News

Australia is currently experiencing a nation-wide rental shortage.

Record low vacancy rates, escalating purchase prices and a short-term exit of new investors from the market has combined to create these unusual and unprecedented rental market conditions.

At Trove, the demand for rental properties is at an all-time high, with many qualified prospective tenants struggling to secure a place to call home. In the 18+ years Managing Director, Rebecca Day has owned and managed Trove, she has never seen an event like it.

“We have never seen rents escalate in some suburbs so quickly in such a short time frame.  These increases, coupled with the increase in day to day living costs are seeing many tenants struggle to make ends meet” said Ms Day.

“As our Property Management team researches and prepares for annual rent reviews we are faced with some difficult and often heart wrenching discussions with landlords and tenants.  Every circumstance for both landlord and tenant is different and these factors must also be taken into consideration – along with trying to maintain valuable long term tenant relationships. For many tenants it is frightening and many will struggle to keep up with the increased payments."

Detailed and tailored research remains crucial for individual rental property reviews as there is no “one-size-fits-all” ‘rent increase’ suggestion.

For new investors entering the market, price increases are necessary to make it remotely viable to buy an investment property, as the cost to purchase has increased so dramatically. For existing investors, the potential increases are welcomed after a long period of minimal increases, particularly if interest rates and other holding costs continue to rise.

In hopeful news, the State government has shared their commitment to addressing immediate and long-term housing issues, such as reviewing the private rental assistance program and the emergency accommodation program, as well as upgrading existing public housing units and building 400 homes.

Trove is dedicated to communicating transparently with both landlords and tenants regarding rental market conditions – readied with comprehensive statistical suburb reports and leasing trends.

“We encourage our landlords and tenants to contact the office and their dedicated Property Manager with any queries they may have – we are here to work with you to find solutions and provide as much information as we have available,” says Ms Day.