are actually being a bit more sympathetic to landlords and even property managers too!
At Let’s Rent, we have smashed our vacancy rate by nearly 50% to 2.3% this month!
I must congratulate Lochie who heads up leasing and Nik who takes care of our new business. They have been driving the number of inspections and pushing applications through quickly. We really hope to be letting you know next month that vacancy is lower again.
The May REI vacancy rate for Inner Sydney increased as expected and finished up at 5%. Conversely the REI vacancy rate in Outer Sydney declined from 3.1% in April to 2.7% in May. My REI colleagues are from varying geographical areas and the feedback from them is that regional and outer Sydney areas are doing ok. Conversely the vacancy rate close to the city is the highest. Sydney CBD has the highest vacancy by far at 14.8% according to SQM Research.
Six month average: 2.6%
REI Vacancy Rate Inner Sydney
Six month average: 3.5%
Thank you to those of you who have sent questions through! I really do love to hear your burning property management questions.
Don’t forget, we are always happy to check out any investments you may be interested in purchasing and provide a rental appraisal together with feedback on reliability.
Take care and stay safe.