The rise and rise of Sydney rental apartments: Edwin Almeida's warning to landlords

The rise and rise of Sydney rental apartments: Edwin Almeida's warning to landlords
The rise and rise of Sydney rental apartments: Edwin Almeida's warning to landlords

The growing number of available apartments for-lease in Sydney; should send shivers down the spines of newbie investors that bought off-the-plan.

Not to mention, the investors that bought due to, fears of missing out (FOMO) and being pressured from so called financial-advisors (so called experts), the spruikers.

Unfortunately, this problem of oversupply and the lack of tenants won’t go away over the next few years, if not longer. Not even if you drank a few strong coffees and all to quell your fears.

Recent mainstream reports, are already talking about 200,000 new dwellings yet to be built and all coming to completion within the next 24 months.

Below is a preview of the growing local Sydney vacant-apartment market, in some of our suburbs. (Data sourced from leading property portal adds)

Tips on how to get your apartment tenanted, in a market of growing apartment-rental oversupply.

If you are one of the unfortunate investors, in any one of these apartment blocks or areas where there is a vast amount of vacancies; take these simple steps to have your property leased quicker than the others:

  • Insist on obtaining access to your unit prior to settlement: to take internal photos for advertising and to show the property to prospective tenants.
  • If you bought through an agency or marketing-company, note that this same company sold to a lot of other investors: therefore, list your property with a local property management agent (PM), they will focus more on your property.
  • Find out from the selling agents/marketing company, how many apartments are available for lease in your block. This information will give you a clear idea of the rental price offering: therefore, don’t be scared to be the first to drop the asking price in the block, if required.
  • Make sure your agent is aggressive. When you have 11-15 property managers on a building site and all waiting for potential tenants at the open: you need an agent that can move fast and one that is not shy.

Signs of the times

Our greater audience and readers, will no doubt have more tips on what to do. The four tips shared above, have worked well for our team, in the past and lately. Feel free to share.

The sooner your PM team has access to the unit, the better chance you have of renting your property and at a good price.

Recent experience

Our team has just leased a unit in a complex of 270 apartments. The team found out that there are approximately 256 available for rent; sold to investors that is. Our PM spoke to the landlord and he quickly put in place the tips shared above.

The leading selling agency and other PM agencies advertised at $620+/week on like units, for-lease. Our PM advertised the unit for $620 and on the day of the open: he scheduled for an early morning open, but he still had 10 other PM agents alongside offering their landlord's apartments.

When a tenant approached the group and walked around the building; our PM walked up to him, asked if he was after a rental. After discussions with the Landlord and further ongoing checks and balances from our team; they signed the tenant on a 12 month lease and for $600/week.

Two weeks on, and you will now see on the property portals and in the same building, adds for like apartments at $520-$580/week.

I dare say, there is probably another 150-220 apartments still available for lease in that complex.

 

EDWIN ALMEIDA is licensee in charge of Just Think Real Estate.

He is also the creator of Oz Real Estate.TV and a presenter for propertyinvestingvault.com.

 

Edwin Almeida

Edwin Almeida

Edwin Almeida is managing partner and licensee-in-charge of Just Think Real Estate.

Tags: 
Apartments Rental market

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