Sydney rental market demand remains high through June
Demand for residential properties to rent in Sydney continued to be strong through June 2013, according to the latest vacancy rate data released by the Real Estate Institute of New South Wales (REINSW).
The REINSW reported yesterday (July 18) that the vacancy rate in metropolitan Sydney last month was 2.1 per cent.
Within the metro area, there was some movement, with the rental market in the inner suburbs loosening slightly (up 0.2 per cent to 2.2 per cent), and tightening modestly in the outer suburbs (down 0.2 per cent to 2.1 per cent).
These changes cancelled each other out, however, and when added to the unchanged rate of 1.9 per cent in the middle suburbs, produced a picture of steady demand for Sydney rental accommodation over the last few months.
REINSW president Christian Payne had mixed reactions to the lack of change in the metro rental market.
"While we are pleased that vacancy rates have not declined, we were hoping for a continued increase in availability in what is still a very tight market," said Mr Payne in a statement.
A low vacancy rate is generally good news for property investors, as it can guarantee a level of tenant demand important for certainty in residential real estate investment.
Increased demand can also contribute to rental price rises, as the reduced availability of accommodation options exerts its pressure on the market.
If you're thinking about investing in Sydney real estate and setting up a rental income, vacancy rates can be a helpful guide to where demand is highest among potential tenants.
Getting the best return from your rental investment is all about keeping it vacant for the least amount of time.
Not only do you lose rental income while your property is untenanted, but each time you need to find new tenants will require time and effort on your part.
Property managers can help with this issue in more ways than one.
Firstly, they can take care of advertising your property and then interview and vet potential tenants.
Their work here can improve the likelihood that the tenants you get will be reliable and unlikely to move on to another property quickly.
Furthermore, by providing a prompt and responsive service to your tenants, no matter what issues may arise during their tenancy, property managers can keep renters happy for longer – which will keep the owner happy too.