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National Vacancy Rates Marginally Increase in October

finger pointing at graphs

SQM Research today has revealed the national residential rental vacancy rate marginally increased to 2.1% over the month of October 2020. The total number of vacancies Australia-wide is now 74,221 vacant residential properties. This time last year, the national vacancy rate was also at 2.1%.

In most capital cities the vacancy rate remained stable over the month except for Sydney which saw a minor increase from 3.5% in September to 3.6% in October. Melbourne recorded a larger increase from 3.8% in September to 4.4% in October. Melbourne continues to have the highest vacancy rate in the nation with an additional 3,863 vacant properties in October. The surplus of rental property is most acute in the Melbourne CBD where vacancy rates stand at 10.6%.

Hobart’s vacancy rate is the lowest in the nation at 0.6%.

vacancy rate oct 2020

Asking Rents

Over the month, Capital City average asking rents increased 2.1% for houses but decreased 0.5% for units for the week ending 12 November 2020 to record asking rents of $538 per week for houses and $409 per week for units.

Most capital cities recorded increases in house asking rents, with Sydney recording the highest increase of 3.4% over the month, but a decline of 0.6% in unit asking rents.

In Hobart it was reversed, the city recorded a decline in house rents of 4.7% but an increase in unit rents of 1.5%.

Darwin was the only capital city to record rental increases in both houses and units, with the highest increase in the nation of 4.2% for house rents and 2.7% for unit rents.

Melbourne however recorded declines in both house and unit asking rents over the month of 0.4% and 0.5% respectively.

Adelaide recorded a 0.5% increase in house rents but a 2.0% decline in unit rents. Canberra recorded a 1.6% increase in house rents but unit rents remained stable. Perth unit rents also remained stable and house rents increased 1.2% over the month. Brisbane house and unit rents remained stable.

Year on year, Capital City Average asking rents declined for both houses and units, 2.0% and 6.0% respectively. Sydney in particular recording a high 7.2% decline in houses and 0.6% decline in units in October 2019.

table weekly rentals Oct 2020

Rental vacancy rates continue to remain elevated in our larger capital cities

While regional locations are still recording near zero rental vacancies. I believe the ongoing phenomenon, which started on the outset of Covid-19 lockdowns will in part reverse out once Coronavirus is behind us. But we are not there yet and there is also a large possibility that there will only be a part reversal as I believe many have used Coronavirus as a catalyst for a longer-term lifestyle change.

Meanwhile rents continue to plummet on our inner-city locations. For those who will be coming back to inner city living, there are some bargains to be had.

Source: SQM Research Residential Newsletter – Tuesday 17 November 2020 – https://propertyupdate.com.au/national-rental-vacancy-rate-marginally-increases-in-october/

 

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Tenants and Property Managers: Cleaning Under the New Normal

cleaning with broom and dustpan

With nothing but time, plenty of them, on our hands during this pandemic-imposed lockdown, we’ve got time to contemplate a lot of things – from the most profound to the most mundane.

You probably started thinking about things that you never get to do while busy with your normal life pre-pandemic. While sitting at your kitchen table you suddenly come to the conclusion that the stove, the microwave and the oven won’t clean itself. They will need to be scrubbed for you to be able to cook food without grossing yourself out, or worst giving yourself food poisoning.

The world has come at a standstill, or so we thought. But the reality is life goes on, though under the so-called “new normal.”

There’s nothing like being stuck within the four walls of your home to make you come to the realisation that the cleaning tasks that you have been able to successfully put off before Covid-19 arrived can no longer be ignored – because there’s not a lot of things you can do.

Dust and Dirt Are Magnified During Lockdown

Pre-pandemic, we have various things to distract us from the dust, dirt and clutter that accumulate throughout our home. It’s so easy to delay taking action because we’re never in our home most of the day anyway. But in lockdown, you have nowhere else to go and you will start to notice the mess and grime around your house seem to be getting grosser and grosser.

Cleaning Remains your Maintenance Responsibility

Even amid a pandemic, cleaning continues to serve the purpose of maintaining your home and appliances.

If you live near the beach, wash the outside of your house regularly to lessen the corroding impact of salt air. Your dishwasher is probably seeing so much action than normal, cleaning it gets rid of the disgusting food residues, keep it looking shiny and avoid the potential blockage that can lead to an expensive plumbing job.

Your Property Manager is Watching You

You can’t use the pandemic or the lockdown to procrastinate on your cleaning tasks, thinking you’re the only one who will see or suffer your grubby surroundings.

Property managers continue to do their job of looking after the properties assigned to them.

During this pandemic, you may refuse physical entry for inspections and other non-essential reasons. However, you cannot decline virtual inspections, if physical inspection cannot be conducted.   

This means your property manager will continue to check your property to make sure you are abiding by your responsibilities with regards to the upkeep and maintenance of your rental property – and this includes keeping up with regular cleaning.

Cleaning is never ending

Life has returned to roughly what it was once before pandemic in almost all of Australia, but cleaning is still never-ending. You’ll find out that this health crisis has not stopped cobwebs, dust and mould.

You’re probably back to your hectic life, but take time to look around your house. You will probably discover that dust has again accumulated on your display cabinet, your kitchen counters are a little dimmer, or your oven window is no longer see-thru.

Pandemic or not, cleaning is non-stop. You have to keep up with it not only to keep your landlord and property manager happy come inspection time, but to also keep you and your family protected against any health issues that may arise from dirty living conditions.

The task of cleaning of your home seems different during lockdown with all the new rules and restrictions. But it is basically just the same – it remains a regular thing.

The lockdown may have necessitated an easing up on some tenant and landlord obligations, but landlords/property managers can send a notice to leave for approved reasons, except rent arrears caused by financial distress due to the impact of COVID-19. One of those approved reasons is neglect of the property.

Australia is fortunate that we have somewhat defeated the virus, without any full-blown cases of infection and deaths among the population.

However, COVID-19 remains a threat and will continue to be so until an effective vaccine is developed, which is not expected to happen anytime soon. This means, the public health and safety protocols for the public and businesses will remain in place.

While certain adjustments and limitations have been put in place in response to the pandemic, tenants, landlords and property managers are expected to continue fulfilling their respective responsibilities. These include, among other things, doing your part as a tenant to make sure your home is clean, especially during this time of health crisis. 

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Guide to Spring Cleaning for Rentals Properties in Australia

Though the traditional reasons for spring cleaning do not apply to modern Australian life, spring remains the perfect time to do a thorough cleaning of your home.

Sure, the tasks ahead feel daunting. But think about the exhilarating feeling afterwards from being able to see the the sun shine through sparkling clean windows and lying on clean sheets without seeing dusts or cobweb on your ceiling.

If you own your home, you can clean to your heart’s content. But, if you are renting, the property is still owned by your landlord, who may still retain a few responsibilities for cleaning and upkeep.

Check your lease

As a tenant, you don’t have the right to do whatever you want in the space you’re living in. If you’re in the dark regarding this, your responsibilities in the upkeep and cleaning of the premises are usually stated in the terms of your lease. Your lease will tell you what your limits are in terms of what part, furnishings or appliances in the home you can and cannot touch.

This lease is legally binding, which means you have to follow it to the letter.

You may be in violation of your lease if you fail to abide by these terms, or if you don’t take general care of the property. You may face fines or eviction if you don’t do your part in keeping the home clean and safe.

Spring cleaning in rental properties

What are the responsibilities of the tenant and of the landlord?

Renters often take on the task of cleaning and small maintenance. Major maintenance, such as structural repairs or inspections, is usually undertaken by the landlord. But each task is different for a given situation, so coordination is important between the renter and the landlord.

Just remember that the rule of thumb is: landlord and tenants should never do anything that would damage or put at risk each other’s possessions.

Spring cleaning tasks for landlords

The change of season to spring is the perfect opportunity to clean the outside of your property – and inspect it at the same time to see what damage the past seasons have done to it. Doing this would save you a lot of money down the road.

Check if the gutters have accumulated debris like leaves and other organic materials over the autumn and winter seasons. Also check the roof and ceiling for damage ot break that little critters can use to get inside the property.

Inspect the window screens whether they are damaged or need cleaning. Check for cracks or damage in caulks and sealants. If you see that the interior windows need cleaning, kindly remind the tenant to take care of it.

Spring cleaning for tenants

One of the benefits of renting is that you have fewer responsibilities for the upkeep and maintenance of the property. However, you are still responsible for making sure your space is always clean and properly maintained.

Your responsibilities maybe fewer, but there is still work to be done. Inspect the HVAC system for dust and debris and replace the filters. Clean the bathroom fan. Also, replace the batteries in smoke and carbon monoxide detectors.

Spring is the perfect weather to do all the deep cleaning tasks around the house. Here are a few tasks that should be on a tenant’s spring cleaning to-do list:

  • Dust from to bottom, taking special care in hard-to-reach places that are neglected during the daily cleaning tasks.
  • Clean the walls that may have been scruffed by moving furniture, by children or by general use.
  • Wash window screens and sills.
  • Vacuum low-traffic areas such as under the furniture, the floors of closets, and other hard to reach spots.
  • Clean carpets with a vacuum or carpet cleaner. Talk to your landlord about paying part of the cost for hiring a professional carpet cleaner.

Bottom line, both tenants and landlords have the responsibility of maintaining the property. Tenants should make sure that the home is regularly cleaned and maintained to protect their rental bond and save them a lot of work during the end-of-lease cleaning. And landlords shouldn’t fail to remind tenants on how important it is clean and properly maintain the property.

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Queensland Property Market Defies Pandemic Predictions – REIQ Quarterly Queensland Market Monitor

black tablet showing market data

Most prophets of doom tend to share one thing in common: their predictions never come to pass. In fact, Queensland’s real estate market continues to defy even the most conservative predictions of property price falls as a result of the COVID-19 pandemic.

“The fact is, Queensland’s residential property market continues to show remarkably stable results, with the first full quarterly COVID-19 property price report giving Queenslanders a comprehensive look at how the pandemic has affected our State’s housing market,” said Antonia Mercorella – CEO of the Real Estate Institute of Queensland (REIQ). “Restrictions on auctions and open homes coupled with border closures, restricting interstate buyers as well as international investors, have certainly proved challenging for our market. To counter this, the real estate industry proved itself highly agile, adapting to technology substitutes in place of live auctions and physical property inspections at almost lightning speed. And buyers and sellers were equally quick to embrace it. The evidence is in the numbers, with over 8,600 property transactions across Brisbane and more than 7,100 across regional Queensland in the three months of April to June.”

So, what’s the state of Queensland’s property market? Powered by CoreLogic’s latest data for the April-June 2020 quarter, a spectacular standout is that across 13 major regions, only two reported marginal price retractions – these included Cairns (0.5% and 1.3% drop in median house and unit prices respectively) and Mackay (2.2% drop in median unit price). However, Mackay, coupled with Gladstone, recorded the highest annual median house price hikes for the State (5.9%). But it still wasn’t a match for Noosa, which remains Queensland’s most expensive jewel in the crown with a median house price of $836,724 and median unit price of $715,000.

And while it’s fairly unusual for any location to have all asset classes firing at the same time, that certainly wasn’t the case in Toowoomba. The region’s house, unit and land markets were all in the top three performers for major locations over the period. Toowoomba remains extremely affordable which has strengthened its appeal with both owner-occupiers and first home buyers in particular, who have been quick to move on both new builds and vacant land thanks to the HomeBuilder grant.

Meanwhile, the median house price in our State’s capital increased 0.7%, with Brisbane house prices remaining stable with 2.8% annual growth which is a satisfying outcome considering the city recorded negative growth across all three months for the quarter. However, this was chiefly due to a softening in the unit market which saw zero growth while a median drop of -3.1% was recorded in areas including Brisbane’s CBD and Fortitude Valley. This decrease in transaction activity and rentals shows the property market isn’t immune to the COVID-19 economic fallout – CBD job cutbacks and office shutdowns along with hospitality and retail outlet closures have all played a significant part. The overall impact on property values will depend on how long it will ultimately take to contain the virus, how deep this recession will reach and how fast Queensland’s economy will rebound.

“Brisbane’s affordability, low income-to-debt ratio, change in investor behaviour, rise in rental vacancies and historically low interest rates, which the Reserve Bank recently highlighted will likely remain for at least the next three years, along with the range of government grants currently available has seen first home buyers come out in force, allowing our capital city property market to continue to transact,” added Ms. Mercorella. “What’s helping drive price stability in the market is that while there’s increased demand driven by housing specific incentives such as the First Home Owner’s and HomeBuilder grants, advertised supply levels remain tight.”

COVID-19 has also accelerated interstate migration into Queensland, with predictions that a massive influx of Sydney-siders and Melbournites will make the move to the Sunshine State once border restrictions are eased. “Prior to the outbreak of the pandemic, Queensland was the number one destination for interstate relocations – particularly from major metropolitan areas such as Sydney and Melbourne. As this pandemic continues to affect us all, it’s introduced many of us to the possibility of a ‘new normal’ way of working – that is, remotely from home. And spending more time at home is seeing more people considering their options,” further explained Ms. Mercorella. “As a result, interstate demand continues to strengthen in Queensland with the main drawcards being affordability, livability and the lifestyle on offer. And while border restrictions haven’t stopped interstate buyers from snapping up properties sight unseen over the last few months, we anticipate this demand to surge in the coming year ahead as we navigate through to the other side of this pandemic. Perhaps this is one prediction that will ultimately prove right!”

While the property market is currently insulated thanks to wide range of monetary and fiscal policies that have been rolled out by both the Federal and State Governments in an attempt to soften the blow to the broader economy, the biggest concern is the impact of job losses. This is likely to create some downward pressure on property values as income and borrowing capacity is limited and sentiment levels drop. However, with the Federal Government preparing to unveil tax cuts and spending measures in the October 6 budget which will include lending reforms intended to improve access to credit, perhaps it’s not all doom and gloom as some pundits might have you think.

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REIQ Demands Qld Gov’t Protect Our Property Market Now

market data

The Real Estate Institute of Queensland (REIQ) is demanding urgent action from the Palaszczuk Government to protect Queensland’s property market right now as a new wave of contagion threatens to undo the State’s recognised efforts of containing COVID-19 to date.

CEO of the Real Estate Institute of Queensland (REIQ) Antonia Mercorella said the peak body had already made numerous calls on behalf of Queensland’s real estate industry for essential temporary measures to help minimise the economic impacts of COVID-19 on the sector. These include a 75% reduction in stamp duty and extending the First Home Buyers Grant to established housing.

Following four months of gains to April 2020, property values have fallen nationally by 1.7% following a third consecutive month of declines in July 2020, with CoreLogic’s Hedonic Home Value Index dropping 0.6% over the month (following -0.4% in May and a further -0.7% in June[1]).

“Record low interest rates, significant policy support and loan repayment holidays for distressed borrowers coupled with an earlier reopening of the economy and our State’s borders have meant the various worst-case scenarios of 20-30% price falls that some economists predicted are unlikely,” said Ms. Mercorella. “However, with Queensland’s unemployment currently at 7.7%[2], consumer sentiment down 5.8 points this month (the second largest fall this year) and the latest consumer price index figures plummeting to a record 72-year low, any significant drops in property prices will only adversely affect consumer confidence and further and stymie economic growth.

“A stable property market is critical to Queensland’s economy during this unprecedented pandemic recession. What’s required is more than token stimulus measures such as land tax liability deferments, when most Queenslanders are not liable to pay land tax, or limited recovery initiatives such as the HomeBuilder grant which outprices many people from qualifying,” continued Ms. Mercorella. “A widespread second wave of COVID-19 infections coupled with the potential for renewed border closures and stricter lockdowns will derail Queensland’s economic recovery. Timing is everything. That’s why we need urgent action now that will have immediate effect.”

In order to maintain stability and optimism in the Queensland property market, the REIQ is urgently asking the Queensland State Government to implement:

  • A 75% temporary reduction in stamp duty: A significant short-term reduction in stamp duty payable on property transactions will have a positive effect on market confidence, boost listings (currently down -12.5% YTD[3]), increase buyer/seller activity and real estate transactions (which fell to their lowest levels in April 2020 (-40%) with sales almost 31% lower than this time last year[4]) and boost investor interest which is needed to offset Queensland’s extremely tight rental market (currently 1.6%[5]).
  • Extend the First Home Buyers Grant to established housing: First home buyers have experienced a 220.3% increase in the price of new construction over the time period 1995/96 to 2017/18 (while CPI over that time was 69.9% and the mean gross household income increased by 64.7%[6]). By allowing first home buyers to access property beyond new construction it will stimulate economic activity through the introduction of increased numbers to the broader property market and expose them to more affordable price points.

“With the NSW Government temporarily axing stamp duty to help boost economic activity to protect its property sector, it’s time our government took similar action,” said Ms. Mercorella. “Particularly when you consider total tax revenue collected across all levels of government increased $31.234 billion (5.9%) from $528.60 billion in 2017/18 to $559.83 billion 2018/19 which included a 7.9% increase in taxes on property ($2.38 billion[7]) – it demonstrates there’s scope for additional measures such as what we’re asking to be temporarily implemented to protect our property market.

“Furthermore, these measures will help to protect the jobs of over 50,000 people who directly rely on our State’s second largest employment sector for work while continuing to deliver housing across Queensland’s thousands of local communities,” added Ms. Mercorella. “As the single biggest purchase in most people’s lives, we call on every Member of Parliament to help protect the property market in their electorates and implement these urgent measures to minimise the economic impacts of COVID-19 on Queensland’s real estate sector before it’s too late.”

[1] CoreLogic Hedonic Home Value Index, August 2020

[2] ABS: 6202.0 – Labour Force, Australia, June 2020

[3] CoreLogic Hedonic Home Value Index, August 2020

[4] CoreLogic Quarterly Economic Review May 2020

[5] SQM Research Quarterly Vacancy Rates July 2020

[6] ABS: 4130.0 – Housing Occupancy and Costs, 2017-18

[7] ABS: 5506.0 – Taxation Revenue, Australia, 2018-19

Source: https://www.reiq.com/wp-content/uploads/2020/08/REIQ-Media-Release-PROTECT-OUR-PROPERTY-MARKET-NOW-04082020.pdf

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Gutter cleaning: Who is responsible, landlords or tenants?

gutter with dry leaves

“I need a gutter clean. But is the landlord or responsible for clearing gutters during a tenancy, and why?”

Kaylee Ferguson, Department Manager for The Property Exchange in Subiaco, WA, explains where responsibility falls for gutter cleaning:

“During a tenancy, the landlord/owner is responsible for cleaning the gutters,” she said.

“This [gutter cleaning] is a maintenance item that the owner is required to undertake as part of their upkeep on a property.”

Kaylee recommended a gutter clean every year to avoid any resultant damage occurring to the property.

Why should I have my gutters cleaned?

The gutters on your rental property collect rainwater from the roof. They carry it away from the foundation of the property through downspouts.

Over time, gutters can become clogged with leaves, insects, nests, sticks and other obstructions – particularly over the winter months when storms can affect nearby trees.

Regular maintenance and gutter clearing are essential for a couple of reasons. When debris builds up, it stops your gutters from functioning the way they should.

If you haven’t given much thought to your gutters, don’t worry. You’re not alone! Gutter cleaning is pretty easy to put off. It’s not an easy chore to do, let alone an enjoyable one – but it is important.

When should I have my gutters cleaned?

It’s relatively easy to know when your gutters need a clean. A well-built gutter will be able to handle most normal periods of rainfall. If you notice that your gutters are beginning to drip or overflow, it’s a sign that they need a clean (or a professional inspection).

You may also notice that birds will hang around your roof if they spot pooling water that’s caused by blocked guttering.

As a general rule, it’s worth having your gutters cleaned once a year. The best time to look at them is in autumn or winter, once the trees surrounding your home have shed their leaves.

However, you may need to clean your gutters more than once a year. Do you have pine or eucalyptus trees near your property? These trees shed throughout the year, and often during the hot summer months. If leaves start blocking your gutters during summer, you could have a fire risk. Clearing debris is essential if you live in a bushfire-prone area.

Property owners: DIY safety tips for gutter cleaning

Gutter cleaning and maintenance can keep your investment property safe from potential storm damage. Regular cleaning will help to extend the life of your gutters and prevent further damage to the building structure.

  • Safety first: Accessing your gutters can be dangerous. Ensure you use proper safety equipment to avoid the risk of falling and sustaining an injury. If you use a ladder to access your gutter, ensure it’s stable. Consider having someone assist you with cleaning and maintaining the gutters. Having someone stand below to help secure the ladder can be a big help.
  • Use the right tools: Your local hardware store should have plenty of options to help you clean your gutters. Invest in a good pair of gardening gloves to protect your hands while you clean. Think about grabbing items like a cylindrical brush to scrub the gutters, or a gutter scoop to remove debris.
  • Assess the condition of your gutters: There are a few red flags to look for once you’ve cleared the debris from your gutters. Can you see any holes, cracks or broken brackets? If so, consider arranging for a roof repair specialist to inspect and repair your roof. Unchecked issues can potentially damage other parts of your home.

Source: https://www.rent.com.au/blog/responsible-gutter-cleaning

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Technology that helps renters turn a house into a home

interior design kitchen

As a renter, it can often feel as though you’re asking your landlord if you’re allowed to sneeze in your own home.

Rest assured, when you want to make modifications to your rental, you just need to ask!

However, if you still want to decorate and make your home comfortable without ruffling feathers, there’s some top technology on the market which will help you achieve your goals.

Hanging art

This is often a big one among renters. The landlord is most likely to give the go-ahead, you just need to ask.

However, if you’re concerned, there are ways around making holes in the wall. Using sticky hooks is one way and there has been a lot of advancement in the production of these throughout the years.

Command goes up to a 7.6kg holding weight, so those larger pieces of art can have a place in your household.

Just make sure that you clean the surface of the wall properly before sticking the strip onto it and that it won’t rip away any paint – plaster walls, for instance, aren’t good options.

Command hanging strips range up to $18.

Painting the walls

One of the best ways to brighten up a room is to give the walls a fresh lick of paint.

Renters can feel as though this is a big ask of their landlords, but there are ways to make your landlord feel more at ease about you bringing out the paint and brush.

The rule of thumb for renters is to leave the house as you found it, so if you do paint the walls (with your landlord’s permission), you can always paint them back to the original colour and Tint Paint can help.

The high-tech paint company has developed a colour reader called a Pico, which reads what colour you direct it on to. The company will send out that exact colour from their warehouse.

This means renters can read the colour of the wall prior to painting, so when they leave the rental, they can repaint the walls in the original colour.

Pico retails for $79, which is redeemable in products.

Air conditioning

A lack of air conditioning might not seem like a big deal during winter, but come summer, all you want is some cool air flowing through your stuffy house.

If your landlord isn’t prepared to install air-conditioning within the house, there are some high-tech portable options to choose from.

DeLonghi, which is usually known as a company that makes coffee machines, has a popular portable air conditioner on the market that will keep the whole room feeling cool.

The Pinguino Silent automatically adjusts temperature and humidity, and is very quiet. It also has an A+ energy-efficiency rating so you can feel okay about your bills each month.

The Pinguino Silent retails for $649.

Planting a veggie patch

A garden at a rental usually has to be maintained by the tenant – however, ripping it up and replanting your own veggie patch is likely to give your landlord the grumbles.

High-tech solutions, like the Vegepod, mean you can still have a veggie patch that won’t disturb the pre-existing garden.

The pods are all self-watering, have a protective cover, and produce their own microclimate.

Vegepods start at $169.

Source: https://www.realestate.com.au/news/technology-that-helps-renters-make-a-house-a-home/

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