A lot has changed for property managers in Melbourne in 2022. Take a look at the evolving expectations of renters to see if your service and properties measure up.
Working from home has changed the way people approach their living spaces and this applies to the rental market as well as those who are buying property.
Renter expectations are changing and not only because of the current evolution in lifestyle. COVID has had an impact on vacancy rates, which puts the power ball back in the renter’s court.
Take a look at how things are different in 2022 and beyond in terms of renter expectations.
Internet is essential to life
The meme being shared on the internet says life’s necessities are food, water, shelter and WiFi.
While having an internet connection may have been a nice-to-have in the past, working from home makes it essential. For those trying to teach children or sit through video calls, the connection needs to be strong and reliable.
If you are leasing property, an internet connection should be as much of a priority as fire alarms.
The ideal home layout is changing
Any home with a study or separate area which can be used as an office is more sought after in today’s environment.
You may have a client with a home featuring an open plan layout. Could an additional wall or two allow for someone to have peace and quiet while they work? If so, it may be worth making an upgrade to attract better quality and longer term renters.
Acoustics are important as well. Nobody wants to work with the sound of traffic or construction interfering with their thought process. A client seeking to attract new renters may want to keep this in mind as they review the benefits or drawbacks of their property.
For growing families, separate living areas are also in demand. There is such a thing as too much quality time and parents and children alike benefit from being able to relax in separate parts of the home.
Light and space matter
When you can only go outside for an hour a day or when your home becomes more of a haven than ever due to travel and dining restrictions, it is nice to have plenty of natural light, a balcony or a garden.
Dark, poky apartments are harder to let at this time because they feel too restrictive. Whereas once students who are never home may have been ok with such an arrangement, you’ll have less luck finding renters for a cramped apartment.
The pendulum has swung in the renter’s favour
Most cities draw from a pool of international students to fill rental apartments, particularly near educational hubs.
Sadly, those students remain at home in 2022, which has contributed to a glut of apartments on the market. To add insult to injury, many of the apartments which were offered as short term rentals on platforms such as Airbnb switched to long term leases. As a result, it can take several weeks to find renters, even for a quality property with an outstanding property manager on the job.
As the RBA reported in late 2020, COVID caused rental incomes to decline. With the cost of renting an apartment decreasing in Sydney and Melbourne in particular, property investors need to be flexible and open to negotiating.
Right now, renters know they have the right to ask for a rent reduction thanks to a great deal of information being shared by tenant advocacy groups. While it is not ideal for the PM or the property owner, a bird in the hand is definitely worth two in the bush, mostly because there are not a lot of rental birds in the bush right now.
Offering incentives to new tenants such as one or two weeks’ free rent, or dropping the rent either temporarily or for the long term as a way of attracting new tenants may be the only solution to avoid having an empty property.
Renters want more for their money
Renters who do pay a premium for their accommodation expect more than the bare minimum. Functional air conditioning, allowance for pets and fresh paint or carpets may be on their must-have lists.
If you have property owners on your rent roll who have funds available to make their home as appealing as possible, it will make sense to do so. This applies to listings as well; with so many homes available for rent online images need to look impressive to be noticed. Consider virtual staging or even a property stylist to attract those eyeballs.
In time the pendulum will swing back but for now renters have the power in many ways. By tailoring properties as much as possible to suit them, you and your clients will be able to benefit from the ongoing income they generate.
As a property manager, it is important to communicate all this to your clients. This will help them to be aware of what’s going on and to make the right decisions if a renter wants to negotiate or end their contract.
BDH Solutions are rent-roll agents with over 40 years experience in connecting the right vendor with the right purchaser. Download our information booklet on the new Victorian Minimum Living Standards Legislation