Let’s Rent Monthly Property Management Update – September 2020
The Big news for this month is that the government decided to extend the Covid legislation in relation to residential and commercial tenancies by 6 months. It was due to expire mid next month so will now expire mid-March 21.
There are several points that we need you to be aware of. As many of you may know, JobKeeper and JobSeeker were reduced last week and this may lead to further requests for rent relief. This is of course one of the effects of the extended legislation. When tenants contact us, we will follow the same process we followed in the first phase which will be to request documentation to demonstrate net loss of household income of 25% or more. This usually means payslips prior to the shutdown in March and recent payslips.
The second thing is that the extended notice periods will continue to apply. The main one is that we must provide a tenant with 90 days’ notice to vacate at the end of their lease.
Market conditions continue to be challenging and areas with new stock are the hardest hit. The REI vacancy rate declined to 4.7% in August from 5.3% in July. This mirrored the decline we saw in our vacancy rate in August however the rate increased in September to 3.6%. Our lowest vacancy during the Covid period was June at 2.3% and the highest was May at 5.4% which reflected the change in our ability to show properties that were tenanted.
Six month average: 3.3%
REI Vacancy Rate Inner Sydney
Six month average: 4.6%