With the majority of lease renewals now rolling out, many would have noticed a slight (or more than slight) increase to their weekly rent. This aligns with 73% of experts in the Finder RBA Cash Rate Survey™ predicting significant rental hikes.
As the country opens its borders to interstate and international travellers, economic conditions are expected to improve, rental demand will likely climb. This in turn will reduce the number of vacant homes, pushing rental prices up.
Rental increases are expected to affect approximately 32% of Australians or 2.6 million households.
Kym Cheney, Head of Property Management at O’Neill Estate Agents says that she has never seen anything like this in her 14 years of experience.
“Obviously now is a great time for homeowners to sell, however those who are selling may not find a suitable home to buy, therefore they are also joining the rental market. So, we expect 2022 to be extremely competitive with former owners, interstate and international tenants all looking for properties. I have never seen anything like it.”
Kym Cheney, Head of Property Management at O’Neill Estate Agents
Dr Nicola Powell, Chief of Research and Economics at Domain, believes that in this kind of landlord’s market, landlords can be more particular about the tenants they choose.
“In that kind of market, a landlord will want to pick the crème de la crème of tenants … a landlord can be choosy, more particular of whom they’re letting in, and that makes it really tough, particularly for somebody on a lower income, or perhaps in a less stable job,” Dr Powell said.
So, if you are a tenant, can you negotiate your lease renewal and a rental increase?
As a tenant, you have the right to negotiate rental increases with your Property Manager if you do not consider it reasonable; however, in the current market what was once considered unreasonable is now within reason.
“A $50 per week increase was once considered unreasonable, now it is quite normal,” says Kym
“Rent is increased based on the current market value, so you must find some comparable properties in your area to compare your rent to.”
At O’Neill Estate Agents we do property management a little differently to most. Call Kym today to find out how we can help you.
Kym Cheney
0438 760 866