Darwin landlords urged to move early to keep quality tenants
With vacancy rates plateauing at about 5.5%, landlords are being urged to pay attention to quality tenants to safeguard them against an empty property this wet season.
“The reality is that there is still a surplus of 1,200 rental properties in the Darwin market, the same figure as 6-8 months ago,” said Glenn Grantham, General Manager, Raine & Horne Darwin.
“The market is levelling out with virtually the same amount of new tenants and new rental properties hitting the market every month.”
Raine & Horne Darwin, for example, is averaging 20 new managements a month and 20 new leases.
“We have consistently had about 25 vacant properties at the end of each month for the past six months. Yet we’ve been putting on 20 new managements and leasing around the same number of rental properties. This means we have a lively rental market, but the new activity isn’t eating into the surplus – it’s a zero sum game,” said Mr Grantham.
With the Darwin investment market in a holding pattern, Mr Grantham warns that the duty is on landlords to be sensible about their weekly rental expectations.
“If you are putting the property into the rental market for the first time, you need to be realistic about the asking price. This means listening to your property manager and checking out online what similar properties are leasing for,” said Mr Grantham.
“If you don’t listen to the market, you’ll be an investor without an income.”
For landlords who are facing the end of a lease, Mr Grantham advises them to approach their tenant before they test the market.
“If you have a tenant who is looking after the property and paying the rent on time, approach them immediately with some carrots, such as a discount on their current weekly rent, to ensure they stay put.
“Don’t try and convince them to stay after they have decided to move on. By then it will be too late.”
The strongest rental markets continue to be in the housing markets in the northern suburbs of Darwin such as Milner, Jingili and Moil, where yields of 5.5% are still possible and vacancy rates are below the Darwin average.
“There are 350 two bedroom apartments sitting vacant in Darwin, so this market still has some way to go” said Mr Grantham.
I took the opportunity a while back to have a chat with my ‘Front Desk Superstars’ so I could find out what they thought about working at Raine & Horne Darwin.
They are the new breed who are at the doorstep of a future in Real Estate. It’s great to know that they are not just pretty faces.
So many of our senior people in both Property Management and Senior Support Roles started on our front desk.
Have a listen to what makes them tick!
Here we are back again.
These little sections are getting some great traction for the Darwin Real estate Market with our recent update that included Lenny Holt being picked up in the NT News.
Clearly people like hearing what is really happening at the ‘coalface’.
Sean is just into his 2nd year in the Darwin market as a Sales Representative and doing extremely well. He will let you know what he is experiencing out there on the weekends.
Shannon is one of our superstars who joined the Company just over 2 years ago and is working her way up the ladder to be a Portfolio Property manager. She will be talking to us about what is happening in the rental market.
Hope you enjoy.
This is a Market Update with a Property Management Spin and a bit of a Tasmanian feel to it also……diversifying!
I had the pleasure of talking with Ilyse Elphick, Assistant General Manager of Raine & Horne Darwin and Tony Easther, General Manager of Raine & Horne Kingston, Tasmania.
Take a look.
We have all known it was coming for the last month however many a tear was shed at Raine & Horne Darwin and Raine & Horne Darwin – Palmerston Branch this afternoon when Mitch Elton left the fold.
Mitch has been our Business Development Manager for almost 4 years and was integral in the structure of our Property Management Department.
She has been a mentor to most of the Property Managers on our team and is one of the most influential and well-known Property Managers throughout Darwin.
Mitch has been an industry trainer, REINT Property Manager of the Year and was a leader in her field.
It has always been a dream of Mitch’s to become a full-time Trainer and she is leaving the industry to pursue her lifelong goal.
Her team at Raine & Horne Darwin wishes her well and she knows that we are keeping her seat warm in her absence if she ever decides to re-enter the Property management game.