March 16, 2016
Inner North Property Management News
Recent data is showing tenants are happy to pay more in the Inner Northern Suburbs for well-maintained properties :
With concern to the 1-2 bedroom apartment market – An influx of new apartment development in the Inner north has created greater choice for prospective tenants, this does not mean that the more established 1-2 bedroom apartments have stopped gaining interest, It does however mean that there is more of an importance to update and improve established apartments to compete with new apartments on the market.
One of benefits of an established apartment is, in most cases the number of apartments do not exceed 12 per block, this is not the case with new apartment developments therefore there is indeed an opportunity to compete with the new apartment market by placing importance on maintaining an established apartment not forgetting also maintaining the grounds. Where a body corporate is involved, we should work together to stay on top of grounds maintenance, after all presentation is very important to tenants these days.
With regard to Houses – the rental housing market in the inner north is made up of family’s looking for a location that is close to what Melbourne has to offer, lifestyle and schools. The professional singles/couples seeking simple transport access into CBD and surrounding suburbs & lifestyle and of course the share house / student market.
Taking into consideration the recent feedback from the majority of our clients preferring either a family’s or professional renting their home, it is important to consider, again if financially viable, creating a comfortable living environment with modern comforts.
The last thing an agent wants to do is decrease rental due to no interest, we feel it is our job to inform a Landlord of possible improvements that could continue to generate a consistent or increased income stream for the investor.
Great news for larger properties in the Inner North : We are seeing higher demand for large homes in the area as employment opportunities become available in Melbourne to international and interstate transfers and also locals looking for particular school catchments zones.
These larger homes are being jumped on very quickly, school zoning has become highly important (Northcote High School in particular). A quantity of these homes are not hitting the market and being leased prior to being openly advertised by utilising and being proactive with our prospective tenant resources.
In summary : If it is financially possible the benefits of renovation or selectively updating your investment property will result in a content tenant, a longer tenancy commitment and more options to the investor.
For vacant properties, the importance on updates to your investment property definitely increases interest level, equating to less time on market, higher/steady rental income and a consistent income stream.
For tenanted properties, if you are thinking of making improvements to your investment property consider planning to attend to these improvements while a tenant is occupying the property, the benefit here is that there is no real loss to rental income.