If you’re an investment property owner in Balmain, Birchgrove, Rozelle or in a nearby suburb, you might be wondering how to raise rents given the current economic situation. Or, if you’re considering purchasing a Balmain property as an investment, how can you achieve the best rental rates?
Here we take a look at how COVID-19 has impacted the rental property industry in Balmain and the Inner West and why a good property manager could be the answer to a lot of your questions.
Is Balmain a good suburb for property investors?
Like just about everywhere, the COVID-19 pandemic has impacted Balmain property price growth. However, it has also changed renters’ priorities when it comes to choosing a property to rent. As many people are likely to be working from home for the foreseeable future, they are less keen to find properties close to the CBD or transport links. Instead, they want to live in an area that offers a great outdoor lifestyle, particularly if it’s close to water.
The Balmain peninsula is appealing to renters for this reason. As every Balmain suburb profile will tell you, there are plenty of houses with gardens, enabling people to make the most of outdoor living. This is going to be more important as summer approaches and we’re drawn to the outdoors for entertaining. As a result, rents are rising here, particularly for the more desirable properties. Houses are renting better than apartments here as people are keen to enjoy the outdoors now that they’re working from home.
Are your current tenants likely to stay?
If you have good tenants who are currently near the end of their lease, you might understandably be anxious about whether or not they will choose to renew. With the current financial uncertainty, you have a balancing act to consider – will your tenant choose to leave if you decide to raise the rent?
Tenants in Balmain are financially savvy. They will consider a number of things when deciding whether or not to remain in your property. These include:
- Have you already lowered the rent for the property due to COVID?
- Are you likely to raise it again, and by how much?
- Could they get more for their money elsewhere?
This is where a good property manager can truly prove their worth. A reputable local property manager will have a thorough understanding of the real estate market. They will know exactly what is available and how much property owners are charging for each type of property. As a result, they will be in a good position to advise you what renters will be willing to pay and how much is too much.
What else can you offer your tenants?
It can take time to find good tenants. And, in the current situation, it’s important to try and keep your property tenanted. If you have tenants who are coming to the end of their lease and considering leaving, your property manager can find out what it would take to persuade them to stay.
This might not always be reducing the rent – it could be making a concession such as allowing pets. If your property is currently empty, this is also a great way of attracting new tenants as pet owners are always looking for homes that can accommodate their furry friends!
It’s worth noting that if you own an apartment, recent court decisions mean that you can’t prevent your tenants from having pets.
Conclusion
This is a tricky time for both landlords and tenants. With the COVID-19 pandemic still running its course, you will need to think carefully about raising your rents this year. A property manager can make this decision easier for you.
However, on the positive side, Balmain properties are still renting out well as Balmain remains a highly desirable suburb for renters.
Looking for help selling your home or renting your investment property? Our team at Belle Property Balmain support homeowners across Balmain, Balmain East, Birchgrove, Rozelle and Lilyfield. Feel free to get in touch for a no-obligation discussion or property appraisal.
